Indian stocks close week's trading in red amid West Asia conflict; Sensex slips over 1,000 points

New Delhi [India], March 6 (ANI): After a rebound the previous session, Indian stock indices traded again in the red on Friday, ending the week on a weak note amid tensions in West Asia.
Sensex closed at 78,918.90 points, down 1,097.00 points or 1.37 per cent, while Nifty closed at 24,450.45 points, down 315.45 points or 1.27 per cent.
Equity benchmarks had ended a three-day losing streak on Thursday as the BSE Sensex and Nifty 50 recovered slightly.
Escalating geopolitical tensions in West Asia that have invariably weighed down financial markets worldwide through this week.
"Investor sentiment remained guarded amid lingering geopolitical uncertainties and elevated crude oil prices, which continue to influence global risk appetite. Participants also stayed selective ahead of the weekend, preferring to trim positions following the sharp swings witnessed earlier in the week," said Ajit Mishra - SVP, Research, Religare Broking Ltd.
Vinod Nair, Head of Research, Geojit Investments Limited echoed that Indian equity markets extended their decline following the prior session's relief rally, as escalating US-Iran tensions disrupted key West Asia oil and gas supplies, driving crude prices higher.
"A sustained rise in oil prices could weigh on investor sentiment and adversely affect India's twin deficits, inflation trajectory, and the RBI's monetary stance...While geopolitical tensions remain a near-term overhang, selective value-buying opportunities are expected to emerge, offering long-term investors attractive entry points," Nair added.
Market volatility also increased sharply, with India VIX rising more than 11 per cent from the previous close, reflecting growing nervousness among investors and a clear shift toward risk-averse positioning.
"Indian equity markets ended the session on a bearish note, with investors maintaining a cautious stance amid intensifying geopolitical tensions in the Middle East. Escalating rhetoric from the United States over intensifying attacks and potential leadership changes in Iran, alongside Tehran's retaliatory actions across parts of the Middle East hosting U.S. military bases, has added a new layer of complexity to the geopolitical landscape. The heightened uncertainty and rising headline risk kept market participants defensive, resulting in subdued risk appetite throughout the session," Ponmudi R, CEO of Enrich Money, a SEBI - registered online trading and wealth tech firm. (ANI)