A total of 3,379 stocks declined, while 972 advanced and 185 remained unchanged on the BSE.

Equity benchmark indices Sensex and Nifty nosedived nearly 2 per cent on Monday as soaring crude oil prices and weak global trends due to the worsening situation in West Asia triggered a sharp sell-off in the stock market.

Besides, unabated foreign fund exodus and the weakness in the rupee against the US dollar weighed heavily on investors' sentiment, traders said.

The 30-share BSE Sensex tanked 1,352.74 points, or 1.71 per cent, to settle at 77,566.16, registering its second day of decline. During the day, the benchmark crashed 2,494.35 points, or 3.16 per cent, to 76,424.55.

A total of 3,379 stocks declined, while 972 advanced and 185 remained unchanged on the BSE.

On similar lines, the 50-share NSE Nifty dropped 422.40 points, or 1.73 per cent, to end at 24,028.05. Intra-day, it tumbled 752.65 points, or 3.07 per cent, to 23,697.80.

"Selling intensified as the Middle East conflict entered its second week with no signs of de-escalation. The sustained rise in crude prices is likely to complicate the RBI’s policy outlook by keeping inflation elevated and posing risks to growth. Additional concerns in the US about potential caps on redemptions in specific funds also contributed to the sell-off.

"Despite this, the current phase may offer opportunities for long-term investors. Selective value buying in pharma and IT helped limit deeper losses and indicated a defensive stance amid a weakening rupee in the short term," Vinod Nair, Head of Research, Geojit Investments Limited, said.

UltraTech Cement was the biggest loser in the Sensex pack, tumbling 5.23 per cent, followed by Maruti, Mahindra & Mahindra, State Bank of India, InterGlobe Aviation, and Adani Ports were among the major laggards.

In contrast, Reliance Industries, Sun Pharma, Infosys, Tech Mahindra and HCL Tech were the gainers.

Brent crude, the global oil benchmark, jumped 12.34 per cent to USD 104.1 per barrel.

The rupee crashed to its all-time closing low of 92.35 (provisional) against the US dollar on Monday, losing 53 paise during the session, as global crude oil prices saw a sharp spike, and the greenback strengthened amid worsening conflict in West Asia.

"Indian equity markets ended the session sharply lower after opening with a steep gap-down of nearly 3 per cent, as weak global cues and the deepening conflict in the Middle East weighed heavily on investor sentiment.

"The escalation in geopolitical risks pushed crude oil prices above the USD 100 per barrel mark and drove the Indian rupee to a record low against the US dollar, amplifying concerns around inflation and external balances," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

The BSE smallcap select index dived 2.11 per cent and the midcap select index tanked 2.08 per cent.

All BSE sectoral indices ended lower. The BSE mid-small private banks quality tilt tumbled 4.50 per cent, PSU Bank (3.92 per cent), auto (3.89 per cent), services (3.37 per cent), bankex (3.16 per cent), oil & gas (3.11 per cent) and Private Banks index (2.89 per cent).

At the NSE, Nifty auto sank 4.10 per cent, Nifty PSU Bank dived 3.97 per cent, Private Bank tumbled 2.78 per cent and metal (2.60 per cent).

"Investor sentiment remained fragile due to escalating geopolitical tensions in the Middle East, which triggered a sharp surge in crude oil prices...raising concerns over inflation and economic growth. The spike in oil prices, weakness in the rupee, and continued foreign institutional investor (FII) selling further intensified the sell-off in domestic equities," Ajit Mishra - SVP, Research, Religare Broking Ltd, said.

In Asian markets, South Korea's Kospi tumbled 5.96 per cent, and Japan's Nikkei 225 dropped 5.20 per cent. Shanghai's SSE Composite index and Hong Kong's Hang Seng index also closed in negative territory.

Markets in Europe were trading significantly lower in mid-session deals.

The US market ended sharply lower on Friday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,030.38 crore on Friday, according to exchange data. Domestic Institutional Investors (DIIs) bought stocks worth Rs 6,971.51 crore in the previous trade.

On Friday, the Sensex tumbled 1,097 points or 1.37 per cent to settle at 78,918.90. The Nifty dropped 315.45 points or 1.27 per cent to end at 24,450.45.

Last week, the BSE benchmark tanked 2,368.29 points or 2.91 per cent, and the Nifty declined 728.2 points or 2.89 per cent.

"Fluctuations in crude oil prices are expected to weigh on sectors where oil is a key input cost. Oil marketing companies, aviation, paints and cement stocks could face pressure due to rising and volatile crude prices...Banking stocks came under pressure amid concerns that higher crude prices could weigh on economic growth and tighten liquidity conditions, Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said. (PTI)