April 13 (Reuters) - Indian shares fell on Monday, tracking Asian peers as oil surged above $100 a barrel after U.S.-Iran peace talks over the weekend failed to yield a deal, heightening the risks to economic growth and corporate profitability.
Negotiations between Washington and Tehran in Islamabad ended in a stalemate. U.S. President Donald Trump on Sunday said the U.S. Navy would start blockading nL1N40U07M the Strait of Hormuz, intensifying geopolitical tensions and pushing oil prices higher.
The Nifty 50 fell 1.78% to 23,620 and the Sensex slid 1.83% to 76,139.90 as of 9:48 a.m. IST.
Both benchmarks had risen about 6% last week, marking their strongest weekly performance in more than five years as investors took comfort from a fragile U.S.-Iran ceasefire.
Brent crude jumped about 7.3% to $102 a barrel, while other Asian markets fell about 1.2%.
Back home, all 16 major sectors were in the red. The broader small-caps and mid-caps shed about 1.5% each.
"The failed U.S.-Iran talks and rising crude prices have spurred weakness across global equity markets," said Aakash Shah, technical research analyst at Choice Equity Broking.
"Sentiment has turned cautious again after last week's recovery, and volatility may rise again given the geopolitical uncertainty."
The Nifty volatility index jumped to 21.3 from 18.8 on Friday.
Index heavyweights HDFC Bank and ICICI Bank lost 2.7% and 1.7%, respectively, while oil-to-telecom conglomerate Reliance Industries dropped 2.7%.
Oil marketing companies came under pressure, with BPCL down 3.6%, HPCL losing 4.3% and Indian Oil shedding 3% as higher crude prices threatened margins.
Bucking the trend, Acme Solar and Clean Max gained 6% and 1.2%, respectively, after HSBC initiated coverage on both the renewable energy companies with a "buy" rating.
(Reporting by Bharath Rajeswaran and Vivek Kumar M in Bengaluru; Editing by Rashmi Aich, Mrigank Dhaniwala and Sumana Nandy)
By Bharath Rajeswaran and Vivek Kumar M
