Indian stock markets witnessed a sharp sell-off on Friday, with benchmark indices plunging in the final hour of trade as investors grappled with uncertainty over a potential US-Iran peace deal, MSCI's latest index rebalancing and concerns over elevated crude oil prices.
The BSE Sensex ended 1,092.06 points, or 1.44 per cent, lower at 74,775.74, while the NSE Nifty50 slumped 359.40 points, or 1.5 per cent, to settle at 23,547.75.
Market breadth remained weak, with 2,507 stocks declining against 1,568 advances on the BSE.
Uncertainty over US-Iran peace deal was a key trigger behind the decline, with investors opting to lock in profits amid concerns that geopolitical tensions could persist.
MSCI rebalancing fuels late sell-off, with losses swelled in the final half-hour of trade as MSCI's May index rejig came into effect.
Oil prices remain a concern, with Brent crude futures falling about 19 per cent during May, but prices remain more than 27 per cent above levels seen before the Iran conflict.
Analysts said concerns over oil prices, combined with geopolitical uncertainty, have made investors cautious on Indian equities.
Foreign investors remain selective, with market experts noting that foreign investors have remained selective towards Indian stocks amid concerns over valuations, elevated oil prices and the absence of a strong artificial intelligence-led technology rally.
