Indices trade with major losses amid U.S.-Iran tensions; media share tumble

The key equity benchmarks traded with steep losses in the early afternoon, s escalating clashes between the US, Israel and Iran lifted crude oil prices to their highest in 19 months and intensified investor risk aversion. Brent crude climbed strongly on fears of supply disruptions through the Strait of Hormuz, adding to inflation concerns and global market sell-offs. Nearly all major Nifty sectoral indices traded lower in the early hours.

The Nifty traded below the 24,400 level. Media shares declined after advancing for previous trading sessions.

At 11:30 ST, the barometer index, the S&P BSE Sensex, slumped 1,501.02 points or 1.87% to 78,737.83. The Nifty 50 index tanked 495.85 points or 1.99% to 24,372.15.

 

The broader market underperformed the frontline indices. The BSE 150 MidCap Index declined 2.60% and the BSE 250 SmallCap Index fell 2.58%.

The market breadth was weak. On the BSE, 861 shares rose and 3,184 shares fell. A total of 186 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, zoomed 23.04% to 21.70.

Brent crude, the global oil benchmark, climbed 1.95% to USD 83.35 per barrel.

Economy:

Indias HSBC Services PMI declined to 58.1 in February from 58.4 in January and was lower than the flash estimate of 58.4. New business expanded at its slowest pace since January 2025, while input cost inflation rose to a two-and-a-half-year high, driven by higher food, energy and labour expenses. International sales increased at the fastest pace since August. Employment rose for the second consecutive month, with hiring accelerating from January. Business confidence strengthened to a one-year high. Meanwhile, the HSBC Composite PMI rose to 58.9 in February from 58.4 in January, marking a three-month high.

US-Israel-Iran war enters Day 5:

Equity markets tumbled on Wednesday as the war between the US-Israel alliance and Iran entered its fifth day on March 4, deepening concerns over regional stability and global energy supplies.

On Day 4, Israel carried out fresh airstrikes targeting Iranian missile launchers and a nuclear research facility. In retaliation, Iran reportedly targeted US embassies in the Gulf region and disrupted key energy supply routes, escalating fears of a broader conflict.

With both sides intensifying military operations and diplomacy taking a back seat, US President Donald Trump said the conflict could last four to five weeks, signaling prolonged uncertainty for global markets.

IPO Update:

The initial public offer (IPO) of Sedemac Mechatronics received bids for 53,394 shares as against 56,32,899 shares on offer, according to stock exchange data at 11:25 IST on Wednesday (4 March 2026). The issue was subscribed 0.01 times.

The issue opened for bidding on 4 March 2026 and it will close on 6 March 2026. The price band of the IPO is fixed between Rs 1,287 and 1,357per share.

Buzzing Index:

The Nifty Media index fell 4.12% to 11,763.80. The index rose 0.24% in the previous trading session.

Tips Music (down 6.09%), Sun TV Network (down 5.35%), Nazara Technologies (down 4.16%), Saregama India (down 3.18%), Network 18 Media & Investments (down 2.88%), Zee Entertainment Enterprises (down 2.24%), PVR Inox (down 2.17%), D B Corp (down 1.96%), Hathway Cable & Datacom (down 1.75%) declined.

Stocks in Spotlight:

Larsen & Toubro fell 6.38% as escalating Middle East tensions raised concerns over project execution risks.

The decline comes amid the intensifying Iran conflict following coordinated U.S.Israeli airstrikes on Iranian military and nuclear targets. The strikes reportedly killed Supreme Leader Ali Khamenei and triggered retaliatory missile and drone attacks by Iran. Iran launched strikes on Israel and several U.S. bases located across Gulf countries. The conflict has disrupted shipping routes and energy flows across the Middle East. The turmoil has also pushed crude oil prices higher and increased regional business uncertainty.

Bharat Coking Coal rose 0.47%. The company announced that Rajesh Kumar (Director Finance) has been appointed as Chief Financial Officer (CFO) with immediate effect, replacing M.S. Raju, GM (Finance).

Silver Touch Technologies fell 3.62%. The company said that it has secured a project for designing and developing the website and digital platform for the Centre for Integrative Medicine & Research (CIMR) at AIIMS New Delhi.

Global Markets:

Asian market traded lower on Tuesday as South Korea led the losses on Wednesday as the war in the Middle East continued unabated.

South Koreas Kospi plunged 8% Wednesday, on track for its worst day since August 2024, and extending a steep selloff from the previous session. The Korea Exchange temporarily halted trading for the Kospi index on Wednesday. A circuit breaker was also activated on the Kosdaq, which also fell by over 8%.

A senior commander from Irans Revolutionary Guard said on Monday that the critical artery had been shut and warned that any vessel attempting to transit the waterway would be targeted, according to Iranian media.

U.S. President Donald Trump reportedly said Tuesday afternoon that the U.S. Navy will escort tankers through the Strait of Hormuz, if necessary.

Investors in the region will also be watching an annual parliamentary meeting by Chinas policymakers that kicks off later in the day.

The gathering, dubbed the Two Sessions, consists of a consultative congress that will start later in the day, and a National Peoples Congress due to open Thursday. Chinese Premier Li Qiang is set to announce a series of economic targets at the NPC, which had largely been decided at a December meeting.

Meanwhile, Chinas factory activity faltered in February as manufacturers paused production and cargo shipments to celebrate an extended holiday, an official survey showed on Wednesday.

The official manufacturing purchasing managers index fell to 49 in February, according to the National Bureau of Statistics, missing the widely reported forecast of 49.1.

Overnight in the U.S., socks had another wild session as concerns around a prolonged U.S.-Iran conflict rattled markets.

The Dow Jones Industrial Average lost 403.51 points, or 0.83%, and ended at 48,501.27. The S&P 500 slipped 0.94% to close at 6,816.63, while the Nasdaq Composite shed 1.02% to settle at 22,516.69.

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