Stock market today: Domestic benchmark indices slumped on Friday (April 19). Last seen, S&P BSE Sensex was down 0.74 per cent or 533.48 points at 71,955.51 and NSE Nifty slipped 0.73 per cent or 161 points at 21,834.85. The broader market indices Nifty Midcap 100 and Smallcap 100 also traded lower and the high-beta Nifty Bank too declined 0.96 per cent at 46,615.3. 

Here's what is dragging the indices: 

1. Escalating tensions in the Middle East 

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As per a report by Reuters, Israel has attacked Iran, three people familiar with the matter said, as Iranian state media reported early on Friday that its forces had destroyed drones, days after Iran launched a retaliatory drone strike on Israel.

"Reports of the feared escalation of the Iran-Israel tensions have spooked the market," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Dr. V K Vijayakumar added investors may wait for clarity to emerge on the geopolitical front. Uncertainty is very high. 

2.Q4 results 

HDFC Life Insurance, Infosys, and Bajaj Auto reported their quarter-ended March 31 results on Thursday and were among the top losers in Nifty50. As per Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, Wall Street experienced volatile trading on Thursday, driven by corporate earnings. 

"With Infosys’ ADR shares dropping two per cent, Nifty faces downward pressure," Tapse added.

3. Weakness in international markets 

"Distinct weakness in Asian markets and sharp cuts in US futures reflect heightened nervousness in equity markets," said Dr. V K Vijayakumar.

MSCI's broadest index of Asia-Pacific shares dived 2.3 per cent and U.S. stock futures pointed 1.5 per cent lower. 

4. Delay in rate cuts weighs sentiment

According to a report by Bloomberg, the Federal Reserve needs to achieve more confidence that inflation is declining before cutting interest rates and could possibly delay such a move until after 2024, said Minneapolis Fed President Neel Kashkari. 

5. FII sell-off 

As per Dr. V K Vijayakumar, the sharp spike in US bond yields triggered big Foreign Institutional Investors (FII) sales which touched Rs 4,260 crore on Thursday. More FII selling can be expected in the near term putting pressure on large-caps.

6. Technical Factors

"Escalated geopolitical tensions will continue to hamper the market sentiment, as seen in the early indications from GIFT Nifty. Now, the immediate support is placed at 21,700 while the psychological level of 22,000 will be considered a strong hurdle on the higher side. All the sectors are likely to witness varied corrections in today's trade which will offer good opportunities to Investors to add sound quality stocks," said Aditya Gaggar, Director of Progressive Shares.

"With Nifty poised to slip below 21800 today, the trade would be about when to pick a turnaround. Given the viciousness of yesterday’s turn lower, the 20300 move discussed early in the week is well underway, and we prefer to ride the downside momentum initially, until 21500, which is from where we expect the bargain hunting to resume. Else, expect 21200. The upside marker is at 22150," said Anand James, Chief Market Strategist, Geojit Financial Services.

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