Mumbai, May 8 (PTI) Equity markets declined in early trade on Friday as escalating geopolitical tensions in West Asia and rising oil prices weighed heavily on investor sentiment.
Foreign fund outflows and
a weak trend in global markets further dented investor sentiment.
The 30-share BSE Sensex declined 353.50 points to 77,491.02 in early trade. The 50-share NSE Nifty dropped 109.25 points to 24,225.20.
The BSE benchmark further fell by 536.66 points to 77,331.75, and the Nifty traded 166.95 points down at 24,170.80.
From the 30-Sensex firms, Mahindra and Mahindra, Axis Bank, HDFC Bank, Eternal, Bajaj Finance and Tata Steel were among the laggards.
Asian Paints, Tech Mahindra, Adani Ports and HCL Tech were among the winners.
Brent crude, the global oil benchmark, traded 1.19 per cent higher at USD 101.3 per barrel.
"Indian equity markets are expected to remain cautious and highly sensitive to news flow, as escalating geopolitical tensions in the Middle East continue to weigh heavily on investor sentiment despite periodic relief rallies. The latest exchange of fire between the US and Iran near the Strait of Hormuz has further heightened uncertainty," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
The contrast between military confrontation and diplomatic messaging has kept investors on edge, curbing risk appetite and reinforcing a defensive undertone across global financial markets, he added.
In Asian markets, South Korea's benchmark Kospi, Japan's benchmark Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were trading lower.
US markets ended lower on Thursday.
"The deescalation-escalation drama in West Asia continues with crude prices moving down and up in response," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 340.89 crore on Thursday, according to exchange data.
On Thursday, the BSE benchmark ended 114 points or 0.15 per cent lower at 77,844.52. The Nifty dipped 4.30 points or 0.02 per cent to end at 24,326.65. PTI SUM
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