MUMBAI: Benchmark indices Sensex and Nifty tumbled in early trade on Monday amid surging crude oil prices, geopolitical uncertainties and a weak trend in Asian markets.
Foreign fund outflows also hit investors' sentiment during the initial trading.
The 30-share BSE Sensex tanked 730 points to 73,170.12 in early trade. The 50-share NSE Nifty dropped 231.50 points to 22,908.95.
All the 30 Sensex firms were trading lower. Bajaj Finance, Kotak Mahindra Bank, HDFC Bank, Bajaj Finserv, Hindustan Unilever, Mahindra & Mahindra, Larsen & Toubro and Bharat Electronics were the major laggards.
Brent crude, the global oil benchmark, traded 2.27 per cent higher at USD 106.7 per barrel.
"Indian equity markets are likely to remain cautious as renewed geopolitical uncertainty and a rebound in crude oil prices weigh on investor sentiment. The rejection by US President Donald Trump of Iran’s proposal to resolve the conflict and reopen the Strait of Hormuz has revived concerns over prolonged supply disruptions, making oil prices the dominant factor for global markets," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
In Asian markets, South Korea’s KOSPI, Japan's Nikkei 225 index, Shanghai's SSE Composite index traded lower, while Hong Kong's Hang Seng index quoted higher.
US markets ended in positive territory on Friday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,693.93 crore on Friday, according to exchange data.
On Friday, the Sensex climbed 315.20 points, or 0.43 per cent, to settle at 73,895.74. The Nifty was up 77.40 points, or 0.34 per cent, to end at 23,140.50.