New Delhi, March 11 -- Indian equity markets started the day on a cautious footing, but the mood quickly turned sour as a broad-based sell-off gathered pace. Benchmark indices fell nearly 2%, closing at a 10-month low, quickly erasing the optimism seen in the previous session.

Early hopes that tensions in West Asia might cool soon faded as reports of fresh military activity surfaced and concerns about the Strait of Hormuz being shut down returned.

Wednesday's sell-off wiped out Rs.5.48 trillion in BSE market capitalization in a single session. Since the US-Iran war began, BSE-listed companies have together seen nearly Rs.21.95 trillion of investor wealth evaporate, underscoring the toll the geopolitical turmoil has taken on the markets....