Dalal Street’s Black Monday: Middle East Tensions Wipes out Rs 8 Lakh Crore

Mumbai: The escalating conflict in the Middle East sent shockwaves through Dalal Street on Monday, triggering a sharp sell-off across sectors and wiping out more than Rs 8 lakh crore of investor wealth in a single trading session.

The 30-share BSE Sensex plunged 1,048 points to close at 80,238.85, reflecting widespread panic amid rising geopolitical uncertainty.

Indian investors lost roughly Rs 6.5 lakh crore to Rs 8 lakh crore in total market wealth on Monday, March 2, 2026.

The broader market sentiment remained fragile throughout the day, with heavy selling pressure intensifying in the final hours of trade.

The 50-share Nifty 50 at the National Stock Exchange also slipped below the crucial 25,000 mark. The index dropped 312 points to settle at 24,865.70, underscoring the deep impact of global tensions on domestic equities.

Market participants cited fears of a prolonged conflict in the Middle East, potential disruptions in crude oil supply, and a spike in global commodity prices as key triggers behind the steep decline.

Rising oil prices are particularly concerning for India, which imports a large portion of its crude requirements, raising concerns over inflation and fiscal stability.

Among the major laggards, Larsen & Toubro fell nearly 5 per cent, emerging as one of the top losers on the Sensex pack.

Shares of Adani Ports and Special Economic Zone declined around 3 per cent amid heightened volatility in infrastructure and logistics counters.

Banking, infrastructure, and metal stocks bore the brunt of the sell-off, while safe-haven buying in select FMCG and defensive stocks offered limited support.

Analysts believe that markets are likely to remain volatile in the near term, with global developments, crude oil trends, and foreign institutional investor flows playing a decisive role.

The sharp correction serves as a reminder of how interconnected global geopolitics and domestic markets have become, with investors closely tracking every development in the Middle East conflict.

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