Mumbai, July 8 -- Indian equity markets closed sharply lower on Tuesday after comments by US President Donald Trump at the NATO summit sparked fresh geopolitical concerns, triggering a wave of risk aversion across global markets in the final hour of trading.

The benchmark Nifty 50 plunged more than 500 points, or over 2 per cent, to settle at 23,887.45, while the Sensex tumbled over 1,600 points, or around 2 per cent, to close at 76,555. Broader markets also witnessed heavy selling, with the Nifty Financial Services and Nifty PSU Bank indices emerging among the worst performers. India VIX surged over 28 per cent, signalling a sharp spike in market volatility.

The sell-off intensified after Trump, speaking at the NATO summit in Ankara, s...