Equity benchmark indices Sensex and Nifty tumbled over 1 per cent on Friday, falling for the third consecutive day, as a sharp rally in crude prices and massive selling in IT counters weighed heavily on investors' sentiment.

Unabated foreign fund outflows, a negative trend in global markets amid prolonged conflict and continued disruption in the Strait of Hormuz added to the gloom.

The 30-share BSE Sensex dropped 999.79 points, or 1.29 per cent, to settle at 76,664.21. During the day, it plunged 1,260.13 points or 1.62 per cent to 76,403.87.

The wider gauge NSE Nifty slumped 275.10 points, or 1.14 per cent, to end at 23,897.95.

"Indian equity markets extended their decline for a third consecutive session, as renewed risk-off sentiment weighed on investor confidence. Ongoing tensions in the Middle East, coupled with persistent weakness in the IT sector, continued to pressure an already fragile market backdrop.

"Volatility also increased, with the India VIX rising 6 per cent, reflecting heightened fear and uncertainty amid the prolonged conflict and continued disruption in the Strait of Hormuz, with no meaningful signs of de-escalation," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

From the Sensex constituents, Infosys dived 7.09 per cent after its revenue growth forecast for FY27 came in lower than market expectations.

On the other hand, HCL Tech, Tata Consultancy Services, Tech Mahindra, Sun Pharma, Asian Paints and ICICI Bank were also among the major laggards.

Trent, Bajaj Finance, State Bank of India, HDFC Bank and Kotak Mahindra Bank were the winners.

Brent crude, the global oil benchmark, traded 2.17 per cent higher at USD 107.3 per barrel.

Foreign institutional investors (FIIs) offloaded equities worth Rs 3,254.71 crore on Thursday, according to exchange data.

In Asian markets, South Korea's benchmark Kospi and Shanghai's SSE Composite index ended lower, while Japan's Nikkei 225 and Hong Kong's Hang Seng settled higher.

Markets in Europe were trading lower in afternoon trade.

US markets ended lower on Thursday.

"The Indian equity market extended its profit-booking streak, pressured by heightening geopolitical tensions in West Asia, a sharp rally in crude oil prices, and a weakening rupee. IT stocks led the decline following disappointing quarterly earnings, while selling pressure was broad-based across sectors. FIIs returned to net selling again after a brief spell of inflows," Vinod Nair, Head of Research, Geojit Investments Limited, said.

On Thursday, the Sensex tumbled 852.49 points or 1.09 per cent to settle at 77,664. The Nifty dropped 205.05 points or 0.84 per cent to end at 24,173.05.