Indian stock markets fell to their lowest level in three months on Friday as escalating tensions in the Middle East pushed crude oil prices sharply higher. The Nifty 50 dropped 0.92% to 23,261.70, while the BSE Sensex fell 0.84% to 74,272.61. Both benchmarks touched their lowest levels since June 11.
The sell-off was broad-based, with 15 of the 16 major sectors trading lower. Financial, metal and auto stocks came under pressure, while small-cap and mid-cap stocks also recorded sharper declines. Rising Brent crude, which moved above $108 a barrel, raised concerns over inflation, higher borrowing costs and the possibility of tighter monetary policy globally.
Market pressure was further intensified by fears of disruptions to oil and shipping routes in the Middle East. Analysts said India, which relies heavily on imported crude, could face increased inflation and pressure on its external finances if oil prices remain elevated. The Nifty and Sensex are now down around 2.7% and 2.9%, respectively, for the week and are on track for a fifth consecutive weekly decline.