Middle East tensions push Indian stocks down as oil surges

Larsen and Toubro

02/03/2026 06:41

** Indian shares tumble on Monday as war in the Middle East raises crude oil prices, a major risk for the net energy importing economy

** The rupee INR=IN falls 0.4% against the dollar, while Indian bond yields also decline

** Benchmarks Nifty .NSEI and Sensex .BSESN drop 1.5% each, with all 16 major sectors logging losses

** Broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 also fall 1.5% each, extending the risk-off move

** Oil marketing companies, tyre makers, paint manufacturers, aviation firms, and chemical makers dip on higher crude, shipping disruptions and airspace curbs

** Analysts led by Mahesh Nandurkar at Jefferies say impact is likely short-term, but warn prolonged conflict and sharp energy-price jump would be major negatives for Indian markets

** Key strategic chokepoint the Strait of Hormuz, which links Persian Gulf to the Arabian Sea, closed to navigation by Tehran after U.S.-Israeli strikes kill Iran's Supreme Leader over the weekend, disrupting oil flows

** Crude surges 7.2% to $78.1 per barrel, a negative shock for major importers such as India O/R

** Larsen & Toubro LART.NS slides 6%: Middle East a key market for the firm across energy, infrastructure, and renewables sectors

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))