Monday mayhem: Sensex, Nifty fall more than 1% each; key reasons
Among the Nifty constituents, only eight stocks advanced with Bharat Electronics and Hindalco Industries emerging as the top gainers, bucking the market trend
 "Monday mayhem: Sensex, Nifty fall more than 1% each; key reasons")
Stock Market Crash: Stock market benchmark indices Sensex and Nifty fell more than 1 per cent each on Monday, tracking a sharp spike in crude oil prices amid escalating tensions in West Asia. The 30-share BSE Sensex closed 1,048.34 points or 1.29 per cent lower at 80,238.85. During the day, the index tanked 2,743.46 points or 3.37 per cent to 78,543.73. Likewise, the Nifty 50 index lost 312.95 points or 1.24 per cent to end at 24,865.70. In intraday, the 50-share index hit a low of 24,603.50, down 575.15 points or 2.29 per cent.
On the sectoral front, only Nifty Metal and Nifty Pharma managed to give a positive closing. Nifty Auto, Nifty Consumer Durables, and Nifty Oil & Gas cracked more than 1 per cent each. The Nifty Bank index tumbled 689.35 points or 1.14 per cent to finish at 59,839.65.
The weakness also spilled over into the broader markets. Both the Midcap and Smallcap indices closed lower, and the Advance/Decline ratio turned decisively in favour of decliners. The volatility index, India VIX, surged by 25 per cent, signalling a sharp spike in overall market volatility. Among the Nifty constituents, only eight stocks advanced with Bharat Electronics and Hindalco Industries emerging as the top gainers, bucking the market trend. On the flip side, IndiGo and Larsen & Toubro were the notable laggards, dragging the index lower.
Today's selling erased investors wealth by more than ₹6 trillion, dragging market capitalisation of all the BSE listed companies to ₹456.96 trillion from Friday's all India market capitalisation of ₹463.25 trillion.
Here's why stock markets are falling today:
Escalating tensions in West Asia: The correction came after the United States and Israel, on February 28, 2026, launched a joint military offensive against Iran, killing Iranian supreme leader Ayatollah Ali Khamenei. In response, Iran attacked US bases in Bahrain, Kuwait, Qatar, and the UAE.
US President Donald Trump warned that the US will “avenge” the deaths of three US service members who were killed in Iran's missile attack.
VK Vijayakumar, chief investment strategist at Geojit Investments, said 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 rising from the surge in crude," he added.
Crude hits multi-month high: Global crude oil prices jumped to multi-year highs amid concerns around supply disruption, particularly around the strategic Strait of Hormuz. On Monday, Brent crude surged above $82 before easing near $78, while West Texas Intermediate climbed to $75 per barrel. Last checked, oil benchmark Brent Crude was up 6.4 per cent at $77.70 per barrel.
According to a report by Equinomics Research, around 20 per cent of the total global supply of crude oil passes through the Strait of Hormuz, and about 40 per cent of India's oil flows through this Strait. "Therefore, the global economy and hence, global equities will have some setback till some resolution is found for this war. However, we are hopeful that the domestic equity markets will recover," the report said.
Depreciating Indian rupee: The Indian rupee slipped beyond the 91 mark against the US dollar for the first time in a month, pressured by higher crude oil prices and a broader risk-off sentiment in global markets. The currency declined by 28 paise to close at 91.26 per dollar. Analysts believe that the Reserve Bank of India (RBI) may step in to curb excessive volatility and prevent a steep slide. Jigar Trivedi, senior research analyst at IndusInd Securities, noted that the rupee could weaken past the 91.30 level in the wake of escalating tensions in the Middle East, although any sharp downside may be contained by potential central bank intervention.
Expiry day pressure: Tomorrow (Tuesday) is a market holiday, so today is the Nifty 50's weekly expiry. Markets usually see higher trading volumes on expiry day, leading to sharp swings on both sides due to rollover.
According to ICICI Direct, if Nifty sustains below 25,000, it may lead to further weakness. From the weekly expiry perspective, significant Call writing at ATM and OTM strikes signifies limited upside.
| Sensex Performance Before and After Major Geopolitical Conflicts | |||
| Conflict | Start Date | One Week Before (%) | One Week After (%) |
| Russia–Ukraine War | Feb 24, 2022 | -1.32 | -3.18 |
| Israel–Hamas Conflict | Oct 7, 2023 | 0.74 | 0.43 |
| India–Pakistan Conflict | May 7, 2025 | 0.57 | 0.72 |
| US–Iran War | Feb 28, 2026 | -1.84 | Ongoing |
| Source: BSE |
De-escalation hopes aid rebound:
However, the benchmarks staged a solid recovery and the Sensex was trading at 80,030.09 levels, down 1,257 points or 1.55 per cent at 12 PM. The Nifty50 was down 387.25 points or 1.54 per cent at 24,791.65 levels.
G Chokkalingam, founder of Equinomics Research, said the recovery was on expected lines as the ongoing US-Iran tensions are unlikely to escalate for long.
"Roughly 90 per cent of Iran's own oil exports pass through the Strait of Hormuz each year, and that represents approximately 83 per cent of all Iranian exports. It would be very difficult for Iran to prolong this war. Internal conflicts within Iran may possibly pave a way for some compromised resolutions, and other major participants’ allies in this war are also likely to suffer quite badly," the Equinomics report said.
According to Chokkalingam, while the tensions between Iran and Israel may continue, beyond a certain point, the intensity would be difficult to stretch. Economic damage, rising casualties and internal pressures would act as natural constraints. Amid this, he sees scope for further recovery in the near term.
Nifty technical view
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, Nifty formed a long bear candle on the daily chart during Friday's session that indicated a sharp breakdown of a descending triangle type pattern. The huge opening upside gap of 3rd Feb has almost been filled around 25100 (left with a small margin).
"This is not a good sign. The underlying trend of Nifty is sharply down. The overall negative chart pattern signals further downside to 24700 levels in the near term," he had said.