Indian stock market saw a plunge of nearly 1 per cent, with Sensex tumbling over 700 points and Nifty down by over 200 points.
The 30-share BSE Sensex tumbled 702.68 points or 0.91 per cent to settle at 76,847.57. The 50-share NSE Nifty plunged 207.95 points or 0.86 per cent to end at 23,842.65.
Among the Sensex firms, Maruti, InterGlobe Aviation, Bajaj Finance, Reliance Industries, Tata Consultancy Services and HDFC Bank were the biggest laggards.ICICI Bank, NTPC and Axis Bank were the gainers.
Why did the market crash today?
The dip in the stock market indices can be attributed to the failed US-Iran peace talks.
The historic 21-hour US-Iran peace deal saw both the sides attempting to hold each other responsible for the collapse of the negotiations, leaving the fate of the ceasefire in doubt.
"Markets continue to derive limited support from last week's ceasefire framework, which remains intact for now and is encouraging selective buying interest along with a buy-on-dips approach. This comes despite an initial negative reaction to the breakdown of USIran peace talks and the announcement of a US naval blockade in the Strait of Hormuz, which pushed crude prices above USD 100/bbl," Vinod Nair, Head of Research, Geojit Investments Limited, said to PTI.
Reflecting the market sentiments, the Indian rupee dropped 0.7 per cent versus the U.S. dollar to 93.38. Brent crude, the global oil benchmark, jumped 7.73 per cent to USD 102.6 per barrel.
Apart from the failed peace talks, rise in oil prices, concerns around inflation, currency stability issues weighed in on the over market behaviour today.
Foreign Institutional Investors (FIIs) turned buyers on Friday, buying stocks worth Rs 672.09 crore, according to exchange data.