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Sensex Falls Over 2,700 Points on US-Iran Tensions Amid Mixed Institutional Flows

BSE Sensex dropped over 2,700 points and Nifty fell sharply due to US-Iran conflict and oil prices spiking 2.87%, raising inflation and trade deficit concerns, analysts said.

  • On Monday, March 2, 2026, in Mumbai, the BSE Sensex dropped 2,743.46 points to 78,543.73, while the NSE Nifty 50 opened down 519.4 points at 24,659.25 as Gift Nifty fell 115.5 points.
  • Geopolitical escalation between the United States, Israel and Iran intensified as Iranian state media reported Ayatollah Ali Khamenei was killed, while Foreign Institutional Investors sold Rs 7,536 crore and Domestic Institutional Investors bought over Rs 12,000 crore.
  • In early trade, market internals showed that market breadth was decisively negative with 2,412 decliners against 80,300 advancers on the NSE, while Larsen & Toubro slumped nearly 7% and IndiGo led losses.
  • Brent crude's rise to $72.87 per barrel raises supply and inflation concerns, with India facing balance-of-payments pressure and investors shifting to safer assets amid fresh uncertainty.
  • After a weak close last week, domestic benchmarks may see heightened volatility as markets will remain closed on Tuesday for Holi, with the NSE Nifty 50's P/E at 22.03 and the Sensex down 1,527.52 points.
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Moneycontrol broke the news in India on Monday, March 2, 2026.
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