Mumbai, March 2 The benchmark indices in the Indian stock market, Sensex and Nifty, continued to trade with significant losses during the afternoon session on Monday, tracking a sharp increase in crude oil prices amid escalating tensions in the Middle East.
The 30-share BSE Sensex fell by 2,743.46 points or 3.37%, closing at 78,543.73 in the early trading. It later traded 1,633.23 points or 2.01% lower at 79,653.96 during the afternoon session.
The 50-share NSE Nifty tumbled by 533.55 points or 2.11%, closing at 24,645.10 in the initial trading. The benchmark later quoted 505.35 points or 2.01% lower at 24,674.75.
From the Sensex pack, Larsen & Toubro, Adani Ports, InterGlobe Aviation, Maruti, Asian Paints, and Reliance Industries were among the biggest losers.
Bharat Electronics and Sun Pharma were the only gainers.
Brent crude, the global oil benchmark, jumped by 9.43% to $79.74 per barrel.
Iran's Supreme Leader Ayatollah Ali Khamenei was killed in a coordinated US-Israeli airstrike on Tehran early Saturday, with Iranian state media confirming his death on Sunday.
Iran began firing missiles at Israel and Arab countries in the region in retaliation for the killing of its Supreme Leader.
In Asian markets, Japan's Nikkei 225 and Hong Kong's Hang Seng index quoted lower, while Shanghai's SSE Composite index traded in positive territory.
The US market ended lower on Friday.
"The uncertainty related to the conflict in the Middle East will continue to weigh on the market in the near term. The major risk from a market perspective is the energy risk arising from the surge in crude," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 7,536.36 crore on Friday, according to exchange data. Domestic Institutional Investors (DIIs) however, bought stocks worth Rs 12,292.81 crore.
"For investors, the risk extends beyond energy. Prolonged regional instability could disrupt trade routes, strain supply chains, and tighten global financial conditions if inflation expectations re-accelerate," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
On Friday, the Sensex fell by 961.42 points or 1.17%, closing at 81,287.19. The Nifty tumbled by 317.90 points or 1.25%, closing at 25,178.65.
