Mumbai, March 2 Benchmark equity indices Sensex and Nifty plunged in early trading 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 percent to 78,543.73 in the early trading session. The 50-share NSE Nifty tumbled by 533.55 points or 2.11 percent to 24,645.10.
From the Sensex pack, InterGlobe Aviation, Larsen & Toubro, Eternal, Adani Ports, Asian Paints, UltraTech Cement, and Reliance Industries were among the biggest losers.
Bharat Electronics emerged as the only gainer.
Brent crude, the global oil benchmark, fell by 5.38 percent to USD 76.79 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 were 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 West Asia will significantly impact the market in the near term. The major risk from a market perspective is the energy risk arising from the surge in crude oil prices," 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 percent to settle at 81,287.19. The Nifty tumbled by 317.90 points or 1.25 percent to end at 25,178.65.
