Equity investors lost Rs 6.59 lakh crore on Monday as Indian markets tumbled sharply amid escalating tensions in West Asia, which triggered a wave of risk aversion across global financial markets.
The 30-share BSE Sensex plunged 2,743.46 points, or 3.37 per cent, to 78,543.73 in early trade before recovering some losses to close at 80,238.85, down 1,048.34 points, or 1.29 per cent. The broader sell-off wiped out Rs 6,59,978.08 crore from the market capitalisation of BSE-listed firms, bringing the total valuation down to Rs 4,56,90,693.19 crore (USD 5 trillion).
Market participants reacted nervously to intensifying hostilities involving the United States, Israel and Iran, prompting a shift towards safe-haven assets.
“Indian equities witnessed a sharp decline as escalating tensions in West Asia triggered a pronounced risk-off response. Markets reacted to US and Israeli strikes on Iran and subsequent regional retaliation, prompting a flight to safe-haven assets,” said Siddhartha Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services Ltd.
Brent crude, the global oil benchmark, surged 7.29 per cent to USD 77.85 per barrel, heightening concerns over inflationary pressures and India’s import bill.
Also read: Gold, silver prices surge over 3 pc in early trade
Ajit Mishra, SVP (Research), Religare Broking Ltd, said, “Investor sentiment deteriorated sharply after escalating tensions in the Middle East triggered a surge in crude oil prices and heightened global uncertainty. The spike in oil raised concerns about inflation, currency pressure and India’s import bill, which weighed on equities. Volatility also increased as participants reduced exposure amid fears of further geopolitical escalation.”
The turbulence followed reports that Iran’s Supreme Leader Ayatollah Ali Khamenei was killed in a coordinated US-Israeli airstrike on Tehran, with Iranian state media confirming his death. Iran subsequently launched missile attacks targeting Israel and parts of the region.
Among Sensex constituents, InterGlobe Aviation, Larsen & Toubro, Adani Ports, Maruti, Asian Paints and Reliance Industries were the worst hit. Bharat Electronics, Sun Pharma and ITC emerged as the only gainers.
Broader markets mirrored the weakness, with the BSE smallcap index falling 1.81 per cent and the midcap index declining 1.67 per cent. Sectoral indices bore the brunt of the sell-off, led by services, down 3.81 per cent, followed by consumer durables, auto, oil & gas, industrials and energy.
On the BSE, 3,561 stocks declined, while 821 advanced and 146 remained unchanged, underscoring the breadth of the downturn.
Follow us
