Indian equity indices tumbled in tandem with global markets on Friday after the killing of a top Iranian general by the US ratcheted up geopolitical tensions, triggering a flight from riskier assets.
After dropping over 286 points intra-day, the 30-share BSE Sensex ended 162.03 points, or 0.39%, lower at 41,464.61.
Similarly, the broader NSE Nifty closed 55.55 points, or 0.45%, down at 12,226.65.
Global equities swooned after top Iranian commander Qasem Soleimani was killed in a US drone strike in Iraq, marking a dangerous escalation in Middle East tensions.
World leaders reacted to the killing with alarm, even as Iran vowed “severe revenge”.
Safe-haven assets like gold and the Japanese yen strengthened as investors assessed the risk dynamics.
Back home, Asian Paints was the top loser in the Sensex pack, dropping 2.16%, followed by Axis Bank, Bajaj Auto, SBI, NTPC and Bajaj Finance.
On the other hand, Sun Pharma, TCS, HCL Tech, Infosys, Tech Mahindra and Bharti Airtel rose up to 2.08%.
During the week, the Sensex slipped 110.53 points or 0.26%, while the Nifty lost 19.15 points or 0.15%.
“Investors turned cautious as tensions emerge in the Middle East. Crude oil prices rose while strong dollar held IT and pharma stocks higher. With market testing new highs, emergence of geopolitical tensions could force people to book some profits.
“Crude prices could turn volatile due to risk of possible retaliation from Iran which could impact the performance in the short-term,” said Vinod Nair, Head of Research, Geojit Financial Services.
BSE power, auto, bankex, finance, metal, utilities and basic materials indices skidded up to 1.20%, while IT, teck and healthcare rose up to 1.52%.
Broader BSE Midcap index settled 0.45% lower, while the smallcap gauge closed in the green.
In rest of Asia, Shanghai and Hong Kong bourses ended in the red, while Seoul settled a tad higher.
Stock exchanges in Europe opened significantly lower.
Rupee plunges 42 paise
On the currency front, the rupee plunged by 42 paise to settle at a one-and-a-half-month low of 71.80 against the US currency on Friday due to a spike in crude oil prices after US President Donald Trump ordered strike on an Iranian commander.
At the interbank foreign exchange market, the rupee opened at 71.56, then lost further ground to touch a low of 71.81 against the American currency.
The unit finally settled at 71.80 against the US dollar, logging its biggest single-day loss of 42 paise in more than one-and-a-half month. The rupee had previously closed near this level on November 20.
On Thursday, the domestic unit had dropped by 16 paise to end at 71.38 against the US dollar. On a weekly basis, the domestic unit lost 45 paise.