Equities Hit Six-Month Low Amid West Asia Conflict and Oil Surge

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

India stocks fall, rupee fall

By Dehuti Jani

March 2, 2026 at 11:40 AM IST

Indian equity benchmarks tumbled on Monday, with the BSE Sensex falling to its lowest level since September 2025, as the escalating West Asia conflict drove crude prices higher and triggered a broad flight to safe-haven assets including gold and the US dollar. The Nifty50 dropped 1.24% to a one-month low of 24,865.70, while the Sensex shed 1.29% to 80,238.85. India VIX surged 25.01% to 17.13, reflecting a dramatic spike in near-term volatility expectations. The stakes are particularly high for India given its deep economic ties to the region — the West Asia supplies approximately half of India's crude imports, accounts for 40% of its remittances and absorbs 17% of its exports, according to Jefferies and BofA Securities. A sustained rise in oil prices and trade disruption risks driving up import costs, weakening the rupee and stoking inflation, squeezing both businesses and households.

Broader markets underperformed the benchmarks, with the Nifty Midcap 100 and Nifty SmallCap 100 declining 1.58% and 1.75% respectively, as selling was widespread across the market. Auto stocks bore the brunt of the sectoral selloff, with Nifty Auto falling 2.20% to become the worst-performing index of the day, while oil and gas stocks also weighed heavily on sentiment. Nifty Metal was a rare bright spot, edging 0.24% higher to outperform all other sectoral indices. Indices pared some losses from intraday lows as the session progressed, but the overall tone remained firmly risk-off, with investors broadly unwilling to take on fresh positions amid the rapidly evolving geopolitical situation.

Top Movers of the Day

Yatra Online plunged 14% to ₹102.40 amid West Asia tensions. The stock is down 28% in a week and nearly 49% from its 52-week high of ₹201.85. Broader travel-related counters remained weak as geopolitical risks weighed on sentiment.

Ola Electric tumbled 16% as investors continued to question its growth outlook.

Swiggy slipped 5% to a fresh all-time low of ₹285.85, breaching its previous low of ₹297 hit in May 2025.

Sahaj Solar hit a 52-week low of ₹108.20, down 11.2% intraday before trimming losses to ₹117.40 (-3.8%).

Clean Max Enviro Energy debuted weak at ₹960 on the NSE, a 9% discount to its issue price of ₹1,053. It later traded nearly 4% below its listing price. On the BSE, it opened at ₹952 (-9.6%).

Paras Defence and Space Technologies surged over 13% intraday. Astra Microwave Products and Paras Defence gained 5%.

Bharat Dynamics, Data Patterns India, and MTAR Technologies rose around 3%.

Tejas Networks extended its rally, hitting ₹502.95 (+15.4%) intraday and trading around ₹491 (+12.7%). The stock has surged 55% in four sessions, with volumes over 90 million shares.

TVS Motor Company reported 31% YoY growth in February sales at 529,308 units, supporting the stock in an otherwise weak market.

Shree Ram Twistex listed at ₹68 on the NSE, a steep 34.62% discount to its issue price of ₹104.

Futures & Options
Nifty March 2026 futures closed at 24,988, a 122.30-point premium over spot Nifty, which fell 312.95 points (1.24%) to 24,865.70. The narrowing premium reflects weaker sentiment due to West Asia tensions. India VIX jumped 25.01% to 17.13, indicating higher volatility. HDFC Bank, Larsen & Toubro, and Reliance Industries led F&O trading on the NSE. The contracts expire on 30 March 2026.

Bonds
Indian government bond yields rose on Monday as surging oil prices following the outbreak of military conflict in the West Asia drove investors away from risk assets. The benchmark 6.48% 2035 bond yield climbed to 6.6753% from 6.6601% at Friday's close, as the prospect of a prolonged conflict in the region weighed on sentiment across asset classes. The broader market selloff was reflected across assets, with the rupee falling 0.4% to 91.35 per dollar and equities declining around 1%.

Forex
The Indian rupee fell to its weakest level in a month on Monday, dropping 0.5% to close at 91.47 per dollar in its steepest single-session decline in over a month, as the escalating military conflict in the West Asia kept global financial markets on edge and drove demand for safe-haven dollars. The cost of hedging against further rupee depreciation also rose through the session. Losses were partially cushioned by dollar sales from foreign banks and likely intervention by the RBI, traders said, which helped prevent a sharper slide in the currency.

Crypto
Crypto markets were down Monday, though Bitcoin stayed steady between $66,000 and $67,000 after rebounding from a weekend low of $63,000. Bitcoin fell 0.99% to $66,626 with a market cap over $1.33 trillion. Analysts observed it acting more like a safe-haven asset than a tech stock, in line with its "digital gold" reputation. Futures funding rates dropped to -6%, suggesting traders betting against Bitcoin paid high premiums and hinting at a possible bounce. Ethereum traded near $1,950 as markets tried to stabilise amid volatility.

US Stock Futures
US stock futures plunged on Monday as military strikes by the US and Israel on Iran jolted global markets and triggered a broad retreat from risk assets. Dow Jones Industrial Average futures tumbled 1.6% or over 800 points, S&P 500 futures sank 1.7%, and Nasdaq 100 futures dived 2%, as the sharp escalation in West Asia conflict sent investors rushing toward safe-haven assets and away from equities. Oil prices surged simultaneously, compounding concerns over the potential economic fallout from a widening geopolitical conflict in a key energy-producing region.

US Treasury Notes
US Treasury yields rose Monday as West Asia tensions pushed oil prices higher, stoking inflation concerns and lowering expectations for imminent Fed rate cuts. The 10-year yield increased by about 2 basis points to 3.97%, while the 2-year yield climbed to 3.42%. Markets now anticipate the first potential rate cut no earlier than July.

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