L&T shares tumble 6% amid Middle East tensions; here is why market participants are worried

Geopolitical tensions in the Middle East intensified sharply from Saturday after coordinated military strikes by the United States and Israel targeted Iran, fuelling fears of a wider regional conflict.

The attacks resulted in the killing of Iran’s Supreme Leader, Ayatollah Ali Khamenei, dramatically escalating tensions and amplifying global economic uncertainty.

On Sunday, Israel launched another wave of strikes on Tehran, with Iran retaliating through fresh missile barrages. The rapid escalation has heightened concerns about broader instability in the region and its spillover effects on the global economy.

Financial markets have reacted nervously, with investors flocking to safe-haven assets such as gold, while crude oil prices have turned volatile amid concerns over potential supply disruptions and broader economic fallout.

L&T share price tanks; here is why

Shares of the infrastructure major L&T tumbled as much as 6.1% to hit a low of ₹4,017 on the NSE.

The stock slid as Larsen & Toubro remains one of the largest Indian players in the Middle East, with significant business exposure to the region.

Larsen & Toubro (L&T) is a multinational engaged in EPC projects, high-tech manufacturing, and services. It operates in over 50 countries worldwide. A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for over eight decades.

The company is engaged in core, high-impact sectors of the economy, and our integrated capabilities span the entire spectrum of ‘design to delivery’.

L&T's manufacturing footprint extends across eight countries in addition to India. L&T has several international offices and a supply chain that extends around the globe.