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News Topical, Digital Desk : Share Market Crash: Indian stock markets plunged sharply on Monday, March 2, 2026. Rising geopolitical tensions in West Asia pressured global markets and prompted investors to shy away from risk. The Nifty (NSE) fell below 24,700 during trading, hitting a one-month low. Investor wealth declined by more than ₹10 lakh crore in the opening minutes.
Selling was widespread across the market, with more than 460 Nifty 500 stocks
falling between 2% and 7%. The Nifty Midcap 100 index fell more than 2%, with 96 of its 100 stocks trading lower. More than 460 Nifty 500 stocks also declined. On a sectoral basis, 14 out of 15 Nifty Auto stocks declined, while 38 out of 40 Nifty Energy stocks were in the red. Nifty India Tourism, Nifty Consumer Durables and Nifty Auto were the worst performing sectoral indices.
Why Share Market Fall Today
Impact of Global Cues
Global cues were weak due to the escalating conflict between the US and Iran. Dow Jones futures fell by around 690 points in early trade, while S&P 500 futures were down by around 100 points and Nasdaq futures by 480 points.
Crude oil prices surge Crude oil prices surged after the US and Israel's attacks on Iran over the weekend and retaliatory missile and drone attacks in several parts of the Gulf region. Brent crude rose by 12 percent to cross $80 per barrel for the first time since June last year, though it later fell slightly. West Texas Intermediate also initially rose by 8 percent. Iran is the fourth-largest producer in the OPEC+ group and contributes about 12 percent to total production. The country produces approximately 3.3 million barrels of oil per day, accounting for about 3 percent of global supply. The possibility of closing the Strait of Hormuz also increased market volatility. It handles about 20 percent of global oil and LNG supplies. However, Iran's Foreign Minister Abbas Araghchi told Al Jazeera that there is no intention to close the strait. According to Barclays analysts, oil prices could reach $100 per barrel if the disruption continues for a long time, although a decline is possible if tensions ease.
Rupee Weakness: The Indian rupee weakened against the dollar amid fears of a prolonged conflict, and government bond yields also rose. Asian currencies fell between 0.2% and 0.6%, and the Asia-Pacific Equity Index was down 1.5%.
Foreign investors (FIIs) continued to be net sellers. On February 27, foreign portfolio investors sold Indian shares worth ₹7,536.4 crore, while domestic institutional investors bought ₹12,292.8 crore. According to expert VK Vijayakumar, the escalating conflict in West Asia has created a risk-averse environment in the financial markets. He said that foreign investors may monitor the situation before making new investments in emerging markets and will make decisions based on the impact on crude oil and currency markets.
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