Indian equity markets opened lower on Monday, with the BSE Sensex dropping 0.78% and the Nifty 50 declining 0.69%.
The sell-off was driven by escalating geopolitical tensions in the Middle East, specifically following Iran's claim of closing the Strait of Hormuz.
All sector indices recorded losses as investor sentiment cooled amid fears of supply chain disruptions and rising energy costs.
The sharp reversal marks a stark contrast to the previous week's performance.
On July 6, Indian benchmarks had opened higher, buoyed by robust gains in private banking stocks following strong June-quarter business updates from major lenders.
The sudden shift in market direction highlights the vulnerability of Indian equities to external geopolitical shocks, even when domestic fundamentals remain supportive.