Highlights: Devastating bloodbath on Friday the 13th: Sensex, Nifty end down 2%, small and midcaps bleed and metals sell-off

Indian markets felt the jolt of risen crude oil prices and geopolitical tensions in West Asia. The Nifty 50 closed the session 488 points or 2.06% lower at 23,151, while the BSE Sensex settled the session 1,470.50 points or 1.93% lower at 74,564.

The Indian rupee ended Friday's trade at yet another low. The currency which started on a weak note slumped down to an all time low of 92.46 against the US Dollar. The declines in the currency come over soaring rise in oil and energy prices coupled with an outflow of equities from the domestic markets.

Analysts cited by Reuters have warned that the prolonged Middle East conflict could worsen the currency's outlook as it may reach beyond the 95 mark against the dollar. The weakness comes over persistently high energy prices.

The US equities are trading in the red territory too led by a surge in oil and energy prices. US Benchmark of oil, West Texas Intermediate is currently trading near the $95 per barrel mark.

The Dow Jones Industrial Average ended yesterday's trade down 1.56%, while the S&P 500 too closed in the red territory down 1.52%. Nasdaq Composite closed on Thursday in red falling 1.78%

The Nifty Auto index is extending steep declines, falling 3.64% or 921.9 points at 24,173.60. Auto stocks extended their decline for a third straight session on Friday, dragged by concerns over a spike in crude oil prices and disruptions in liquefied natural gas supplies amid escalating geopolitical tensions. 

Force Motors 4.61%, Tata Motors Passenger Vehicles 4.58%, Ashok Leyland 4.26%, BEML 4.20%, Sanghvi Movers and Atul Auto 3.98% each, Escorts Kubota 3.87%, Hero MotoCorp 3.62%, TVS Motor Company 3.57%.

Read More: Stocks making the biggest moves midday- Hindalco, Tata Motors PV, Adani Energy, ACME and more

The Nifty 50 has nosedived 2% intra-day, and the Sensex has crashed over 1,400 points. Not just the benchmark, the broader market is feeling the heat too. The small and midcap Indices are down over 2% each, and the metal space is bleeding like there is no tomorrow.

Read More: Nifty, Sensex slide over 10% from January highs: Why the Hormuz Crisis and $20 oil spike are spooking markets

"The Nifty index has been falling amid crude oil supply concerns sparked by the ongoing Middle East conflict. It has now reached immediate price support around the 23,200 level, as discussed in the morning note. Looking ahead, we anticipate a pause around the 23,000–23,200 zone," said Vipin Kumar, Assistant Vice President of Technical Research at Globe Capital.

The dollar index strengthened towards more than three month record high level of 100.2. The dollar index gauges the strength of the greenback against a basket of six major currencies. The climb for the dollar index comes over its safe-haven appeal.

The euro fell to its lowest level since November, Reuters reported. Meanwhile, Japan's finance minister has warned that high oil are hitting markets and has signalled that authorities are ready to act if the economic instability continues.

Global supply disruptions, port expansion plans and steady project pipelines have prompted Motilal Oswal to reiterate ‘Buy’ calls on several companies across energy, logistics and water infrastructure. The brokerage believes these businesses have strong earnings visibility over the next few years, supported by sector tailwinds and company-specific expansion plans.

Read More: 3 ‘Buy’ recommendations by Motilal Oswal with upto 48% upside potential

India's volatility index, India VIX, jumped 5.6% to a high of 22.88 level today as markets see sharp cuts. India VIX is trading near its 52-week high of 24.50. The Nifty 50 and Sensex corrected more than 2%, each. The jump in oil prices has rattled the investors, globally.

Crude oil prices surged, with WTI rising above $97 a barrel and Brent approaching $102 per barrel, driven by escalating geopolitical tensions in West Asia and concerns over prolonged supply disruptions through the Strait of Hormuz. The rally followed the first public remarks by Mojtaba Khamenei since assuming the position of Iran’s supreme leader, who reiterated that keeping the Strait of Hormuz closed should remain a strategic tool to pressure the United States and Israel.

