Escalating tensions in West Asia have triggered a sharp sell-off in Indian equities this month, wiping out nearly ₹22 lakh crore in investor wealth across trading sessions as crude oil prices surged and global risk aversion intensified.

The total market capitalisation of companies listed on the Bombay Stock Exchange has declined from about ₹463 lakh crore on February 27 to roughly ₹441 lakh crore by March 9.

Analysts say the widening conflict in West Asia has sent oil prices soaring and sparked concerns about inflation, currency weakness and capital outflows from emerging markets such as India.

How severe was Monday's market rout?

Indian benchmark indices fell sharply on Monday, with the BSE Sensex plunging 1,352 points to close at 77,566, while the Nifty 50 declined 422 points to end at 24,028.

The sell-off erased around ₹8.5 lakh crore in investor wealth in a single session.

Only five of the 30 Sensex stocks ended in the green, while 25 closed lower, stressing the broad-based nature of the sell-off.

Top gainers on Monday included:

• Reliance Industries

Major losers were:

• UltraTech Cement

Shares of State Bank of India alone fell over 5%, erasing more than ₹62,000 crore in market value during the sell-off.

How did the sell-off unfold earlier this month?

The correction has been building over several trading sessions rather than occurring in a single-day crash.

March 2: Market capitalisation slipped to about ₹456 lakh crore, translating into roughly ₹7 lakh crore wipe out from late-February levels.

March 4: Selling intensified after the Holi break, pulling total market value down to about ₹447 lakh crore.

March 5: Markets staged a brief rebound, recovering to around ₹452 lakh crore as bargain buying emerged.

March 6: Fresh selling dragged the market cap down again to roughly ₹449 lakh crore.

March 9: The latest rout pushed the figure to about ₹441 lakh crore, marking the lowest level in weeks.

Which sectors have been hit the hardest this week?

The sell-off has been broad-based, with banking, auto, PSU banks and oil marketing companies among the worst performers.

Auto stocks, in particular, came under pressure as higher crude prices raise fears of increased input costs and inflation.

Meanwhile, defensive sectors such as IT and pharmaceuticals held up relatively better, with a few stocks in these segments emerging as gainers despite the broader market slump.

What is driving the volatility in global markets?

The market turmoil has been triggered primarily by the intensifying conflict in West Asia, which has pushed crude oil prices sharply higher and rattled global equities.

Brent crude has surged amid fears of supply disruptions, raising concerns about inflation and economic stability for oil-importing countries like India. Foreign investors have also been pulling money out of Indian equities, adding to the downward pressure on stock prices. FIIs have net sold nearly ₹28,176 crore in Indian equities in March alone, while domestic institutional investors have purchased equities worth ₹41,800 crore to cushion the fall and prevent a steeper correction.