Benchmark stock indices Sensex and Nifty fell for the fourth straight session on Monday due to selling in FMCG, financial and auto shares amid elevated crude oil prices and fresh turmoil in West Asia.
The 30-share BSE Sensex dropped 508.40 points, or 0.68 per cent, to settle at 74,267.34. During the day, it hit a high of 75,367.93 and a low of 74,203.68, gyrating 1,164.25 points.
Falling for the fourth consecutive day, the 50-share NSE Nifty edged lower by 165.15 points, or 0.70 per cent, to end at 23,382.60.
Among 30 Sensex firms, Hindustan Unilever, ITC, NTPC, Mahindra & Mahindra, Kotak Mahindra Bank and Bajaj Finance were among the major laggards.
Tech Mahindra, Infosys, Tata Consultancy Services, InterGlobe Aviation, HCL Tech and Tata Steel were the gainers.
Brent crude, the global oil benchmark, traded 3.34 per cent higher at USD 94.16 per barrel.
"Indian equity markets ended lower as renewed hostilities between the US and Iran reignited concerns over regional stability, with the conflict now entering its fourth month and the Strait of Hormuz remaining closed.
"The Nifty opened marginally higher but gradually came under sustained selling pressure as hopes of a near-term diplomatic breakthrough faded, reinforcing a cautious risk-off mood across markets," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
The United States on Monday said that it bombed radar and drone sites in Iran after Tehran shot down an American drone over the weekend. Iran then said it launched a strike of its own, and Kuwait reported incoming fire. The nominal ceasefire between Iran and the US has been repeatedly tested with such back-and-forth attacks, even as officials from both countries try to negotiate an end to the war.
"Recent US strikes and the escalation in cross-border hostilities between Israel and Lebanon have exerted selling pressure on equity markets, reflecting heightened geopolitical uncertainty and a shift towards risk-off sentiment. However, as the conflict has now entered its fourth month, participants are increasingly anticipating potential diplomatic progress in the near term," Vinod Nair, Head of Research, Geojit Investments Limited, said.
Broader markets also declined with the BSE MidCap Select index declining 1.44 per cent and BSE SmallCap Select index by 0.72 per cent.
Power dropped 2.90 per cent, followed by Capital Goods (2.44 per cent), Utilities (2.12 per cent), Industrials (2.11 per cent), Realty (2.03 per cent) and FMCG (2.02 per cent).
IT, Energy, Metal and Focused IT were the gainers.
A total of 2,761 stocks declined, while 1,589 advanced and 199 remained unchanged on the BSE.
In four days, the BSE benchmark has tumbled 2,221.62 points, or 2.90 per cent, and the Nifty tanked 649.1 points, or 2.70 per cent.
In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index and Hong Kong's Hang Seng index ended higher, while Shanghai's SSE Composite index settled lower.
Markets in Europe were trading higher. US markets ended in the positive territory on Friday.
On Friday, the Sensex tumbled 1,092.06 points, or 1.44 per cent, to settle at 74,775.74. The Nifty dived 359.40 points, or 1.50 per cent, to end at 23,547.75..
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 21,105.86 crore on Friday, according to exchange data.