India's Sensex falls 1.4 to 79,120.74 in provisional closing

India's Sensex falls 1.4 to 79,120.74 in provisional closing

India’s Sensex Falls 1.3% to 80,238.85 Amid Geopolitical Tensions

India’s BSE Sensex closed 1.3% lower at 80,238.85 on Monday, marking its lowest level since September 2025 and extending losses for the third consecutive session. The index dropped 1,048 points (1.29%) to 80,239, with key stocks like Larsen & Toubro (-5.24%), Adani Ports (-3.43%), and Maruti Suzuki (-3.29%) leading the decline. Rising geopolitical tensions in the Middle East, fueled by renewed U.S. and Israeli strikes on Iran and Tehran’s retaliation, drove crude oil prices higher, intensifying concerns over inflation and import costs.

The selloff affected nearly all sectors, with financials, industrials, energy, and aviation companies bearing the brunt. Aviation stocks, including IndiGo (-4.3%), saw some of the steepest declines. Other major laggards included Tata Steel (-4.6%), Reliance Industries (-3.4%), and UltraTech Cement (-3.6%). Foreign portfolio investor outflows accelerated as uncertainty over economic growth prospects mounted.

Despite the broad downturn, defense stocks showed relative resilience. Bharat Electronics rose 1.2%, reflecting cautious optimism in defense-related sectors amid regional tensions.

Markets will remain closed on Tuesday, March 3, for the Holi holiday, with trading resuming on Wednesday. Investors will await the release of India’s HSBC final composite and services PMI data, with the services index expected to inch up to 58.6 in February from 58.5 in January.

The prolonged decline underscores vulnerabilities in equity markets amid volatile global conditions. Analysts note that sustained geopolitical risks and oil price fluctuations could further pressure investor sentiment in the near term.

(Trading Economics): Trading Economics and Reuters.