A woman gestures at a securities trading house in Taipei on Monday. (AFP)

Mumbai, July 17: Indian markets were left gasping for breath today, caught in the maelstrom of violence in West Asia, an incendiary oil market and nervous global bourses that are themselves confronted by the pincer attack of Gulf politics and spiralling crude prices.

While the sensex nosedived 385 points today, the rupee tumbled to its 37-month closing low of 46.76 against the dollar.

Oil fell over a dollar on Monday in volatile trading as fighting raged between Israel and Lebanese Hizbollah guerrillas. The price fell sharply after Israel’s Channel 10 television cited a senior military official stating that Israel could end its Lebanon offensive within days.

Concern that the conflict could spill over to neighbouring countries and affect West Asian oil supplies earlier sent London Brent crude to a record high. Brent for September was down $1.31 at $76.27 a barrel by 1602 GMT, after touching a record $78.18 a barrel early in the session.

Most Asian markets went downhill today, unable to cope with the tensions of West Asia and the worries induced by sky-rocketing oil prices. In Hong Kong, shares fell for the third straight session with the Hang Seng index falling 70.89 points, or 0.4 per cent, to 16064.82. The story was repeated elsewhere in Asia from Bangkok, Manila to Shanghai. The markets were closed in Korea and Japan for a national holiday.

The sensex continued its losing streak for three consecutive sessions. In its biggest fall since June 13, the bellwether index fell 385 points, or 3.61 per cent, to end the day at 10293.22. It struck a fresh intra-day low of 10262.57, during late trading hours when selling intensified.

“Worries over oil prices are not as significant as those concerning the issues of Israel and other geo-political tensions as such issues may hover indefinitely,” said V.K. Sharma of Anagram Stockbroking.

“Both the sensex and Nifty have gone down below their key levels and, therefore, more weakness is expected,” he said.

The key technical support levels of sensex and Nifty were at 10440 and 3056 points, respectively. Nifty today lost 115 points, or 3.71 per cent, to end at 3007.55.

Weak Asian and US markets coupled with lack of buying support from foreign institutional investors and mutual funds further spoilt the game.

With today’s fall, the sensex has lost a sharp 637 points or 5.83 per cent in just three trading sessions from its close of 10930.09 on July 12.

“While the market has support at 9900 and lower at 9400, it could break these levels too. However, at lower levels, there should be some consolidation,” said Sharma.

“The markets will continue to be influenced by the global factors. Though the corporate earnings are expected to be good, it has been factored in the prices. Only better than expected results will bring about some upside in the markets,” said another analyst.

The rupee opened weak by more than 10 paise at 46.48 per dollar from last weekend’s close of 46.37 and was further pulled down by fresh negative developments, including a slowdown in FII inflows.