The Sensex and Nifty 50 extended losses on Monday, April 13, ending about 1 percent lower amid global uncertainty. The Sensex dropped 703 points, or 0.91 percent, to close at 76,847.57, while the Nifty 50 declined 208 points, or 0.86 percent, to settle at 23,842.65.
Broader markets showed relative resilience. The Nifty Midcap 100 fell 0.57 percent, while the Nifty Smallcap 100 slipped 0.46 percent.
Investors lost nearly ₹2 lakh-crore in a single session, with total market capitalisation of BSE-listed firms falling to ₹449 lakh-crore from ₹451 lakh-crore.
Ceasefire talks between the US and Iran over the weekend ended without a deal, dashing hopes of easing tensions in West Asia. Adding to concerns, the US move to blockade the Strait of Hormuz has raised fears of a disruption in global energy supplies.
Markets are worried that a prolonged conflict could hurt global growth and weigh on equities through 2026.
US President Donald Trump has revived tariff threats against China. He warned of a 50 percent tariff if Beijing supplies weapons to Iran, escalating global trade tensions and unsettling investor sentiment.
Crude prices surged sharply after the failed talks. Brent Crude climbed above $103 per barrel, while West Texas Intermediate rose to around $105.
Sustained high oil prices are a major concern for India, as they can fuel inflation and slow economic growth.
Asian markets remained under pressure, with indices in Japan and South Korea falling around 1 percent. European markets were also trading lower when Indian markets closed, reflecting widespread risk aversion.
Heightened geopolitical uncertainty continues to keep global sentiment fragile.
The rupee weakened sharply, falling 65 paise to 93.38 against the dollar, compared with 92.73 in the previous session.
A stronger dollar and rising oil prices could trigger foreign capital outflows, further weighing on the domestic market.
(By arrangement with livemint.com)