Mumbai, April 7 The benchmark indices, Sensex and Nifty, declined in early trading on Tuesday as surging crude oil prices, coupled with growing uncertainty about the outcome of the war in West Asia, dampened investor sentiment.
Unabated outflows of foreign funds also contributed to the negative trend.
The 30-share BSE Sensex plunged by 824.44 points to 73,282.41 in early trading. The 50-share NSE Nifty dropped by 248.95 points to 22,719.30.
Among the 30 companies in the Sensex, InterGlobe Aviation, Eternal, Axis Bank, Mahindra & Mahindra, State Bank of India, and Larsen & Toubro were the worst performers.
Tech Mahindra, HCL Tech, Bajaj Finance, and Tata Consultancy Services were among the gainers.
Brent crude, the global benchmark for oil, rose by 1.48 per cent to $111.4 per barrel.
According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 8,167.17 crore on Monday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 8,088.70 crore.
In Asian markets, South Korea's benchmark Kospi and Shanghai's Composite index traded higher, while Japan's Nikkei 225 index declined. Markets were closed in Hong Kong for a holiday.
"The mixed messaging from US leadership and the absence of a concrete ceasefire framework continue to keep uncertainty high. Iran's rejection of the US proposal and its counter-conditions suggest that negotiations remain fluid, keeping geopolitical risk firmly in play," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
US markets ended higher on Monday.
On Monday, the Sensex jumped by 787.30 points or 1.07 per cent to settle at 74,106.85. The Nifty edged higher by 255.15 points or 1.12 per cent to end at 22,968.25.