Stock market: Sensex tanks 600 pts, Nifty below 21,800 as Israel-Iran war looms

Sensex, Nifty today: Benchmark stock indices Sensex and Nifty tumbled on Friday morning, taking their recent fall to the five straight session, as reports of Israel striking Iran's Isfahan province emerged, raising fears of escalating Middle East tensions that sent Brent crude prices soaring 3 per cent. This, on a day, elections in India kicked started.

Reports of Israel strikes, days after Iran's drone and missile strike on Israel, pushed dollar higher, and dashed hopes of Fed rate cuts in near future. The dollar index, which tracks dollar against a basket six major world currencies, climbed to 106.25 level.

Following reports, the BSE Sensex fell 640 points to hit a low of 71,848.10. Nifty fell 180.45 points, or 0.82 per cent, to 21,815.40. "From a technical standpoint, Nifty has plunged below its 50 DEMA with a strong bearish candle formation, depicting an inherent weakness in the markets. The previous closure around 21,800 is likely to be seen as the pitstop for the bears, and if the bulls could not barge on there, then we may test the 100 DEMA placed around 21,600 on an immediate basis," said Sameet Chavan of Angel One.

Thirty of 30 Sensex stocks were in the red. Infosys led the losers with 2.29 per cent fall at Rs 1,388 after the IT major gave a less-than-expected FY25 revenue guidance. Axis Bank declined 1.88 per cent to Rs 1,004.90. Larsen & Toubro, Nestle India, State Bank of India, UltraTech Cement, Asian Paints, TCS, IndusInd Bank and Power Grid fell over 1 per cent each.

Overall, a total of 2,114 BSE-listed stocks were nursing losses against 2,875 active stocks for the day.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said reports of escalation in the Iran-Israel tensions have spooked the market. Distinct weakness in Asian markets and sharp cuts in US futures reflect heightened nervousness in equity markets, he said.

"There are headwinds from the bond markets, too. The sharp spike in US bond yields triggered big FII selling which touched Rs 4260 crores yesterday. More FII selling can be expected in the near-term putting pressure on largecaps.  Investors may wait for clarity to emerge on the geopolitical front. Uncertainty is very high," he said.

Brent contracts surged more than $3, before easing a bit. At 9.32 am IST, Brent futures were up $2.17, or 2.50 per cent, at $89.28 a barrel.