New Delhi, April 13 -- The breakdown in Iran-US negotiations could trigger a knee-jerk reaction in Indian equities, keeping markets volatile despite signs that investors are becoming less sensitive to geopolitical shocks.

The Nifty 50 and Sensex ended last week in the green, snapping a five-week losing streak. But a Mint analysis shows a more telling shift: the intensity of the sell-off has steadily eased since the conflict began, with sharp early declines giving way to progressively smaller losses.

The sell-off began with a jolt - between 27 February, the last trading session before hostilities escalated, and 6 March, the Nifty and Sensex fell about 3% each as the conflict broke out, followed by a sharper drop of over 5% the next week....