Sensex, Nifty fall 0.7% as oil surge erases early gains

"Markets are likely to remain under pressure until crude oil prices eased significantly or there was greater clarity on a resolution to the conflict," said Utsav Verma, head of research at Choice Institutional Equities.

Indonesia lost 2.6% and China's Shenzhen Composite fell 1.8%, while Hong Kong's Hang Seng rose 0.3%. Brent crude futures rose 1.2% to $106.19 a barrel, retracing earlier downsides, after the fresh attacks on Saudi Arabia, a major oil exporter, raised concerns over supplies from the region.

In Indian markets, foreign portfolio investors were net sellers of equities worth ₹1,708.5 crore on Monday, while domestic institutional investors were net buyers to the tune of ₹3,045 crore, according to NSE provisional data.

Foreigners have sold $3.62 billion worth of Indian equities in October so far, following net sales of $4.14 billion in September. Their net selling in Indian equities has exceeded $33 billion so far in 2026, NSDL data showed.

So far this year, the Sensex and Nifty have lost over 15% each.