New Delhi: Equity benchmark indices Sensex and Nifty tumbled in early trade on Monday as the failure of US–Iran negotiations heightened concerns of a prolonged conflict driving crude oil prices sharply higher.
The US and Iran failed to reach a peace deal at their historic 21-hour talks in Pakistan, leaving the fate of a tenuous two-week ceasefire in doubt, with both sides attempting to hold each other responsible for the collapse of the negotiations.
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The 30-share BSE Sensex tumbled 1,613.09 points to 75,937.16 in early trade. The 50-share NSE Nifty plunged 495 points to 23,555.60.
All the 30-Sensex firms were trading lower during the initial trade. Titan, Sun Pharma, NTPC, Bharat Electronics, Power Grid and Bharti Airtel were the biggest laggards.
Brent crude, the global oil benchmark, jumped 7.33 percent to USD 102.2 per barrel.
"With the failure of US-Iran peace talks and Trump's declaration of US naval blockade in the Strait of Hormuz, uncertainty and along with it crude price have spiked. Brent at USD 103 is emerging as yet another threat to the economy and markets," V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were trading lower.
US markets ended on a mixed note on Friday.
"The failure of US–Iran negotiations over the weekend has heightened concerns of a prolonged conflict, further intensified by reports of a US naval blockade on Iranian ports," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
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This development has triggered a clear risk-off sentiment across global markets, he added.
Foreign Institutional Investors (FIIs) turned buyers on Friday as they bought stocks worth Rs 672.09 crore, according to exchange data.
On Friday, the Sensex jumped 918.60 points or 1.20 percent to settle at 77,550.25. The Nifty climbed 275.50 points or 1.16 percent to end at 24,050.60.
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