Equity benchmarks, the Sensex and the Nifty, opened in the red on Friday after a sharp decline, sparked by ongoing geopolitical tensions in West Asia (or the Middle East).
The majority of stocks traded lower amid rising selling pressure, uncertainty, and a surge in Brent crude oil prices.
The Sensex opened Friday's trading session at 79,658.99, down by 500 points or approximately 0.60 per cent. The Nifty50 opened with a loss of 150 points or around 0.60 per cent, at 24,656.40.
The BSE Sensex fell 500 points, while the Nifty 50 dropped 150 points within one hour of the opening bell.
Earlier, global oil prices pushed Brent crude above $85 a barrel for the first time in more than a year, as the widening Iran conflict threatened to trigger convulsions in the world economy.
The Dow Jones Industrial Average fell 1.6 per cent, or 785 points, while the S&P 500 declined 0.6 per cent and the Nasdaq Composite slipped 0.3 per cent. Asian shares also fell 0.7 per cent at the open.
The rupee weakened against the US dollar but remained on course to post its first monthly gain since October last year.
According to bond market experts, the Reserve Bank of India stepped up its intervention in the government securities market this week to stabilise the rupee after it hit a record low on Wednesday.
Meanwhile, Morgan Stanley adopted a cautious stance on Asian equities owing to the ongoing conflict in Iran and fears over supply chain disruptions.
The firm highlighted Asia’s strong dependence on Middle Eastern energy and warned that markets may be underestimating the risk.
Also read: US stock market closes in red due to Middle East conflict
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