"Oil prices slipped below $95 per barrel earlier today as the US government issued a 30-day waiver allowing countries to purchase Russian oil and petroleum products currently stranded at sea, while persistent uncertainty over the length of the conflict and the timeline for normal flows through the Strait of Hormuz lifted prices back to $96 per barrel," said Kaynat Chainwala, AVP of Commodity Research at Kotak Securities.

Nifty Bank was down nearly 1,251 points or 2.27% at 53,851. The whole index was trading in red, with PNB taking the worst hit as its stock fell by nearly 4%. The share price of Canara Bank was also down by more than 3%.

Shares of Kotak Mahindra was down by more than 2%, while HDFC Bank and ICICI Bank stock declined by over 1%.

Heavyweights were mostly down in Nifty 50, as share price of L&T was declined by a whooping 6%. Shares of HDFC Bank, ICICI Bank, ITC was down by more than 1%, while Reliance Industries was down nearly 1%.

Meanwhile, stock of Bharti airtel was trading flat.

Japan's Nikkei closed lower on Friday and posted a second consecutive weekly decline of 3.2%, as escalating tensions in the Middle East fuelled inflation concerns and prompted investors to dump riskier assets.

Japanese stock markets have also taken a hit, as the Nikkei extended second consecutive weekly decline of 3.2%, Reuters reported. On Friday, the index was down 1.16% and closed at 53,819.61 shedding 633.35 points. Technology shares led the decline.

Share prices of Honda Motors was down by more than 5%, while SoftBank Group declined 4.5% and chip-testing equipment maker Advantest down 3.5%.

The fall in indices is also visible in Middle Eastern markets, as the UAE stock markets fell by 1% in early trade. The major cue for the decline is Iran's attacks on Middle East.

Dubai's main share index fell 1% ⁠with most of ⁠its constituents in negative territory, led by losses in financial and real estate stocks. ⁠Blue-chip ‌developer Emaar Properties slid 1.7%, while top ​lender Emirates NBD dropped 4%, Reuters reported.

In Abu Dhabi, the stock ‌index ⁠slipped 1.4% with broad-based declines. First Abu Dhabi Bank, the UAE's largest lender, fell 3.8%, ​while Aldar Properties lost 2.5%, the news agency added.

For the afternoon trade, the domestic indices are witnessing a bloodbath as the Nifty 50 has plunged over 1.8% to close to 23,200 levels. The Sensex has shed over 1,200 points now. The metal counters are among the big losers in trade today.

The Nifty Metal Index is down by nearly 4.4% at 11,346.

Amid the market bloodbath in the afternoon trade, global brokerage firm Jeffries has refreshed its stock ideas for March, adding 7 companies to its list of preferred ‘Buy’ calls while maintaining a cautious stance on several others.

The latest review includes 23 ‘Buy’ recommendations and eight stocks are marked ‘Underperform’ across Jefferies’ coverage universe of 247 companies, according to a strategy note released on March 12.

Read More: SBI, JSW Steel, and Groww: Jefferies adds 7 stocks to ‘Buy’ list with up to 44% upside potential 

The Nifty Metals Index tumbled over 4% to a low of 11,353.05. It saw the maximum loss among sectoral indices today. Key shares like NALCO have nosedived nearly 7%. Hindalco too has plunged as much as 5% today.  

Jindal Steel, Lloyd Metals and Energy, Steel Authority of India, Hindustan Zinc, Tata Steel, and many others followed suit. All the constituents of the Nifty Metal Index are trading in the red. The catalysts triggering the sharp sell–off are the escalation of the West Asia crisis. Crude oil and energy prices surged amid buzz that Iran could potentially shut the Strait of Hormuz

Read more: NALCO, Hindalco, and Tata Steel plunge: Why the Hormuz crisis just wiped 4% off metal stocks

As of intra-day trade, the Nifty 50 index is down to 23,333.35, declining 305.80 points or 1.29%. Of the 50 companies, 44 extended declines while 6 advanced, with the share price of Hindustan Unilever up over 2%.

