The key equity benchmarks closed sharply lower on Monday as investors adopted a cautious stance amid weak global cues. Sentiment remained under pressure due to escalating geopolitical tensions following the US-Israel attacks on Iran, which dampened risk appetite. From a market perspective, the primary concern remains the energy risk arising from the sharp surge in crude oil prices. Market participants also tracked movements in metal prices for further direction. The Nifty slipped below the 24,900 mark, weighed down by losses in auto, consumer durable and energy stocks.

The S&P BSE Sensex tanked 1,048.34 points or 1.29% to 80,238.85. The Nifty 50 index dropped 312.95 points or 1.24% to 24,865.70.

Larsen & Toubro (down 5.24%), Reliance Industries (down 2.43%) and HDFC Bank (down 0.64%) were major Nifty drags today.

The broader market underperformed the key equity indices. The S&P BSE Mid-Cap index tumbled 1.63% and the S&P BSE Small-Cap index slumped 1.98%.

The market breadth was weak. On the BSE, 821 shares rose and 3,561 shares fell. A total of 159 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 25.01% to 17.13.

The Indian stock market will remain closed on Tuesday, 3 February 2026, on account of Holi.

Economy

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI)'a gauge of overall conditions derived from measures of new orders, output, employment, supplier delivery times, and stocks of purchases'rose from 55.4 in January to a four-month high of 56.9 in February.

West Asia Conflict:

The United States and Israel have launched major coordinated military strikes on Iran, marking a significant escalation in long-running Middle East tensions. On 1 March 2026, Iran launches missile and drone strikes on U.S. bases across six Middle Eastern countries amid escalating military tensions.

Iran's Supreme Leader Ayatollah Ali Khamenei was reportedly killed in the attacks, escalating tensions further. Following his death, Iran appointed Ayatollah Alireza Arafi to its interim leadership council, which will assume charge of the country's affairs.

Numbers to Track:

In the commodities market, Brent crude for May 2026 settlement surged $5.73 or 7.86%, to $78.60 a barrel amid heightened geopolitical tensions. According to media reports, Saudi Arabia's state-owned oil major Aramco temporarily shut down its Ras Tanura refinery on Monday as a precautionary measure after an Iranian drone strike reportedly sparked a fire at the facility.

The yield on India's 10-year benchmark federal paper rose 0.26% to 6.678 compared with the previous session close of 6.661.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 91.5300 compared with its close of 91.0800 during the previous trading session.

MCX Gold futures for 2 April 2026 settlement jumped 4.09% to Rs 168,728.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.58% to 98.18.

The United States 10-year bond yield rose 0.10% to 3.962.

Global Markets:

The US Dow Jones index futures are currently down by 541 points, signaling a weak opening for US stocks today.

European shares declined on Monday after Germany's retail sales fell 0.9% month-on-month in January 2026, dampening investor sentiment.

Asian indices ended lower after the United States and Israel launched their most ambitious attacks on Iran in decades, killing Supreme Leader Ayatollah Ali Khamenei.

U.S. and Israeli strikes, and the Iranian retaliation, have sent shockwaves across the Middle East and through sectors from shipping to air travel to oil on warnings of rising energy costs and disruption to business in the Gulf, a strategic waterway and global trade hub.

Most Gulf equities fell on Sunday, though Boursa Kuwait suspended trading and the UAE ordered its stock markets closed on Monday, a sign of the growing economic disruption sweeping the Gulf.

Stock futures tumbled in overnight trading after the weekend strikes in Iran. Futures on the Dow Jones Industrial Average dropped 517 points, or 1%. S&P 500 futures lost 1%, and Nasdaq 100 futures declined a little more than 1%.

On Friday, stocks saw a sharp sell-off after the latest producer price index data came in much hotter than expected, adding sticky inflation to a list of concerns that has caused market turbulence this month.

The Dow Jones Industrial Average dropped 1.05%, the S&P 500 closed down 0.43%, while the Nasdaq Composite lost 0.92%.

The S&P 500 and Nasdaq finished in the red for February amid growing fears about the impact of artificial intelligence on specific industries and the overall economy.

