Athira sethu
Kochi, 2 March 2026
Indian equity benchmarks witnessed a sharp selloff on Monday as escalating geopolitical tensions in West Asia rattled investor sentiment. The market reaction followed reports that Iran’s Supreme Leader Ayatollah Ali Khamenei was killed in missile strikes allegedly carried out by the US and Israel over the weekend, intensifying hostilities across the oil-rich region. The sharp escalation triggered panic across global markets, leading to a steep decline in domestic indices and significant erosion in market capitalisation at the opening bell.
Both benchmark indices- Nifty & Sensex both ended sharply lower as the conflict engulfed the whole region. Nifty ended 1.24% lower at 24,865.70 on Monday, while Sensex closed 1.29% down at 80,238.85.
All major indices were down with 13 out of 15 major sector gauges ended the day lower than Friday closing. NIFTY Oil & Gas index witnessed a a fall of over 2%. Disruptions at the Strait of Hormuz were the cause of such fall.
NIFTY Auto, IT, FMCG, PSU Bank, Realty, Consumer Durables, Bank and Financial Services indices also dropped between 1% and 2.2% on Monday.
Key Factors Dragging Markets Lower
1) Escalation of War in West Asia
| Development | Details |
| Trigger Event | Death of Ayatollah Ali Khamenei in missile strikes |
| Aftermath | Iranian retaliatory attacks across Middle East |
| Market View | Elevated uncertainty and short-to-medium term negative impact |
Market experts noted that rising geopolitical uncertainty is expected to weigh on sentiment in the near term.
2) Surge in Crude Oil Prices
| Crude Benchmark | Price | % Surge |
| Brent Crude | $77.08/barrel | +6% |
| WTI Crude | $70.71/barrel | +5.5% |
| Strategic Concern | Details |
| Strait of Hormuz | Over 20% of global oil passes through |
| Risk | Missile strikes raise supply disruption fears |
| Forecast | Projection |
| Brent Crude Target | $100 per barrel (Barclays estimate) |
