The BSE gauge Sensex crashed over 1,700 points while the NSE Nifty ended below the 17,000-level on Monday amid escalating Russia-Ukraine tensions.
The 30-share Sensex nosedived 1,747.08 points or 3 per cent to settle at 56,405.84 and the broader Nifty plummeted 531.95 points or 3.06 per cent to 16,842.80.
On the Sensex chart, barring TCS, all shares closed with steep to moderate losses -- with Tata Steel, HDFC and SBI tumbling over 4 per cent.
Elsewhere in Asia also, bourses closed in deep red after concerns that Russia may soon invade Ukraine, which sent oil prices soaring.
Analysts said that domestic markets opened sharply lower in line with negative Asian bourses as also sharply lower US equities.
Deepak Jasani, Head of Retail Research, HDFC Securities, said, "US stocks closed sharply lower on Friday as heightened concern that Russia may soon invade Ukraine sent oil prices spiking and investors to dump risky assets like equities".
Investors also weighed a sharp drop in consumer sentiment and a pickup in near-term inflation expectations, he added.
The US administration has become increasingly outspoken about its concerns that Russia will stage an incident in the coming days that would create a false pretext for an invasion of Ukraine.
Foreign institutional investors (FIIs) were net buyers in the capital market on Friday, as they bought shares worth Rs 108.53 crore, according to stock exchange data.
Rupee Slumps 22 Paise To Close At 75.58 Against US Dollar
The rupee plunged by 22 paise to close at 75.58 (provisional) against the US currency on Monday, as geopolitical tensions pushed investors towards safe-haven assets.
Forex traders said a lacklustre trend in domestic equities and elevated crude oil prices weighed on the local unit.
At the interbank foreign exchange, the rupee opened at 75.53 against the American dollar, and later witnessed an intra-day high of 75.37 and a low of 75.64 against the greenback.
The local unit finally ended the day at 75.58, down 22 paise from the previous close, registering the fifth consecutive session of loss, during which it has lost 68 paise.
On Friday, the rupee had plunged by 21 paise to a nearly seven-week low of 75.36 against the US currency on forex outflows and a strong dollar after a spike in inflation in the US boosted expectations of an aggressive rate hike by the Federal Reserve.
"The rupee depreciated for the fifth day in a row following a plunge in domestic equities and stronger dollar index," Dilip Parmar, Research Analyst, HDFC Securities said.
The local currency was the worst performing currency among Asian currencies, ahead of retail inflation data which is likely to be around 6 per cent, the upper range of the central bank's mandate, Parmar said, adding that stocks fell as geopolitical risks over Ukraine rippled through global markets.
"Near-term outlook for USD-INR remains following strength in dollar and weaker macro environment. The pair is having resistance around 75.70 and support at 75.25," Parmar said.
On the domestic equity market front, the 30-share Sensex ended 1,747.08 points or 3 per cent lower at 56,405.84, while the broader NSE Nifty settled down 531.95 points or 3.06 per cent at 16,842.80.
Global oil benchmark Brent crude futures fell 0.35 per cent to USD 94.11 per barrel.
Foreign institutional investors remained net buyers in the capital market on Friday as they purchased shares worth Rs 108.53 crore, as per stock exchange data.
Gold Climbs Rs 478; Silver Jumps Rs 932
Gold prices in the national capital on Monday rallied Rs 478 to Rs 49,519 per 10 grams, reflecting overnight gains in international precious metal prices and sharp rupee depreciation, according to HDFC Securities.
In the previous trade, the yellow metal settled at Rs 49,041 per 10 grams.
The Indian rupee declined 23 paise to settle at 75.59 against the US dollar on Monday.
Silver zoomed by Rs 932 to Rs 63,827 per kg, from Rs 62,895 per kg in the previous trade.
"Spot gold prices for 24 carat gold at Delhi rallied by Rs 478 reflecting overnight gains in COMEX gold prices and sharp rupee depreciation," Tapan Patel, senior analyst (commodities) at HDFC Securities, said.
In the international market, gold was trading marginally lower at USD 1,857 per ounce and silver was flat at USD 23.02 per ounce.
"Gold prices traded marginal down with spot gold prices at COMEX were trading near USD 1,857 per ounce on Monday," he added.