India's stock market has witnessed its steepest slide in six years due to the escalating Iran war, resulting in a loss of over ₹25 lakh crore in investor wealth since the conflict began.
The 30-share S&P BSE Sensex fell by as much as 3.16% or 2,494.35 points to 76,424.55 points, while the wider NSE Nifty 50 shed up to 3.07% to an intraday low of 23,697.80 points.
The turmoil is fueled by crude oil prices, which have surged to test $120/barrel levels, adding roughly 40 basis points to India's current account deficit for every $10 rise in oil.
Foreign institutional investors have been relentless sellers, pulling out roughly ₹21,000 crore from Indian equities between 2 and 6 March, while domestic institutional investors have provided some cushion, absorbing a portion of the FII outflows.
Analysts warn that the pain could deepen, with oil at $120 per barrel potentially pushing India's fiscal deficit 30–40 basis points wider than budgeted, forcing the government to trim capital expenditure or subsidise fuel.
