The ongoing US–Iran war continued to weigh on the Indian stock market on Monday, March 9, as investor sentiment further deteriorated amid a relentless surge in crude oil prices. A falling domestic currency and sustained outflows from overseas investors also dragged the key benchmark indices to an 10-month low.
Amid heavy panic selling following escalating tensions between the US and Iran, the Nifty 50 crashed 1.86% to 23,994, while the Sensex fell 1.77% to 77,521. At one point, both indices had declined nearly 3%. Even though they recovered from the day’s low, they are still trading at their lowest levels since May 2025.
The broader markets also faced similar pressure from the Street, with the Nifty Midcap 100 and Nifty Smallcap 100 indices crashing by up to 2.4%.
The situation in the Middle East is worsening with each passing day, and the war has already started showing its impact on the global economy. Crude oil prices have surged nearly 64% since the start of the conflict, while gas prices have also been rising sharply.
The war, which initially began between three nations, has now drawn in several major Middle Eastern countries, leading to widespread chaos in the region, with US-Israel and Iran vowing to continue attacks on each other and resulting in significant loss of lives.
Surging crude prices and bond yields drag banks, OMCs and cement stocks lower
PG Electroplast was among the worst hit, with the stock crashing 15% to ₹519 apiece after the company informed investors about a shortage of gas under its Gas Sale and Purchase Agreement. Sapphire Foods India was the top laggard, falling 9.6% to ₹174.80 apiece. Other QSR stocks such as Devyani International also dropped 5.9% to ₹110 apiece.
Tejas Networks, one of the recent top performers, also failed to escape the sell-off, falling 8% to ₹428 apiece. All three OMC stocks—Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation—closed lower by up to 6% amid the relentless rise in crude prices, which could potentially hit their auto fuel marketing margins.
Banking stocks, especially PSU lenders, witnessed a sharp decline in their share prices amid a surge in India’s government bond yields. The losses in the pack were led by the Bank of Maharashtra, which shed 6.3% to ₹65.7 apiece.
It was followed by Bank of India, Union Bank of India, Indian Bank, Canara Bank, State Bank of India, and UCO Bank, all crashing by over 4%. Ircon International shares also came under pressure, falling 5.6% to ₹138.90 apiece following a two-day winning run.
Major cement stocks such as JK Cement, The Ramco Cements, Shree Cement, UltraTech Cement, Kesoram Industries, Nuvoco Vistas Corporation, Orient Cement, India Cements, ACC, and Ambuja Cements fell between 3.2% and 6.8%.
Overall, more than 100 constituents of the Nifty 500 index fell over 3%, reflecting a widespread sell-off in the Indian stock market.
Emcure Pharma, Aadhar Housing among few gainers in weak market
While winners are rare in a falling market, a few stocks managed to buck the trend. Emcure Pharmaceuticals topped the gainers’ list, climbing 7.4% to ₹1,521 apiece, while Aadhar Housing Finance rose 5.9% to ₹481 apiece.
Affle 3i was another top performer in the pack, surging 3% to ₹1,391 apiece. Sugar-related stocks such as Praj Industries and Balrampur Chini Mills rose 2.7% and 2.5%, respectively. Avenue Supermarts shares advanced 2.3% to ₹3,966 apiece.
Select heavyweight stocks such as Wipro and Reliance Industries also ended the session in positive territory, gaining 1.7% and 1.4%, respectively.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
