Mumbai: Indian equity markets suffered a severe downturn on Friday as rising geopolitical tensions and renewed foreign fund outflows wiped out approximately 4.98 trillion rupees ($60 billion) in investor wealth.

The benchmark 30-share BSE Sensex plummeted 961.42 points, or 1.17%, to finish at 81,287.19. The index saw even deeper intraday losses, at one point sliding more than 1,000 points to hit a low of 81,159.15.

The sharp sell-off reduced the total market capitalisation of BSE-listed companies to 463.51 trillion rupees (approximately $5.10 trillion).

Global and Domestic Pressures

Market analysts attributed the slide to a "risk-off" environment driven by international instability. Vinod Nair, Head of Research at Geojit Investments Limited, noted that "Indian markets continued to consolidate amid weak global cues and rising geopolitical risks, with investor sentiment turning increasingly cautious."

Nair added that the lack of progress in US–Iran nuclear negotiations has fueled fears of a broader Middle East conflict, while "persistent AI-related uncertainty" has diverted capital toward safe-haven assets.

Domestically, the sentiment was further dampened as a lacklustre corporate earnings season concluded, leaving the market sensitive to global macroeconomic shifts.

Sectoral Performance

The bloodbath was widespread, with almost all sectoral indices ending in the red:

  • Real Estate: Dropped 2.25%
  • Telecommunications: Fell 1.83%
  • Automotive: Declined 1.81%
  • Financial Services: Slipped 1.50%

Among individual laggards, Sun Pharma, Bharti Airtel, Mahindra & Mahindra, and Bajaj Finserv were the hardest hit. Conversely, the Information Technology (IT) sector provided the only bright spot, with HCL Tech and Infosys managing to close in positive territory.

Broad Market Trends

The broader market reflected the pessimistic mood, as the BSE small-cap select index fell 0.84% and the mid-cap select index dipped 0.71%. "Investor sentiment weakened due to a combination of factors, including inconsistent foreign flows, weak global cues and lingering geopolitical tensions," said Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd.

On the BSE, 2,528 stocks registered declines, significantly outnumbering the 1,660 that advanced, while 181 shares remained unchanged.

With inputs from PTI