Mumbai, March 30 -- The domestic equity market fell sharply, with Sensex and Nifty dropping over 2%, as a combination of global and domestic factors weighed on sentiment. Escalating US-Iran tensions triggered a surge in crude oil prices, raising inflation concerns, while weak global cues and sustained foreign investor selling added pressure. Banking stocks tumbled after RBI imposed limits on forex positions, fuelling fears of mark-to-market losses. The rupee hitting record lows and volatility linked to monthly F&O expiry further exacerbated the selloff, leading to a broad-based decline across sectors. The Nifty settled below the 22,350 mark dragged by banking shares.

The S&P BSE Sensex tanked 1,635.67 points or 2.22% to 71,947.55. The Ni...