Stock Market Slides as Sensex Drops 700 Points Amid Global Concerns

Indian equity markets witnessed a sharp decline on Friday, with both benchmark indices trading deep in the red as investors reacted to rising global uncertainties and sustained selling pressure in banking shares.

During the trading session, the Sensex dropped by nearly 700 points. By around 1 PM, it was trading 617 points lower at 77,533.51, while the Nifty declined 150 points to 24,183.35, slipping below the 24,200 level.

A major factor behind the fall was the renewed geopolitical tension in the Middle East, which pushed Brent crude oil prices up by 4 percent to 91 dollars per barrel. The surge in crude prices has increased concerns over higher inflation and its possible impact on the global economy.

Investor sentiment was also affected by weak cues from overseas markets. Major Asian indices recorded significant losses, with Japan’s Nikkei and South Korea’s Kospi each falling by nearly 4 percent, adding pressure to domestic equities.

The banking sector emerged as one of the biggest drags on the market after the latest quarterly earnings. HDFC Bank shares declined by 5 percent, while Axis Bank fell 6 percent, as investors reacted to margins that were below market expectations.

Among the Sensex 30 stocks, Maruti Suzuki, Kotak Mahindra Bank, Infosys, HDFC Bank and Axis Bank traded lower. On the other hand, Trent, Bharti Airtel, NTPC, Power Grid Corporation and Sun Pharma managed to remain in positive territory despite the broader market weakness.

Market analysts believe investors will continue to monitor global developments, crude oil prices and upcoming corporate earnings, as these factors are expected to influence market direction in the coming sessions.