Iran-Israel War Impact on Share Market: Israel and America attacked Iran on February 28, 2026. That means one month has passed since the war. During this period, the biggest sell-off till date was seen in the Indian stock market. In the last trading session of last week on Friday, the index fell by 1690 points or 2.3 percent and closed at the level of 73583 with the shares of Reliance Industries, which has a heavy weight in the Sensex, falling by 4.6 percent.
Why did RIL shares fall?
According to market experts, this huge fall in the share price of RIL came due to many reasons – imposition of windfall tax on exporters of petroleum products by the government, fall of rupee to record low against dollar, increase in bond yield and heavy selling by foreign funds and all these reasons were due to the ongoing war in West Asia, due to which this fall in shares was seen on Friday.
How much loss did investors suffer?
According to exchange data, investors have suffered a loss of about Rs 9 lakh crore due to this selloff and now the market capitalization of BSE has come down to Rs 422.2 lakh crore. BSE data showed that foreign funds were once again the main sellers of shares and their net outflow stood at Rs 4367 crore.
Ever since the war between America, Israel and Iran started, the Sensex has fallen by a little more than 7700 points or 9.5 percent, while investors have suffered a loss of about Rs 41.4 lakh crore. According to NSDL and BSE data, during this period, foreign portfolio investors (FPIs) have withdrawn a little more than Rs 1.1 lakh crore from the domestic stock market.
Which sector is affected the most?
Heavy selling was seen in auto and finance stocks like Maruti Suzuki and Bajaj Finance. Reliance Industries (RIL) also had a big fall of 4.6 percent in just one session. However, during this period, some IT and pharma sector stocks like Tech Mahindra and Sun Pharma kept the stock market under control amid volatility. Market experts say that until the war ends completely, there is a possibility that there will be fluctuations in the market.
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