SENSEX crashes over 2,000 pts, NIFTY50 slips below 23,800 amid the oil price spike, US-Iran war; OMCs crack over 8%

At the time of writing this report, the S&P BSE SENSEX traded at 76,645.96 levels, down 2,272.94 points, or 2.88%, while the NSE's NIFTY50 was trading at 23,767.15, down 683.30 points, or 2.79%.

The market capitalisation of BSE-listed companies dropped by over ₹12 lakh crore.

Oil prices surged 25% on Monday, reaching their highest level since July 2022, as the expanding Iran–Israel conflict escalation of 2026 involving the United States, Israel, and Iran prompted some major Middle Eastern producers to curb supplies.

The rally was also driven by fears of prolonged disruption to shipping through the Strait of Hormuz, a critical chokepoint for global oil trade.

The conflict could leave consumers and businesses worldwide facing weeks or even months of elevated fuel prices, even if the week-old war ends quickly, as energy suppliers contend with damaged infrastructure, disrupted logistics, and heightened risks to shipping routes.

Heavyweights see sharp decline

Only two stocks – ONGC and M&M on the NIFTY50 index – were trading in the green. The remaining stocks were in the red. The losers included HDFC Bank (down over 3%), Reliance Industries (down 0.45%), ICICI Bank (down 4.5%), and L&T 4.68%. SBI was down over 5%.

Buzzing Stocks

A surge in crude oil prices is negative for OMCs as they may face margin pressures if retail fuel prices are not increased in line with rising crude costs.

Mid and small-cap stocks

The BSE 150 MidCap Index was trading at 15,056.62, down 452.10 points, or 2.92%, while the BSE 250 SmallCap Index traded at 5,909.76, down 194.56 points, or 3.19%.

FII activity

Foreign investors withdrew ₹21,000 crore (approximately $2.3 billion) from Indian equities over the last four trading sessions amid deteriorating global risk sentiment triggered by the West Asia crisis.

The latest sell-off comes after foreign portfolio investors (FPIs) infused ₹22,615 crore into Indian equities in February, the highest monthly inflow in 17 months.

Prior to that, FPIs had been net sellers for three consecutive months. They withdrew ₹35,962 crore in January, ₹22,611 crore in December, and ₹3,765 crore in November, according to data from the depositories.

The latest outflows occurred during March 2-6, when FPIs sold equities worth about ₹21,000 crore in the cash market. March 3 was a trading holiday on account of Holi.