Mumbai, March 9 The benchmark indices, Sensex and Nifty, plunged by over 3% on Monday, as soaring crude oil prices and a weak trend in global equities due to the worsening situation in the Middle East dragged the stock markets sharply lower.
Furthermore, continued outflows of foreign funds also weighed heavily on investor sentiment.
The 30-share BSE Sensex fell by 2,494.35 points or 3.16%, closing at 76,424.55. The 50-share NSE Nifty tumbled by 752.65 points or 3.07%, closing at 23,697.80.
All 30 Sensex-listed companies traded in the red. State Bank of India, Mahindra & Mahindra, UltraTech Cement, Maruti, InterGlobe Aviation, and Adani Ports were among the major laggards.
Brent crude, the global oil benchmark, jumped by 17.06% to USD 108.5 per barrel.
"Brent crude has surged above $115, delivering a significant shock to economies and markets. Major oil importers like India will be severely affected if the conflict in West Asia persists and crude prices remain high," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
In Asian markets, South Korea's Kospi fell by over 6%, and Japan's Nikkei 225 dropped by nearly 5%. The SSE Composite index and the Hang Seng index in Hong Kong also declined.
The US market ended lower on Friday.
Foreign Institutional Investors (FIIs) sold equities worth Rs 6,030.38 crore on Friday, according to exchange data. Domestic Institutional Investors (DIIs) bought stocks worth Rs 6,971.51 crore in the previous trading session.
On Friday, the Sensex fell by 1,097 points or 1.37%, closing at 78,918.90. The Nifty dropped by 315.45 points or 1.27%, closing at 24,450.45.
Last week, the BSE benchmark declined by 2,368.29 points or 2.91%, and the Nifty fell by 728.2 points or 2.89%.
