Sensex and Nifty Drop Over 1% Amid Escalating Israel–US–Iran Conflict and Weak Global Markets

Indian stock markets declined sharply as Sensex and Nifty fell over 1% amid rising Israel–US–Iran tensions, weak Asian markets, and a surge in global crude oil prices.

Mar 4, 2026 - 20:18

0 18

Sensex and Nifty Drop Over 1% Amid Escalating Israel–US–Iran Conflict and Weak Global Markets

Indian benchmark stock indices BSE Sensex and NIFTY 50 declined by more than 1% amid intensifying geopolitical tensions involving Israel, the United States, and Iran, along with weak trends in Asian markets.

Market Performance

The 30-share Sensex fell for the fourth consecutive trading session. In early trade, it dropped 1,795.65 points to 78,443.20.

Similarly, the 50-share Nifty declined for the third straight session, falling 560.3 points to 24,305.40 during morning trading.

At the close of trading:

Sensex ended 1,122.66 points lower at 79,116.19
Nifty fell 385.20 points to 24,480.50, marking its lowest level in the past six months

Out of 3,337 stocks traded, 673 gained, 2,577 declined, and 87 remained unchanged.

Major Stock Movements

On the Sensex, shares of Tata Steel dropped 6.76%, while Larsen & Toubro declined 4.53%. Other laggards included Bajaj Finance, UltraTech Cement, NTPC, InterGlobe Aviation, Bajaj Finserv, and Kotak Mahindra Bank.

Meanwhile, Bharti Airtel, Infosys, and Tech Mahindra recorded gains.

In the Nifty index, Tata Steel, Tata Motors (Passenger Vehicles), SBI Life Insurance, L&T, and JSW Steel declined. On the positive side, Coal India, Bharti Airtel, Infosys, and Tech Mahindra advanced.

Sectoral Performance

Except for the IT sector, most sectoral indices ended in the red. Infrastructure, banking, realty, media, oil & gas, auto, and metal stocks fell between 2% and 4%.

Global Market Impact

Asian markets also witnessed sharp declines.

South Korea’s KOSPI plunged about 12%
Japan’s Nikkei 225, China’s SSE Composite, and Hong Kong’s Hang Seng indices also recorded significant losses

European markets traded lower, while US markets had closed in the red on Tuesday.

Foreign Investment Activity

Foreign Institutional Investors (FIIs) sold equities worth ₹3,295.64 crore on Monday, while Domestic Institutional Investors (DIIs) purchased shares worth ₹8,593.87 crore.

Since last Friday, the total market capitalization of companies listed on the Sensex has declined by ₹16,32,428.12 crore, dropping to ₹4,47,18,243.15 crore.