Geopolitical tension grips markets

Mumbai: Indian equity indices tumbled in tandem with global markets on Friday after the killing of a top Iranian general by the US ratcheted up geopolitical tensions, triggering a flight from riskier assets.

After dropping over 286 points intra-day, the 30-share BSE Sensex ended 162.03 points, or 0.39 per cent, lower at 41,464.61. Similarly, the broader NSE Nifty closed 55.55 points, or 0.45 per cent, down at 12,226.65.

Global equities swooned after top Iranian commander Qasem Soleimani was killed in a US drone strike in Iraq, marking a dangerous escalation in Middle East tensions.

Safe-haven assets like gold and the Japanese yen strengthened as investors assessed the risk dynamics. Brent crude futures surged 4.4 per cent to $69.16 per barrel on supply concerns.

During the week, the Sensex slipped 110.53 points or 0.26 per cent, while the Nifty lost 19.15 points or 0.15 per cent.

"With market testing new highs, emergence of geopolitical tensions could force people to book some profits.

Crude prices could turn volatile due to risk of possible retaliation from Iran which could impact the performance in the short-term," said Vinod Nair, Head of Research, Geojit Financial Services.

BSE power, auto, bankex, finance, metal, utilities and basic materials indices skidded up to 1.20 per cent, while IT, teck and healthcare rose up to 1.52 per cent.

Broader BSE Midcap index settled 0.45 per cent lower, while the smallcap gauge closed in the green.