MUMBAI: Stock market benchmark indices Sensex and Nifty tumbled in early trade on Monday, tracking a sharp decline in global equities and a fresh spike in crude oil prices, amid simmering tensions in West Asia.
The 30-share BSE Sensex tumbled 724.95 points to 73,518.39 in early deals. The 50-share NSE Nifty dropped 222.45 points to 23,138.60.
From the 30-Sensex firms, Mahindra & Mahindra, Tata Consultancy Services, InterGlobe Aviation, Trent, Bajaj Finance and Eternal were among the biggest laggards.
Power Grid, Sun Pharma, State Bank of India and Axis Bank were the winners.
Brent crude, the global oil benchmark, traded 3.51 per cent higher at USD 96.36 per barrel.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index traded significantly lower.
US markets ended sharply lower on Friday.
The Nasdaq Composite tanked 4.18 per cent, while the S&P 500 dropped 2.64 per cent and Dow Jones Industrial Average declined 1.35 per cent.
"There are strong headwinds for the market as trading begins for the week.
The sharp cut of 4.18 per cent in Nasdaq last Friday has rattled global markets with tech dominated South Korea and Taiwan facing a big sell-off.
"The escalation of conflict in West Asia, with Iran firing missiles at Israel in retaliation to Israel's aggression in Lebanon, has hardened crude prices," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
US President Donald Trump has asked Israel Prime Minister Benjamin Netanyahu not to retaliate to Iran's latest barrage of missiles, saying it would jeopardise the ongoing negotiations for a peace deal to end the over three-month long conflict.
US media outlet Axios reported that after Iran launched missiles at Israel on Sunday, Trump spoke to Netanyahu in a bid to prevent fresh tensions between the two nations from derailing the peace deal.
Trump also asked Iran to return to the negotiating table.
Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,776.25 crore on Friday, according to exchange data.
"The biggest concern this morning is the unwinding of the global AI-led rally.
Asian equities witnessed significant selling pressure, with South Korea's technology-heavy Kospi plunging nearly 8 per cent, triggering a temporary trading halt and extending its correction from recent record highs.
"Japan's Nikkei also opened sharply lower, reflecting a broad risk-off mood across the region," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
Adding to investor nervousness, renewed geopolitical tensions in the Middle East have pushed crude oil prices and the US dollar higher, he added.
On Friday, the Sensex declined 116.67 points, or 0.16 per cent, to settle at 74,243.34. The Nifty dipped 49.85 points, or 0.21 per cent, to end at 23,366.70.