The domestic benchmark indices, Sensex and Nifty50, on Monday plunged in early trade as escalating tensions in West Asia rattled global financial markets and weighed on investor sentiment. 

The sell-off followed reports that Iran launched missile strikes on Israel, dampening hopes of a potential peace agreement between Washington and Tehran and raising fresh concerns over the stability of the ceasefire in the region. 

At 9.25 am, the BSE Sensex fell 737.25 (0.99%) points to 73,506.09. On the other hand, the NSE Nifty50 was trading at 23,076.65, down 290.05 points (1.24%). 

Broader markets 

In the broader market, the Nifty MidCap and Nifty SmallCap indices declined 1.51% and 1.52%, respectively, reflecting broad-based selling pressure.  

Power Grid, Sun Pharma, SBI, and Axis Bank were the only gainers among the 30 Sensex constituents. On the other hand, M&M, TCS, Trent, and Eternal emerged as the top losers.

Among sectoral indices, Nifty Realty and Nifty Metal emerged as the biggest laggards while defensive sectors such as Nifty Pharma and Nifty Healthcare outperformed the broader market. 

Global markets 

The risk-off mood spread across Asia-Pacific markets. South Korea's Kospi plunged 9% in early trading, while Japan's Nikkei 225 and Hong Kong's Hang Seng fell 4.14% and 1.50%, respectively. 

The weakness mirrored losses on Wall Street. On Friday, the Dow Jones Industrial Average declined 1.35%, while the S&P 500 dropped 2.64%. The Nasdaq Composite ended 4.18% lower. 

Crude oil prices surged amid fears that a prolonged conflict in West Asia could disrupt global energy supplies. Brent crude futures for June delivery rose 3.29% to $96.15 per barrel on the Intercontinental Exchange. 

Meanwhile, precious metals traded lower despite heightened geopolitical uncertainty. Gold futures slipped 0.36%, while silver futures fell 1.8%, reflecting profit-booking by investors. On the other hand, the rupee falls 17 paise to 95.35 against US dollar in early trade on Monday.

Forex traders said the sharp rise in Brent crude prices weighed on investor sentiment. Oil prices surged after Iran launched multiple waves of missile attacks on Israel, fuelling concerns over regional stability and the prospects of sustaining the ceasefire.

The rupee had rallied on Friday, appreciating 56 paise to settle at 95.18 against the US dollar—its strongest single-day gain in nearly two months—after the Reserve Bank of India unveiled measures aimed at boosting foreign capital inflows and enhancing forex liquidity.

Meanwhile, the dollar index, which measures the greenback's performance against a basket of six major currencies, rose 0.42% to 95.33.