FX.co ★ Sensex, Nifty Extend Selloff On Middle East Worries

Indian equity markets experienced a notable decline on Friday, extending the substantial losses from the prior session. This downturn was attributed to continuing geopolitical concerns in the Middle East and investor anticipation of a crucial U.S. employment report, which could offer further insights into the Federal Reserve's interest rate direction.

The U.S. dollar appeared set to record its largest weekly increase since April, while oil prices edged towards a weekly rise of approximately 9%, driven by fears of escalating Middle Eastern tensions.

Overnight, Israel conducted extensive airstrikes in the southern outskirts of Beirut and struck a location that severed the principal border crossing between Lebanon and Syria.

Iran’s Supreme Leader Ayatollah Ali Khamenei asserted today that the United States and its allies were ensuring Israel's security to facilitate its role as an energy transit gateway from the region to Western markets. However, he emphasized that regional resistance would persist against Israel.

The S&P BSE Sensex index concluded the trading session down by 808.65 points, or 0.98%, at 81,688.45. Similarly, the broader NSE Nifty index ended at 25,049.85, shedding 200.25 points, or 0.79%, relative to its previous closing value.

In terms of significant decliners, Bharat Petroleum Corporation Limited (BPCL), Nestlé India, Asian Paints, Bajaj Finance, and Mahindra & Mahindra saw their shares dip by 2-4%.