Since the outbreak of the West Asia conflict, Dalal Street has witnessed one of its steepest declines since the pandemic. The Sensex has dropped 9,339 points (11.48%), wiping out ₹51 lakh crore in investor wealth. Rising crude oil prices and record foreign institutional investor (FII) outflows have intensified the rout.
Introduction
The escalation of the West Asia war has rattled global markets, with India bearing the brunt of heightened volatility. Investors are fleeing riskier assets, while crude oil’s surge is adding inflationary pressures to the domestic economy.
Market Performance
The BSE Sensex fell over 11% since February 28, 2026, marking one of the sharpest monthly declines in recent years. Market capitalization eroded by ₹51 lakh crore, reflecting widespread investor losses.
Key Drivers
Crude oil prices surged due to supply disruptions, raising import costs for India.
FII outflows intensified, with foreign investors pulling billions from equities.
Risk-off sentiment dominated, as global investors shifted to safe-haven assets like gold and US treasuries.
Investor Impact
Retail and institutional investors alike faced heavy losses, with sectors such as banking, IT, and energy hit hardest. Analysts warn that volatility may persist until geopolitical tensions ease and oil prices stabilize.
Key Highlights
• Sensex plunged 9,339 points (11.48%) since Feb 28, 2026
• Investors lost nearly ₹51 lakh crore in wealth
• Crude oil surge added inflationary pressures
• Record FII outflows deepened market rout
• Analysts expect volatility until geopolitical tensions ease
Sources: Free Press Journal, Rediff Money, The Print, The Economic Times, Millennium Post