Market Sentiment Plunges Amid US-Iran War Tensions

Market Overview

The Indian stock market experienced a sharp decline in sentiment on Monday, March 2, amidst growing tensions between the US and Iran. The Sensex plunged 2,700 points at the opening but later pared most of its losses, trading 1,000 points lower at 10:30 am. The Nifty 50 benchmark hovered near 24,850 at the same time.

Economic Impact

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The market's anxiety stems from the sharp rise in crude oil prices and the potential economic fallout of a prolonged war in the Middle East. Elevated crude oil prices are a major negative for the Indian economy, increasing input costs and eroding profitability for companies. A war could also disrupt the normal operations of companies operating in the region, including those with significant exposure to the Middle East.

Companies with Significant Exposure to the Middle East

Larsen & Toubro (L&T)

• International revenues contributed 54% of total revenues in Q3FY26.
• The company achieved order inflows of ₹3,56,631 crore during FY25, driven by strong investment momentum in the Middle East and capex push from the Government of India.
• The stock crashed 7.5% in intraday trade on the BSE on Monday.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Tata Consultancy Services (TCS)

• Revenue from the MEA region rose by 8.3% year-on-year in Q3FY26, contributing significantly to overall revenue growth.
• The company's share price declined over 3% to hit its 52-week low of ₹2551.55.

KEC International

• The company has several projects in the Middle East and is strategically focusing on expanding its Middle East footprint.
• It secured its third international order for a pipeline laying project in the Middle East.
• The stock crashed nearly 12% to hit its 52-week low of ₹517.90 on the BSE on Monday.

VA Tech Wabag

• The company is exploring opportunities and technologies to digitalise its other plants and networks in India and the Middle East.
• It is currently executing a 200 MLA Al Haer STP project in Saudi Arabia and a 300 MLD Yanbu Mega Desalination Plant in Saudi.
• The stock crashed by over 12% in intraday trade on the BSE on Monday.

Kalyan Jewellers

• The company has major exposure to the Middle East region, with revenue increasing by nearly 28% in Q3FY26.
• The company's share price dropped more than 4% in intraday trade on the BSE.