Mumbai: Stock market benchmark indices Sensex and Nifty tumbled over one per cent each on Friday as tensions soared between India and Pakistan, fuelling fears of a wider conflict. Besides, steep losses in realty, financial and utility stocks also dented investor sentiments, traders said.

Extending its previous day’s decline, the 30-share BSE benchmark gauge tanked 880.34 points or 1.10 per cent to settle at 79,454.47, in a largely range-bound trading. As many as 2,522 stocks declined, while 1,343 advanced and 145 remained unchanged on the BSE. The NSE Nifty dropped 265.80 points or 1.10 per cent to 24,008 points. The market capitalization (mcap) fell by Rs7 lakh cr to Rs416.40 lakh cr or $4.86 trn in 2 days.

“A conflict was anticipated, but the market was not expecting the situation to intensify, raising concerns about its duration. However, it is still projected to be a short-lived confrontation, given the strategic advantage and the opponent’s weak economic standing. Interestingly, FIIs continued to invest in the Indian market until Thursday, while retail investors remain slightly cautious at the moment,” said Vinod Nair, head (research), Geojit Investments Ltd.

The BSE smallcap gauge declined 0.30 per cent, and the midcap index dipped 0.10 per cent.

“Markets came under pressure as geopolitical tensions between India and Pakistan intensified. Defence-related stocks like Bharat Electronics and Hindustan Aeronautics outperformed, gaining on expectations of increased defence spending. Looking ahead, elevated geopolitical risks have significantly heightened market volatility, as reflected in the surge of the India VIX. Investors are advised to adopt a stock-specific approach and refrain from taking aggressive positions until there is more clarity,” added Ajit Mishra, Sr V-P (research), Religare Broking Ltd.

On the weekly front, the BSE benchmark dropped 1,047.52 points or 1.30 per cent, and the Nifty declined 338.7 points or 1.39 per cent.

“Benchmark indices extended their downward trajectory for the second consecutive session on May 9, as heightened geopolitical tensions overshadowed otherwise constructive global cues. On a weekly basis, both the Sensex and Nifty posted losses exceeding 1 per cent, reflecting broader risk-off sentiment,” according to Bajaj Broking Research.