As of now, shares of Hindalco Industries and Larsen & Toubro are down by more than 4%.

The Indian rupee plummeted to new record lows yet again as the currency was trading at the 92.39 level against the US Dollar. The currency opened at a weak note of 92.34 against the greenback and has been nosediving in today's trade. Traders cited by Reuters said that RBI is likely selling dollars to help cushion the currency's fall over oil worries.

"Since the conflict began, currencies of major energy-importing countries have weakened against the dollar. The rupee has already fallen by more than 1% during this period, reflecting the higher cost of energy imports and the increased demand for dollars to pay for them, " said analyst at CR Forex Advisors

"Given the ongoing global uncertainties and heightened market volatility, investors are advised to remain disciplined and selective. Initiating fresh long positions may be considered only after the Nifty decisively breaks and sustains above the 25,000 level, as such a move would signal improving market sentiment and the potential formation of a stronger bullish trend," said Hitesh Tailor, Research Analyst at Choice Equity Broking.

On the sectoral front, Nifty Metal index is emerging as the top loser with the index down by more than 4%. Except for the Nifty FMGC index, all the indices are currently in the red category.

The fall in metal prices comes over record high levels of the dollar index and soaring oil and energy prices. On MCX, the April delivery contract of gold is trading flat at Rs 1,60,104 per 10 grams, while silver is also flat at Rs 2,67,910 per kg.

The swing higher from the 23,500s failed to push above 23,820 yesterday. Nifty is poised to continue the slide, aiming 23,090 with minor support seen in the 23,370-3,20 region. "For reversal chances, we will watch the consolidation near 23,460, but will wait for a break past 23670 to confirm the upside," said Anand James, Chief Market Strategist at Geojit Investments.

US Dollar Index is currently trading near its three month high levels, marking a strength for the US dollar against a basket of six major currencies.

This cue likely triggered the loss for India's Nifty 50 index which fell by nearly 1%. The Nifty Metal Index also is down by over 2%.

Speaking on the sharp surge in crude prices and its impact, Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments said that, "With the heightened uncertainty surrounding the West Asian conflict continuing, globally markets are weak and in unchartered territory. Weakness in the US markets indicate that rebound in the market is some time away. With Brent crude around $100, bulls are on the defensive. With the FIIs persisting with their sustained selling strategy, even largecap bluechips are under pressure."

"We reiterate our sell on rise trading approach on the Nifty index and expect it to test 23,400-23,200 levels in the near term. Short-term volatility is expected to remain higher amid the ongoing West Asia conflict, and any de-escalation attempt will provide respite," said Vipin Kumar, Assistant Vice President of Technical Research at Globe Capital.

The domestic equity markets opened Friday's trade on a lower note, continuing the losing streak. The Nifty 50 opened 154 points or 0.65% lower at 23,485, while the BSE Sensex dropped 513 points or 0.67% to open at 75,522.

The Bank Nifty opened 470 points or 0.85% lower at 54,631, while the Nifty Midcap 100 declined 291 points or 0.52% to open at 55,963.

"With the heightened uncertainty surrounding the West Asian conflict continuing, global markets are weak and in uncharted territory. Weakness in the US markets indicates that a rebound in the market is some time away. With Brent crude around $100, bulls are on the defensive. With the FIIs persisting with their sustained selling strategy, even largecap blue-chips are under pressure," said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.

The GIFT Nifty implies that the markets will open at a lower note for a third straight session. The index was down 250 points or 1.06% at 23,471. This fall came after the global markets rattled on the back of rising crude oil prices, which touched a mark of $100 a barrel.