Investors lose ₹21 lakh crore in 3 sessions as Sensex, Nifty slide over 4%; 719 stocks hit 52-week lows

Dalal Street remained under intense selling pressure on March 4, with Indian equity markets extending their slide for a third straight session as escalating geopolitical tensions in the Middle East and a sharp surge in crude oil prices triggered a full-blown risk-off wave across global markets. In just three trading sessions, investors have seen over ₹21 lakh crore of wealth evaporate, with the total market capitalisation of BSE-listed companies slipping to ₹446.98 lakh crore.

The Sensex has plunged 3,133 points, or 4%, over the past three sessions, while the Nifty has tumbled 1,016 points during the same period. Broader markets bore the brunt of the correction, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices falling more than 5% in three sessions.

On Wednesday, the 30-share Sensex ended down 1,122.66 points, or 1.40%, at 79,116, while the Nifty50 settled 385.2 points, or 1.6%, lower at 24,480. The Nifty Midcap and Nifty Smallcap indices tumbled 2.2% and 2.1%, respectively.

Market breadth remained deeply negative. Of the 4,433 stocks traded on the BSE, 3,246 declined while only 1,052 advanced. As many as 719 stocks hit 52-week lows, compared with just 53 touching fresh highs — a stark reflection of the pressure across segments.

Top gainers and losers

On the BSE Sensex pack, 27 out of 30 stocks ended in the red zone. Among individual stocks, Tata Steel plunged 6.76%, while Larsen & Toubro dropped 4.53%. Bajaj Finance , UltraTech Cement , NTPC and Indigo also saw declines ranging between 3% and 3.5%. Banking majors such as HDFC Bank, Axis Bank and ICICI Bank closed lower, contributing to the drag on benchmarks.

On the other hand, defensive pockets offered limited support. Bharti Airtel rose 1.78%, Infosys gained 1.50%, and Tech Mahindra advanced 0.51%, while the Nifty IT index managed to close marginally higher, up 0.11%, bucking the broader trend.

Sectorally, the pain was broad-based. The Nifty Metal index fell nearly 4%, emerging as the worst performer, as global growth concerns weighed on commodity-linked counters. The Nifty PSU Bank index declined over 3%, while Realty, Oil & Gas, and Media indices also slipped more than 3%.

The Nifty Auto index dropped 2.44%, and Financial Services fell 2.01%, reflecting pressure on rate-sensitive and cyclical sectors.

What fuelled sell-off in the market?

The sell-off was sparked by a dramatic escalation of “Operation Epic Fury” involving the United States, Israel and Iran, which unsettled global investors. The widening of hostilities towards critical Middle Eastern infrastructure has raised concerns over potential disruptions to oil supplies through the Strait of Hormuz — a key artery for global energy trade.

Brent crude surged closer to the $85 per barrel mark, triggering fears of imported inflation and a widening current account deficit for India. The Indian rupee weakened sharply, breaching the psychological ₹92 level for the first time and touching an all-time low of ₹92.30 against the US dollar.

Volatility spiked sharply, with India VIX jumping 23.4% to breach the 21 mark, reflecting elevated uncertainty and expectations of sharp market swings. The surge in volatility was accompanied by a flight to safety, with gold and silver rising more than 1% and 3%, respectively, as investors sought refuge in safe-haven assets.

Vinod Nair, Head of Research at Geojit Investments Limited, said global risk sentiment remained fragile amid ongoing tensions in the Middle East and the closure of the Strait of Hormuz, which kept oil prices volatile. He noted that Indian equities mirrored the broader risk-off environment due to inflationary concerns and the potential for a higher current account deficit. The continued depreciation of the rupee and incremental foreign outflows are likely to keep markets volatile in the near term.

However, he advised investors to avoid panic selling and maintain a disciplined, long-term perspective, suggesting that current levels may offer strategic entry opportunities for medium- to long-term investors.

Ponmudi R, CEO of Enrich Money, said the sharp escalation in geopolitical tensions triggered a strong risk-off sentiment globally, with Asian markets witnessing historic sell-offs. South Korea’s KOSPI plunged nearly 12%, while Thailand’s SET index fell over 8%, reflecting the intensity of global risk aversion.

Amit Modani, Senior Fund Manager and Lead – Fixed Income at Shriram AMC, cautioned that a prolonged disruption to the Strait of Hormuz would represent a structural external shock to India’s growth trajectory. In such a scenario, he said, the risk-reward balance would shift towards high-quality accrual strategies rather than aggressive duration positioning, given elevated external uncertainties.

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