Mumbai: Indian benchmark indices Sensex and Nifty plunged more than two per cent during late trade on Wednesday after US President Donald Trump said the interim agreement with Iran was "over", triggering a sharp rally in global crude oil prices and rattling investor sentiment.
The 30-share BSE Sensex dropped 1,722.99 points, or 2.20 per cent, to 76,457.73 in intraday trade. The NSE Nifty50 declined 530.05 points, or 2.17 per cent, to 23,868.65.
All 30 Sensex constituents traded in negative territory. InterGlobe Aviation, Maruti Suzuki, Hindustan Unilever, UltraTech Cement, Bajaj Finance and Mahindra & Mahindra were among the biggest losers.
Brent crude, the global oil benchmark, climbed 6.19 per cent to $ 78.75 a barrel following Trump's remarks.
The US President said the interim agreement with Iran was "over", although negotiations would be allowed to continue. The comments fuelled concerns that tensions in West Asia could escalate again, raising fears of supply disruptions in the global oil market.
Asian markets also witnessed sharp movements. South Korea's Kospi fell 5.35 per cent, Japan's Nikkei 225 declined 2.11 per cent and China's Shanghai Composite slipped 0.49 per cent. Hong Kong's Hang Seng index, however, gained 2.99 per cent.
US markets had closed lower on Tuesday.
Foreign Institutional Investors (FIIs) remained net buyers on Tuesday, purchasing Indian equities worth Rs 393.19 crore, according to exchange data.
The latest decline comes after a subdued close in the previous session, when late selling dragged the Sensex down 104.35 points to 78,180.72, while the Nifty fell 31.65 points to settle at 24,398.70.