$447 bn wiped off Dalal Street amid war

The Indian stock market is facing sharp turbulence as the ongoing Middle East conflict triggers a global risk-off sentiment.

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Nearly $447 billion has been erased from India’s market capitalisation—close to the $508 billion loss seen during the COVID-19 crash—sparking investor anxiety and heightened volatility.

Geopolitical tensions

Fears of a broader conflict involving Iran and the US-Israel alliance have pushed crude oil prices above $100 per barrel, intensifying concerns over inflation, energy security and India’s trade deficit. Risks around the Strait of Hormuz, a critical oil route, have further unsettled markets. On March 13, 2026, the Sensex plunged over 1,300 points in a single session and is now down more than 10% from its recent peak. The Nifty 50 has also slipped toward one-year lows.