Domestic equity markets opened the week on a turbulent note on Monday, March 2, 2026, as escalating tensions in the US–Israel–Iran war unnerved investors. Benchmark indices began trade with a sharp gap-down opening, reflecting heavy selling pressure right from the opening bell.
The BSE Sensex plunged as much as 2,743.46 points, or 3.37 per cent, during early trade to hit an intraday low of 78,543.73. The Nifty 50, too, tumbled up to 533.55 points, or 2.12 per cent, to touch a low of 24,645.10 for the day.
The benchmark indices, however, later recovered some of the initial losses. As of 1:00 PM, Sensex was down 1,549.05 points, or 1.91 per cent, at 79,738.14, and Nifty 50 was down 478.55 points, or 1.90 per cent, at 24,700.10.
In the Nifty 50 pack, Larsen & Toubro (L&T), InterGlobe Aviation, and Adani Ports dragged the index the most, falling between 5-7 per cent. Adani Enterprises, Jio Financial Services, Maruti Suzuki India, Asian Paints, Tata Motors Passenger Vehicle, Eicher Motors, Mahindra & Mahindra, and Bajaj Auto were also among the top losers, with each falling over 3 per cent.
On the other hand, Bharat Electronics, upstream oil company ONGC, pharma major Sun Pharma, and Bharti Airtel bucked the trend, trading in green, as of the time of writing.
Meanwhile, the India VIX index, often called the market’s “fear gauge”, climbed as much as 26 per cent to 17.29 level. The index measures the market’s expectation of volatility over the near term, based on options prices. A spike in its levels typically indicates that traders are anticipating bigger swings in stock prices.
All Sectors Trade Deep In Red
Selling pressure was broad-based across sectors, as all major sectoral indices were trading firmly in the red, as of the time of writing.
Nifty Oil & Gas emerged as the biggest laggard, trading 1.80 per cent lower at the time of writing, as investors reacted to concerns over the sharp jump in crude oil prices.
The Brent crude oil futures for May delivery spiked as much as 12.38 per cent to $81.89 per barrel during intraday trade, hitting a 13-month high. Similarly, West Texas Intermediate (WTI) crude oil futures for April delivery climbed up to 11.89 per cent to $74.99 per barrel, touching its seven-month high level.
This was one of the biggest single-day gains for these benchmarks in recent months, as investors grew nervous over the potential closure of the Straight of Hormuz, a critical transit route for a significant portion of the world’s crude shipments. The narrow passage serves as the main export route for crude shipments from Iran, Iraq, Kuwait, Qatar and the United Arab Emirates. More than 20 per cent of global oil and liquefied natural gas exports transit through this corridor.
Financials were also under strain. Nifty PSU Bank, Nifty Private Bank and Nifty Financial Services each declined more than 1 per cent.
Nifty Auto, Nifty Realty and Nifty Consumer Durables tumbled over 1 per cent each. Even defensive sectors like Nifty Pharma and Nifty Healthcare were down more than 1 per cent, and Nifty FMCG, which is traditionally seen as a safe haven during periods of uncertainty, slipped nearly 1 per cent.
Nifty IT and Nifty Bank also traded lower by about 0.90 per cent each.
All the sectoral indices began the session with major gap-down, however, they quickly staged a partial recovery, trimming some of the initial damage as bargain hunting emerged at lower levels.
What Should Investors Do
At a time when global cues are turning uncertain and volatility is rising, analysts advise market participants to tread carefully. Any knee-jerk reactions could prove costly at this juncture. Analysts say this is not the time for aggressive bets, but for a measured and disciplined approach.
According to market experts, corrective phases often shake out weak hands but also create selective buying opportunities in fundamentally sound companies.
"Amid global uncertainties and heightened volatility, traders are advised to remain disciplined and highly selective, prioritising fundamentally strong stocks during corrective phases," advised Hitesh Tailor, research analyst at Choice Equity Broking.
Rajeev Sharan, head of criteria, model development and research at Brickwork Ratings, said, "The conflict premium will ease only when there is clarity on leadership in Tehran, credible channels for de escalation, and assurance that vital oil routes such as the Strait of Hormuz remain open."
