The Indian market felt the heat of rising tensions between the United States and Iran which pushed prices of safe-haven assets higher and dragged riskier equities lower on January 3.
Major markets across the globe declined, global crude oil prices rose about 4 percent and gold and other safe-haven assets jumped as the US killing of a top Iranian commander in an airstrike in Iraq stoked tensions in West Asia.
The Sensex ended 162 points, or 0.39 percent, down at 41,464.61, while the NSE benchmark Nifty settled with a loss of 56 points, or 0.45 percent, at 12,226.65.
For the week, both the Sensex and Nifty shed around 0.3 percent each. The Nifty Midcap Index is the only major index to end the week with gains of nearly 2 percent, while the volatility index, India VIX, recorded its best weekly gain since August 2019, up over 20 percent.