West Asia Conflict Jolts D-Street, Investor Wealth Drops ₹33.68 Lakh Crore As Sensex Falls Over 8% This Month

Mumbai: The ongoing conflict in West Asia has severely affected Indian stock markets, wiping out Rs 33.68 lakh crore of investor wealth in just two weeks.

Since the start of the conflict, the total market capitalisation of companies listed on the BSE has fallen from earlier levels to Rs 4,29,82,252.27 crore, or about USD 4.65 trillion. The sharp fall reflects growing global uncertainty and nervousness among investors.

The decline in wealth comes as tensions in the Middle East continue to escalate with no signs of a quick resolution.

Sensex Falls Sharply

The benchmark BSE Sensex has fallen sharply during this period. Since February 27, the 30-share index has dropped 6,723.27 points, or about 8.27 per cent.

On March 13, the index continued its decline and ended the session significantly lower. The Sensex closed at 74,563.92, down 1,470.50 points or 1.93 per cent.

During intra-day trading, the index had plunged even further by 1,579.82 points before recovering slightly by the close.

Conflict Pushes Oil Prices Higher

The market weakness has been mainly driven by the growing conflict in West Asia. The situation escalated after the US and Israel launched military strikes on Iran on February 28.

Iran responded with attacks targeting Israeli and American military bases across several Gulf countries. The conflict has also disrupted global energy supplies.

Iran has effectively blocked the Strait of Hormuz, an important shipping route that carries nearly 20 per cent of the world’s oil and LNG shipments.

As a result, Brent crude oil prices surged to around USD 100 per barrel, raising fears of higher inflation and economic slowdown.

Several Sectors Under Pressure

Rising crude oil prices and global uncertainty have hit several sectors in the stock market.

Oil marketing companies faced heavy selling during the session. Shares of HPCL fell about 4 per cent, while IOC dropped 2.28 per cent and BPCL declined by 2.19 per cent.

Paint companies also came under pressure, with Asian Paints, Berger Paints, Kansai Nerolac and Shalimar Paints closing lower.

Market experts say investors remain cautious due to geopolitical tensions, rising oil prices and continued foreign fund outflows, which are keeping pressure on equity markets.