Rs 11 lakh crore wiped out! How US-Israel-Iran war is hitting stock market investors hard
Times of India
by TOI BUSINESS DESKMarch 3, 2026
AI-Generated Deep Dive Summary
The escalating tensions between Iran and the US-Israel alliance have sent shockwaves through Indian stock markets, causing a significant loss of Rs 11 lakh crore in market value. Investors are rushing to safe-haven assets as geopolitical uncertainties mount, driven by recent strikes on Iranian sites including Khamenei's compound and nuclear complexes. The benchmark Sensex and Nifty indices have fallen over 2.5% each in two consecutive trading days, with the Sensex dropping below the 81,000 mark—a rare occurrence—and the Nifty falling below its crucial 25,000 support level.
Market experts anticipate continued volatility in the near term due to heightened tensions and lack of diplomatic progress. While short-term corrections are unsettling, long-term fundamentals remain intact for Indian equities. Domestic macroeconomic indicators such as net GST collections (Rs 1.71 lakh crore in January) and expected earnings recovery in FY27 suggest resilience. However, factors like rising crude oil prices, disruptions in IT stocks due to AI-related issues, and yield curve dynamics in banking sectors pose challenges.
Despite the turmoil, experts believe that India's growth trajectory is unlikely to be disrupted by short-term market fluctuations. The country continues to be one of the fastest-growing major economies, with stable earnings expectations and sustained systematic investment plan inflows supporting economic resilience. Any potential correction could further rationalize valuations while maintaining India's position as a key player in global markets.
The impact on Indian stock markets is part of broader global spillovers, primarily through oil price spikes and export-import dependencies. While the situation remains headline-driven, investors are advised to focus on quality balance sheets and earnings visibility, staying selective amid uncertain geopolitical developments.
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Originally published on Times of India on 3/3/2026