Stock Crash: Shares of a company worth Rs 5 lakh crore started falling like a pack of cards after 1 pm, this is big news.:By midday, the stock had fallen nearly 7% to below Rs 3460. This decline suggests that geopolitical tensions could also have a rapid impact on large Indian infrastructure stocks.

News Topical, Digital Desk : Shares of the engineering and infrastructure giant saw a sharp decline on Friday. Investors were alarmed by news of rising tensions in West Asia, or the Middle East. A significant portion of the company's revenue and order book comes from this region, so the market reacted quickly. By midday, the stock had fallen nearly 7% to below ₹3,460. This decline suggests that geopolitical tensions could also rapidly impact major Indian infrastructure stocks.

Larsen & Toubro Ltd. shares came under pressure as soon as the market opened on Friday. The stock opened at Rs 3696 compared to the previous day's closing price of Rs 3719.50

Initially, there was a slight weakness, but as the day progressed and news of escalating tensions in West Asia began to emerge, selling pressure intensified. The stock began falling sharply around 12 p.m. Investors are concerned that the escalating tensions in the Middle East could impact the company's business. This is why the stock fell nearly 7% to below ₹3,460 by 1:30 p.m. L&T has deep business ties with the Middle East. A significant portion of the company's revenue and order book comes from this region. According to brokerage reports, approximately 33% of the company's total order inflow in the first nine months of FY26 came from the Middle East, while approximately 37% of the total order book also came from this region. According to JM Financial's March 2026 report, the company's international order book is worth approximately ₹3.6 lakh crore, with the Middle East accounting for approximately 75% of this. Saudi Arabia is reported to be the largest contributor to this. A Jefferies report also indicates that Saudi Arabia and the UAE account for a significant portion of L&T's international orders. However, the brokerage maintains a Buy rating on the company and sets a target price of ₹4,500. This indicates that it remains confident in the company's long-term growth. As of December 2025, L&T's total order book is approximately ₹7.3 lakh crore. Of this, 49% are international orders, and 75% of these orders come from the Middle East.

Consequently, as soon as news of escalating tensions in the Middle East broke, investors immediately began booking profits, citing risk aversion

In terms of stock performance, the stock has fallen by approximately 12% in the past week, while the decline has reached approximately 17% in a month. However, the long-term picture is slightly better, with the stock returning approximately 9% in a year. Experts believe that further escalation of tensions in the region could lead to supply chain disruptions and impact project timelines. However, on the other hand, there's also the possibility that if infrastructure and capex spending increases in the Middle East, L&T could receive new orders in the long term. While the market is currently in a state of fear, long-term investors are still keeping an eye on the company's strong order book and global projects.