Sensex, Nifty crash: Why is the Indian stock market falling today?

Stock market crash: The Sensex fell 1,561.71 points, or 1.92 per cent, to 79,725.48, while the Nifty dropped 484.30 points, or 1.92 per cent, to 24,694.35.

Published on: Mar 2, 2026, 12:45:33 IST

Edited by Shivya Kanojia

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Benchmark Indian equity indices opened sharply lower on Monday amid rising crude oil prices triggered by escalating geopolitical tensions in the Middle East.

The 50-share NSE Nifty dropped 533.55 points, or 2.11 per cent, to 24,645.10. (Pexels )

The Sensex fell 1,561.71 points, or 1.92 per cent, to 79,725.48, while the Nifty dropped 484.30 points, or 1.92 per cent, to 24,694.35 at 12:30 pm.

From the Sensex constituents, InterGlobe Aviation, Larsen & Toubro, Eternal, Adani Ports, Asian Paints, UltraTech Cement and Reliance Industries were among the top laggards.

Also read| Sensex down 2,743 points, Nifty 50 well below 25,000 as Iran war ignites stock market

Bharat Electronics was the only gainer in the pack.

Brent crude, the global benchmark, fell 5.38 per cent to $76.79 per barrel.

Middle East conflict drives market volatility

Markets reacted to heightened tensions in the Middle East following a coordinated US-Israeli airstrike in Tehran that killed Iran's Supreme Leader Ayatollah Ali Khamenei early Saturday. Iranian state media confirmed his death on Sunday.

In response, Iran launched missile attacks targeting Israel and several Arab nations, stoking fears of prolonged regional instability.

Soon after the, tensions across the Middle East escalated. Saudi Arabia said Iran launched attacks targeting its capital and eastern regions, but claimed they were repelled. Bahrain reported a missile strike aimed at the US Navy’s Fifth Fleet headquarters. Kuwait said a drone strike near its main international airport injured several employees and troops.

Jordan said it “dealt with” 49 drones and ballistic missiles. Explosions were also reported in Qatar. In Yemen, Iran-backed Houthi rebels pledged to resume attacks on Red Sea shipping lanes and Israel.

Several countries, including Iran, Iraq, Israel, Syria, Kuwait and the UAE, closed their airspace as a precaution.

Asian markets were mixed, with Japan's Nikkei 225 and Hong Kong's Hang Seng index trading lower, while Shanghai’s SSE Composite index remained in positive territory. US markets closed lower on Friday.

“The uncertainty related to the war in West Asia will loom large over the market in the near-term. The major risk from the market perspective is the energy risk arising from the surge in crude,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

FII outflows and DII support

Foreign Institutional Investors (FIIs) sold equities worth ₹7,536.36 crore on Friday, according to exchange data, while Domestic Institutional Investors (DIIs) bought stocks valued at ₹12,292.81 crore.

“For investors, the risk extends beyond energy. Prolonged regional instability could disrupt trade routes, strain supply chains and tighten global financial conditions if inflation expectations re-accelerate,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm.

On Friday, the Sensex had already dropped 961.42 points, or 1.17 per cent, settling at 81,287.19, while the Nifty fell 317.90 points, or 1.25 per cent, to close at 25,178.65.

(With PTI inputs)

ABOUT THE AUTHOR
Shivya Kanojia
Shivya Kanojia is a journalist at Hindustan Times, where she works in the fast-paced digital news ecosystem with a strong sense of editorial judgement and a clear understanding of what makes a story both important and traffic-driven. An alumna of the Indian Institute of Mass Communication (IIMC), Shivya brings a thoughtful balance of news value and audience relevance to her work, ensuring stories resonate beyond the immediate headline. Over the course of her three-year journey in the digital news space, Shivya has worked across a wide range of beats, including politics, civic issues, human-interest features and trending news. This diverse exposure has shaped her ability to approach stories with nuance, adaptability and context, whether she is breaking down complex developments or spotlighting everyday narratives that often go unnoticed. She is particularly drawn to human-interest stories, interviews and explainers that offer depth and clarity, aiming to move past surface-level reporting to explore the people, emotions and circumstances behind the news. Prior to joining Hindustan Times, Shivya worked with Firstpost and Times Now, where she covered a broad spectrum of topics and honed her skills in digital journalism . Outside the newsroom, Shivya enjoys discovering new cafés, drawn to good coffee, cosy spaces and unhurried conversations. Shopping is another pastime she cherishes, not always out of necessity, but often guided by instinct and the simple joy of stumbling upon unexpected finds. Above all, she treasures time spent with loved ones, finding meaning in shared laughter, simple moments and memories that linger long after.Read More

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