New Delhi, March 2 Equity investors lost a combined Rs 6.59 lakh crore on Monday as markets experienced a significant downturn amid rising tensions in the Middle East, which weighed heavily on investor sentiment.
The 30-share BSE Sensex fell by 2,743.46 points or 3.37%, closing at 78,543.73. It later closed at 80,238.85, down 1,048.34 points or 1.29%.
The market capitalization of BSE-listed companies declined by Rs 6,59,978.08 to Rs 4,56,90,693.19 crore (USD 5 trillion).
"Indian equities experienced a sharp decline as escalating tensions in the Middle East triggered a pronounced risk-off response. Markets reacted to US and Israeli strikes on Iran and subsequent regional retaliation, prompting a flight to safe-haven assets," said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Brent crude, the global oil benchmark, rose by 7.29% to USD 77.85 per barrel.
"Investor sentiment deteriorated sharply after escalating tensions in the Middle East triggered a surge in crude oil prices and heightened global uncertainty. The spike in oil raised concerns about inflation, currency pressure, and India's import bill, which weighed on equities. Volatility also increased as participants reduced exposure amid fears of further geopolitical escalation," said Ajit Mishra, SVP, Research, Religare Broking Ltd.
Iran's Supreme Leader Ayatollah Ali Khamenei was killed in a coordinated US-Israeli airstrike on Tehran on Saturday morning, with Iranian state media confirming his death on Sunday.
Iran began firing missiles at Israel and Arab countries in the region in retaliation for the killing of its Supreme Leader.
From the Sensex pack, InterGlobe Aviation, Larsen & Toubro, Adani Ports, Maruti, Asian Paints, and Reliance Industries were among the biggest losers.
Bharat Electronics, Sun Pharma, and ITC were the only gainers.
The BSE smallcap select index fell by 1.81%, and the midcap select index dropped by 1.67%.
Among sectoral indices, services tumbled by 3.81%, consumer durables (2.30%), auto (2.23%), consumer discretionary (2.16%), oil & gas (2.15%), industrials (2.14%), and energy (2.06%).
A total of 3,561 stocks declined, while 821 advanced and 146 remained unchanged on the BSE.
