Mumbai/IBNS, June 8 -- Indian benchmark indices plunged on Monday as investors turned cautious following fresh military exchanges between Israel and Iran, raising fears of a wider conflict in the Middle East.

Though the market recovered some ground during the session, the Sensex continued to trade around 500 points lower, while the Nifty remained down by 180-200 points.

The Indian rupee also came under pressure, falling 38 paise against the US dollar to trade at 95.32.

Market participants attributed the sell-off to rising geopolitical tensions after Israel and Iran exchanged direct attacks for the first time since a ceasefire agreement, stoking concerns over global economic stability and energy supplies.

Iran reportedly fired around 1...