The ongoing geopolitical tension in West Asia has badly affected the Indian stock market. Since February 28, there has been a huge decline of about ₹51 lakh crore in the wealth of investors on Dalal Street. During this period, BSE’s main index Sensex fell by 9,339.64 points or 11.48 percent. In the increasing risk environment, investors turned towards safer options, due to which a sharp selloff was seen in the market. The rise in global markets and crude oil prices has further increased the concern of investors.
The total market capitalization of companies came to
The total market capitalization of BSE listed companies has declined to ₹4,12,41,172.45 crore. This month there has been a huge decrease of ₹ 51,09,498.82 crore. Market experts say that the current decline is mainly due to external factors rather than domestic factors. Ponmudi R, CEO of Enrich Money, said, “High crude oil prices, increasing geopolitical risks in the Middle East and continuous selling by foreign investors have created a ‘risk-off’ environment in the market. The Sensex has fallen 14,211.47 points or 16.49 percent from its all-time high of 86,159.02.
Brent crude price at $ 117.46 per barrel
The price of global oil benchmark Brent crude has increased by 4.15 percent to $ 117.46 per barrel, due to which inflation and economic pressure are expected to increase. Foreign institutional investors (FIIs) have withdrawn more than ₹1 lakh crore from the Indian market in the month of March, which is the largest monthly outflow in the last several years. Tension in West Asia and weakness of the rupee further intensified this selling. Pabitro Mukherjee, head of technical research at Bajaj Broking, said that the risk aversion in the market in the four weeks following this conflict was the highest seen since the Covid crisis of 2020.
constant pressure on the market
Selling by foreign investors has been the main reason for this weakness. Siddharth Khemka of Motilal Oswal Financial Services said that the ongoing tensions in West Asia, especially the increasing conflict between US-Israel and Iran, are continuing to put pressure on the market and its impact is spreading to other regions. On the last trading day of the financial year 2025-26, both Sensex and Nifty closed with a decline of more than 2 percent.