The domestic bourses were rattled on Friday as global equities took a knock and on fears that a flare-up in West Asia tensions could drive up global crude oil prices further.
The market hit a new 16 month low amid renewed tensions between Israel and the Palestinians. The BSE sensex was down by about 108.65 points while the S&P CNX Nifty was down by about 29.50 points. The BSE sensex closed at 3738.93 while the S&P CNX Nifty closed at 1176.75.
International crude oil prices soared to new 10-year highs of $ 35 per barrel. The Dow crashed 379 points and the Nasdaq by another 93 points overnight. The Nasdaq hit a new 10-month low of 3074.68.
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The bearish sentiment percolated to the Asian markets and the Nikkei closed 220.33 points lower at 15330.31 and the Hang Seng also ended the day lower at 14680.50 a fall of 394.30 points.
The markets were poised on the brink but was showing signs of having bottomed out on Friday.
However tensions broke out in WEst Asia after Israel retaliated for the killing of two of its soldiers by attacking Palestinian targets.
An explosion on a US warship in Yemen, feared to be a terrorist attack, further added to the already prevailing tense atmosphere.
The Dow and the Nasdaq went into a free fall after the opening bell and closed the day at the session lows.
Unit Trust of India chairman P S Subramanyam attributed the crash to external factors like shooting oil prices and tension in West Asia.