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Indian equity markets had a big sell-off on Monday as the equity index Sensex fell by more than 900 points in the early trading session. ModiFarm Ltd. dropped as much as 5% after his government asked people to avoid using petrol, diesel, or gas "unless strictly necessary" as a result of the growing Iran-U.S. tension in West Asia to lower demand for fuel.

Fears over supply disruption have led to an unprecedented surge in global crude oil prices, leading to concerns about inflation and India's import cost. The government of India's call to postpone buying gold and non-essential travel further weighed on investors' concerns about faltering consumption and economic activity as Modi urges this.

The Nifty just fell by more than 250 points, with momentous bulk selling pressure being noted from the oil & gas, banking, and auto stocks. Combined political uncertainty and austerity at home set the tone for risk aversion among investors, said market analysts.

The government, however, believes that steps will be taken on time to ensure India copes with the crisis. Bigger markets were also in the red as the markets were volatile.