Iran Israel Conflict | Stock markets tumble as West Asia war dents risk appetite
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Shares tumbled on Monday (March 2, 2026) as the West Asia war pushed crude prices higher and triggered a flight to safe havens, weighing on investor sentiment.
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The Nifty 50 fell 2.06% to 24,659.25 and the BSE Sensex shed 3.38% to 78,543.73 as of 9:15 a.m. IST.
This is the steepest intraday drop for Nifty since February 1 and the Sensex since April 7, 2025.
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Rupee depreciated against the dollar while government bond yields rose after U.S., Israel strikes on Iran raised the risk of protracted conflict in the Middle East.
All 16 major sectors logged losses. The broader small-caps and mid-caps fell 3.8% and 3.4%, respectively.
Oil marketing companies, paint and tyre makers, aviation companies and chemical manufacturers all fell on rising crude oil prices.
Crude surged more than 7% on Monday (March 2) to the highest in months.
Brent crude futures climbed to about $82.40 a barrel, their highest in 14 months, in the first trading after the U.S.-Israeli strikes on Iran over the weekend killed Tehran’s Supreme Leader Ali Khamenei, jolting markets and deepening uncertainty for the global economy.
Tehran said it has closed navigation through the Strait of Hormuz, through which nearly 20% of global oil flows and over 40% of India’s crude imports transit, prompting governments and refiners to assess oil stockpiles.
Published – March 02, 2026 09:38 am IST
