The stock market continued its slide on Monday amid concerns surrounding the conflict in West Asia and surging energy prices.
The benchmark Sensex fell more than 1,600 points, or 2.2%, while the Nifty dropped over 480 points, or 2.1%, at the close.
Stock markets had begun to slide on March 2 after the conflict began.
The India VIX index, which measures volatility in the market, spiked over 4% on Monday.
Major Asian stock indices also continued their fall on Monday. Hong Kong’s Hang Seng index was down 0.8%, South Korea’s Kospi had fallen 2.9% and Japan’s Nikkei 2.7%. The China’s Shanghai Composite recovered 0.27% by the end of the day after opening the session in the negative.
Rupee slides
The value of the Indian rupee improved marginally on Monday after the Reserve Bank of India tightened restrictions on onshore position limits, amid weeks of foreign funds outflow and falling stocks.
The Indian currency was trading at 94.8 against the United States dollar at 6 pm on Monday, matching the record low it had hit at the close of trading on Friday.
On Friday, the Indian central bank directed banks to limit their net open rupee positions in the foreign exchange market at $100 million by the end of each business day, Reuters reported.
Global energy prices
Global oil prices have increased by more than 50% since the conflict began.
The benchmark Brent crude was trading at nearly $115 per barrel on Monday. The price was $78 per barrel on February 27, a day before the conflict started.
The US WTI crude was trading at $101 per barrel. The price was $67 per barrel on February 27.
Iran has effectively blocked the Strait of Hormuz for most international commercial vessels since the conflict began. About 20% of global petroleum supply passes through the maritime chokepoint.
Follow top updates from the conflict in West Asia here.