Indian markets felt the jitters of the escalating tensions between the two biggest oil producing countries Iran and the US. Sensex fell by over 660 points as of 12 20 pm on Monday, trading at 40,802. Nifty too, was down by over 190 points, trading at around 12,000 as of 12 24pm.
In early trade, benchmark Sensex fell over 530 points as the Brent climbed over 2 per cent to $70 a barrel.
Meanwhile, prices of safe haven assets also skyrocketed over fears of further military escalation.
Stocks that were major losers on Sensex were Bajaj Finance, which fell by nearly 5% and PowerGrid, State Bank of India, Maruti Suzuki, Asian Paints, all of which fell 2%.
Gold prices hit Rs 41,330 per 10 grams on Friday, hitting its highest level.
The Indian Rupee fell to as much as 72.10 against the US dollar as compared to the previous close of 71.80.
Observers expressed concern over Iran's announcement that it will no longer abide by any of the limits imposed by 2015 nuclear deal.
Besides, Iraq's parliament urged its leaders to expel troops from the US-led coalition after the US killed the high profile Iranian general Qassem Suleimani.
At 10 a.m., the Sensex was trading at 41,022.30 lower by 442.31 points or 1.07 per cent. It opened lower at 41,378.34 from its previous close of 41,464.61.
The Nifty also fell over 1 per cent to trade at 12,082.95 lower by 143.70 points or 1.18 per cent.
In a series of aggressive tweets, US President Donald Trump said: "They (Iran) attacked us, & we hit back. If they attack again, which I would strongly advise them not to do, we will hit them harder than they have ever been hit before!
".. If Iran attacks an American Base, or any American, we will be sending some of that brand new beautiful equipment their way...and without hesitation," Trump said.
With IANS inputs