Benchmark indices Sensex and Nifty closed significantly lower on Monday, marking a sharp sell-off in global equities and a sudden surge in international crude oil prices triggered by intensifying geopolitical tensions in West Asia.
Marking its second consecutive day of losses, the 30-share BSE Sensex dropped 719.08 points, or 0.97 per cent, to finish the session at 73,524.26, after dropping as much as 924.4 points, or 1.24 per cent, to an intra-day low of 73,318.94.
The NSE Nifty didn't escape the pressure either, closing down 243.70 points or 1.04 per cent at 23,123 after hovering precariously close to the 23,000-mark at its lowest point of the day.
Among the Sensex constituents, Eternal, Mahindra & Mahindra, Trent, InterGlobe Aviation, Reliance Industries and Tata Consultancy Services were among the biggest laggards.
Power Grid, Tech Mahindra, Bharat Electronics and Bharti Airtel were among the winners.
Brent crude, the global oil benchmark, jumped 4.10 per cent to USD 96.91 per barrel.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng ended significantly lower. The Kospi plunged 8.29 per cent, while the Nikkei 225 index dropped 3.85 per cent.
Markets in Europe were trading in the negative territory.
US markets ended sharply lower on Friday. The Nasdaq Composite tanked 4.18 per cent, while the S&P 500 dropped 2.64 per cent and the Dow Jones Industrial Average declined 1.35 per cent.
Also read: Crude oil prices near $100 a barrel
"Global sentiment has weakened amid a flare-up of tensions in the Middle East, pushing crude towards USD 100/bbl. Simultaneously, global technology stocks have witnessed a sell-off, as investors begin to question the sustainability of the AI-led rally. Selling pressure was also seen in semiconductor-heavy indices, showing early signs of valuation fatigue and positioning unwind, although it is premature to classify this as a trend reversal," Vinod Nair, Head of Research, Geojit Investments Limited, said.
Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,776.25 crore on Friday, according to exchange data.
"Global markets broadly traded in the red after Israel and Iran exchanged missile strikes for the first time since the ceasefire announcement, raising concerns that recent diplomatic progress could quickly unravel.
"The renewed escalation, which came despite calls for restraint from the United States, heightened fears of a prolonged regional conflict and a further disruption to global energy supplies," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
At the same time, signs of fatigue in the global AI and technology rally added to investor caution, he added.
On Friday, the Sensex declined 116.67 points, or 0.16 per cent, to settle at 74,243.34. The Nifty dipped 49.85 points, or 0.21 per cent, to end at 23,366.70.
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