Fueling the downbeat sentiment, January's producer price index, a measure of wholesale inflation, showed a 0.5% increase for the month. Media reports had suggested that the headline reading could come in at 0.3%. The core PPI reading, which excludes food and energy prices, recorded a 0.8% gain, much more than the 0.3% rise that was widely reported in the media.

New Listing:

Shares of Shree Ram Twistex ended at Rs 73.45 on the BSE, a discount of 29.38% compared with the issue price of Rs 104.

The stock debuted at Rs 70, a discount of 32.69% to the issue price. The stock has hit a high of Rs 73.45 and a low of Rs 67. On the BSE, 2.36 lakh shares of the company were traded in the counter.

Shares of Clean Max Enviro Energy Solutions ended at Rs 867.90 on the BSE, a discount of 17.58% compared with the issue price of Rs 1,053.

The stock debuted at Rs 952.20, a discount of 9.57% to the issue price. The stock has hit a high of Rs 958.40 and a low of Rs 761.80. On the BSE, 7.97 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Shares of aviation companies fell sharply as escalating tensions in the Middle East triggered widespread airspace closures and disrupted flight operations.

InterGlobe Aviation, the parent of IndiGo, dropped 6.25%, while SpiceJet declined 5.72% amid concerns over rising operational challenges.

KVS Castings rallied 10.22% after the company announced the commencement of commercial operations at its new manufacturing facility, Unit-2, from 2 March 2026.

Zydus Lifesciences fell 1.70%. The company has received final approval from the United States Food and Drug Administration (USFDA) for Ivermectin Tablets USP, 3 mg, and Dapsone Tablets USP, 25 mg and 100 mg.

Bharat Coking Coal (BCCL) dropped 2.07% after the company's coking coal production fell 1.6% to 3.26 million tonnes in February 2026 compared with 3.31 million tonnes in February 2025.

Paras Defence and Space Technologies rallied 5.95% after the company announced the incorporation of a new subsidiary, Paras Semiconductors. The newly incorporated entity, registered in India on 27 February 2026, will focus on setting up an advanced heterogeneous packaging and 3D packaging OSAT facility. The unit will cater to high-growth segments such as artificial intelligence, high-performance computing, networking and data center applications. Paras Defence has subscribed to 70,000 equity shares of Rs 10 each, aggregating to Rs 7 lakh, through cash consideration.

Monthly Auto Sales:

Hyundai Motor India shed 0.70%. The company has recorded total sales of 66,134 units in February 2026, thereby registering a year-on-year growth of 12.6%. While domestic sales rose by 9.8% YoY to 52,407 units, exports increased by 24.8% to 13,727 units in February 2026.

Tata Motors Passenger Vehicles slipped 3.30%. The company has recorded total sales of 63,331 units in February 2026, registering a robust 35% YoY growth over 46,811 units in sold February 2025. Total electric vehicle (EV) sales rose 57% to 8,385 units in February 2026 from 5,343 units in the corresponding month last year, significantly outpacing the 35% growth recorded in overall passenger vehicle (PV) volumes.

Eicher Motors dropped 2.48%. The company's unlisted subsidiary, VE Commercial Vehicles (VECV), reported a 23.4% year-on-year jump in commercial vehicle (CV) sales to 9,986 units in February 2026.

Ashok Leyland shed 0.92%. The company reported a 24% jump in total sales (domestic & exports) to 22,157 units in February 2026, compared with 17,903 units sold in February 2025.

Bajaj Auto fell 1.91%. The company reported 27% increase in total auto sales for February 2026, selling 4.48 lakh units as against 3.52 lakh units sold in February 2025.

Escorts Kubota tumbled 3.57%. The company's agri-machinery business division sales grew by 20.4% to 10,339 units in February 2026 as against 8,590 units sold in February 2025.

TVS Motor Company shed 2.03%. The company registered sales of 529,308 units in February 2026, which is 31% higher as compared with the 403,976 units sold in February 2025.

Hero MotoCorp declined 2.09%. The company has recorded a 44% year-on-year (YoY) rise in total two-wheeler dispatches in February 2026, selling 558,216 units during the month as compared with 388,068 units in February 2025.

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