The benchmark equity indices fell sharply on Friday, with the Sensex and Nifty declining nearly 1 percent, tracking weak global cues and a spike in crude oil prices following Israel’s strikes on Iran.

Falling for the second day in a row, the Sensex dived 573.38 points or 0.7 percent to settle at 81,118.60. During the morning trade, it tanked 1,337.39 points or 1.63 percent to 80,354.59. The Nifty dropped 169.60 points or 0.68 percent to 24,718.60.

The broader indices outperformed with BSE mid and smallcap indices down 0.3 percent each. For the week, BSE Sensex fell 1.3 percent and Nifty shed 1 percent.

Kotak Mahindra Bank, Power Grid, Adani Ports, Tata Motors, UltraTech Cement and Asian Paints were among the major laggards in early deals.

 Israeli strikes on Iran early Friday targeted nuclear-linked facilities, escalating fears of a broader conflict in the region. The attacks, among the most significant Iran has faced in decades, hit multiple sites including a main nuclear enrichment facility. Iran’s Supreme Leader Ayatollah Ali Khamenei warned of “severe punishment” against Israel, raising the threat of further retaliation.

Brent crude jumped 9.33 percent to USD 75.83 a barrel after reports of Israel’s strikes. The development sparked fears of supply disruptions from the oil-rich Middle East. With India importing more than 85 percent of its oil requirements, the sharp rise in crude prices poses risks to the trade deficit and could pressure the rupee further.

Meanwhile, retail inflation easing to 75-month low of 2.82% could provide some relief to stocks.

The biggest Nifty losers were Adani Ports, ITC, SBI, IndusInd Bank, Hindalco Industries, while gainers included Bharat Electronics, ONGC, Tech Mahindra, TCS, Wipro.

Except media, all other sectoral indices ended in the red with FMCG, PSU Bank, oil & gas, power, telecom down 0.5-1 percent.

Canara Bank shares shed 3.5 percent on plans to raise Rs 9,500 crore via bonds, Kernex Microsystems shares jumped 5 percent on JV getting LoA worth Rs 311 crore, Talbros Automotive Components shares rose 2.5 percent on winning Rs 580 crore multi-year orders, Gensol Engineering shares hit 52-week low after NCLT admitted IREDA plea to start insolvency proceedings.

Crude-sensitive stocks remained under pressure as oil surged after Israel’s attack on Iran, while aviation stocks fell for a second day after Air India's Dreamliner Boeing 787-8 plane mishap in Ahmedabad on June 12. Defence stocks, however, witnessed buying interest, fuelling hopes of higher defence equipment orders amid heightened global uncertainties.

Nearly 80 stocks on the BSE touched their 52-week highs, including Narayana Hrudayalaya, Manappuram Finance, Max Healthcare, Muthoot Finance, AstraZeneca Pharma, JK Cement, among others.