Stock markets tumble as West Asia war dents risk appetite

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.

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.

Iran-Israel conflict LIVE updates

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.