Amid geopolitical tensions and global economic uncertainties, the Indian stock market closed in the red with a big fall on Monday, the first trading day of the week, due to rise in crude oil prices.
Meanwhile, heavy selling was seen in major benchmarks of the domestic market, with BSE Sensex falling 1,124.02 points, or 1.52 per cent, to 72,771.72, while Nifty50 fell 360.25 points, or 1.56 per cent, to 22,780.25.
In the day's trade, the Sensex opened at 73,734.83, falling 160.91 points, or 0.21 percent, from its previous close of 73,895.74, and at one point it fell 1,179.51 points, or 1.59 percent, to the day's low of 72,716.23.
At the same time, Nifty 50 opened at 23,064.90, falling 0.32 percent from its previous close of 23,140.50 and at one point it fell 378.3 points or 1.63 percent to reach the day's low of 22,762.20.
Higher crude oil prices and a surge in global bond yields after US President Donald Trump rejected Iran's latest overture weakened investor confidence. In the broader market, Nifty Midcap 100 and Nifty Smallcap 100 closed down by 1.63 per cent and 1.85 per cent respectively.
Sector wise, Nifty PSU Bank was the worst performing sector. The performance of Nifty Private Bank and Nifty Bank was also disappointing; Whereas Nifty IT performed better with the least fall.
In the Nifty50 index, except Dr. Reddy's Laboratories, Infosys and HDFC Life, all other stocks saw a decline. Among these, the biggest decline was in the shares of TMPV, Jio Financial Services, PowerGrid and L&T.
Meanwhile, the market capitalization (market cap) of all BSE listed companies declined to Rs 474 lakh crore from Rs 482 crore at Friday's close, a decline of Rs 8 lakh crore.
As for the reasons for the market's fall on Monday, US President Donald Trump rejected Iran's proposal to reopen the Strait of Hormuz and end the fighting, while Iran insisted that only diplomacy can resolve its conflict with the United States and Israel. Today its widespread impact was seen in the global stock market, oil market and bond market.
Most Asian markets fell, with South Korea's index falling 2 percent and Japan's Nikkei index falling 0.10 percent. Chinese markets were also down more than 1 percent.
Supply concerns kept oil prices higher as the Middle East crisis remained unresolved. Higher crude oil prices could further increase inflation and current account deficit in India, as India is the world's third largest oil importer.
Brent crude futures rose 2.2 percent to $106.6 a barrel, and U.S. WTI crude rose 1.45 percent to $93.76 a barrel. The selloff in bond markets resumed amid surging oil prices and rising inflation concerns.