BSE Sensex is trading at 72,099 points, down 389 points on Friday as domestic equities continued their losing spree amid escalation in Middle East tensions. Tata Motors, Axis Bank are down more than 2 per cent.
V. K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services said distinct weakness in Asian markets and sharp cuts in US futures reflect heightened nervousness in equity markets.
"There are headwinds from the bond markets, too. The sharp spike in US bond yields triggered big Foreign Institutional Investors (FII) selling which touched Rs 4,260 crore on Thursday. More FII selling can be expected in the near-term putting pressure on largecaps," he said.
"Investors may wait for clarity to emerge on the geopolitical front. Uncertainty is very high," he added.
Deepak Jasani, Head of Retail Research, HDFC Securities said Asian shares sank on Friday while the dollar, yen, oil and gold surged after reports of a sharp escalation in Middle East hostilities.
Vaishali Parekh, Vice President-Technical, Research, Prabhudas Lilladher said Nifty has indicated a big bearish candle to end below the 22,000 zone with bias and sentiment turning very cautious with the threat of the trend turning bearish.
(With inputs from IANS)
