Impact of War: Investor Wealth Worth Lakhs of Crores Wiped Out

Amid growing tensions in West Asia, Indian investors who had been placing strong confidence in one of the world’s fastest-growing major economies are facing an unexpected shock in the stock markets. Despite favorable factors such as political stability, strong domestic consumption and tax relaxations, the ongoing conflict involving Iran, Israel and the United States has significantly impacted market performance. Since February 28, investor wealth worth approximately ₹48.29 lakh crore has been wiped out. During the same period, benchmark indices Sensex and Nifty have declined by over 10%. Gold prices have shown high volatility, while the Indian rupee has fallen to fresh lows.

The market sentiment was further weakened by reports of Israeli strikes on Iran, a surge in Brent crude prices to $112 per barrel, continued selling by foreign institutional investors, and the depreciation of the rupee. As a result, the total market capitalization of BSE-listed companies dropped by ₹13.9 lakh crore in a single day, settling at ₹415.21 lakh crore.

The Sensex closed 1,836 points lower at 72,696, while the Nifty fell by 601 points to end at 22,512. Most of the 30 constituent stocks on the Sensex ended in the red. However, some signs of relief emerged later in the day, as crude oil prices declined following developments involving the United States and global markets opened with modest gains.