MUMBAI: Market benchmark indices Sensex and Nifty drifted lower in early trade on Monday amid renewed hostilities between the US and Iran.
The 30-share BSE Sensex declined 63.65 points to 77,047.63 during initial trading. The 50-share NSE Nifty went marginally up by 16.55 points to 24,070.20.
Later, the BSE benchmark dropped 246.54 points to 76,853.93, and the Nifty dipped 50.55 points to 24,005.45.
From the 30-Sensex firms, Kotak Mahindra Bank, Mahindra & Mahindra, Adani Ports, InterGlobe Aviation, HCL Tech and Reliance Industries were among the major laggards.
Eternal, Trent, Asian Paints and Tech Mahindra were among the gainers.
Brent crude, the global oil benchmark, traded 0.72 per cent higher at USD 72.51 per barrel.
"Indian equity markets are expected to trade on a cautious note following a renewed flare-up in geopolitical tensions after fresh military exchanges between the US and Iran.
"Although both sides have reportedly agreed to halt further attacks following the latest escalation, the developments have reintroduced an element of uncertainty into global financial markets and are likely to keep investor sentiment guarded in the near term," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
In Asian markets, South Korea's Kospi and Japan's Nikkei 225 index traded lower, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index quoted in the green.
US markets ended marginally lower on Friday.
Stock markets were closed on Friday for Muharram.
Foreign Institutional Investors (FIIs) bought equities worth Rs 383.76 crore on Thursday, according to exchange data.
On Thursday, the Sensex settled 109.25 points, or 0.14 per cent, higher at 77,100.47. The Nifty rose by 34.35 points, or 0.14 per cent, to end at 24,056.