MUMBAI, Sept 11: Indian equity markets came under renewed selling pressure on Friday, with benchmark indices falling to their lowest levels in nearly three months as escalating tensions in the Middle East sent crude oil prices sharply higher.
The Nifty 50 declined 0.92 per cent to 23,261.70, while the BSE Sensex fell 0.84 per cent to 74,272.61 during morning trade. Both benchmarks touched their lowest levels since June 11.
The sell-off was broad-based, with 15 of the 16 major sectoral indices trading lower. Small-cap and mid-cap stocks also weakened, declining around 1.2 per cent and 1.4 per cent, respectively.
Financial, metal and automobile stocks were among the major casualties, with the respective sectoral indices falling around 1.4 per cent, 2.8 per cent and 1.3 per cent.
The latest decline came as Brent crude moved above USD 108 a barrel amid growing concerns over disruptions to energy supplies and shipping routes in the Middle East. Higher oil prices have raised concerns over inflation and the broader economic outlook for India, which relies heavily on imported crude.
Government bond yields also moved higher, with the benchmark 10-year yield crossing 7 per cent to reach a more than three-month high.
Market analysts said investors were increasingly cautious as higher energy costs could intensify inflationary pressures and influence monetary policy expectations globally.
Oil producers, however, bucked the broader trend. Shares of ONGC and Oil India gained as higher crude prices were viewed as supportive for upstream companies.
The latest fall also extended the market’s weekly losses, with both major benchmarks heading towards their fifth consecutive weekly decline.