Mumbai, March 12 Benchmark indices Sensex and Nifty traded lower during the afternoon session on Thursday amid soaring crude oil prices due to the worsening crisis in West Asia.
Besides, weak global market trends and continued foreign fund outflows also dampened investor sentiment, analysts said.
The 30-share BSE Sensex plunged by 992.53 points or 1.29 per cent to 75,871.18 in early trade. The 50-share NSE Nifty fell by 310.55 points or 1.30 per cent to 23,556.30.
Later, the BSE benchmark index quoted a decline of 432.04 points or 0.56 per cent at 76,459.62. The Nifty traded with a drop of 129.70 points or 0.50 per cent at 23,745.55.
Among the 30 companies in the Sensex, Mahindra & Mahindra, Maruti, Trent, UltraTech Cement, InterGlobe Aviation, and Bajaj Finance were among the biggest decliners.
NTPC, Power Grid, Reliance Industries, and Tech Mahindra were among the gainers.
Brent crude, the global oil benchmark, jumped by 8.98 per cent to USD 100.24 per barrel.
"Indian equity markets opened with a sharp decline, reflecting heightened global uncertainty and increasing risk aversion among investors.
"The immediate trigger behind the decline is the sharp surge in crude oil prices, with Brent crude approaching the USD 100 per barrel mark following escalating geopolitical tensions involving the US, Israel, and Iran in West Asia," Ponmudi R, CEO of Enrich Money, said.
Several Asian markets, including Japan's Nikkei and South Korea's Kospi, traded sharply lower as investors shifted towards a risk-off stance amid geopolitical uncertainty, he noted.
"Another key factor weighing on sentiment is the persistent selling by FIIs," Ponmudi added.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index were trading lower.
The US market ended mostly lower on Wednesday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,267.31 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DII) bought stocks worth Rs 4,965.53 crore.
On Wednesday, the Sensex tumbled by 1,342.27 points or 1.72 per cent to settle at 76,863.71. The Nifty tanked by 394.75 points or 1.63 per cent to end at 23,866.85.
