Indian Stock Market Alert: How Will Sensex, Nifty Perform On Monday As US-Israel-Iran War Kabooms Middle East

Indian stock market could trade face volatility or selling pressure on Monday, March 2, 2026, due to the USA, Israel and Iran attacks that has put the conditions in Middle East oil and gas trade fragile. The war between the three countries is expected to spike crude oil prices, which could result in inflationary pressure, further weaken rupee and hence lead to outflows. The conditions between the three countries will be keenly watched, with hopes of a ceasefire. But the current state is uncertain and that's enough to keep investors in panic-mode.

Sensex, Nifty February 2026 Performance:

As of February 27, 2026, Sensex stood at 81,287.19, reporting a decline of 961.42 points or 1.2% on Friday. Meanwhile, Nifty 50 dropped by 317.90 points or 1.3% to end at 25,178.65 in the last trading session of February.

Following this, Sensex ended February 2026 in red with 0.5% decline, however, Nifty 50 outperformed with gains of 0.5% in the month.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"The near-term impact will be negative. Crude has spiked and if the crude price remains high for an extended period of time, our balance of trade and balance of payments will be impacted since we import around 85% of our oil requirements. OPEC Plus will scale up production and try to stabilize prices. If the strait of Hormuz is closed ( there are unconfirmed reports of this) the crude price can spike further. Trump may forcefully reopen this. But that requires boots on the ground which will escalate tensions further.

Medium-term impact on the market will depend on how long the conflict will last. We don't know the answer to this question. After crippling Iran, US and Israel may make a strategic withdrawal. The market will react very negatively. In a weak market, upstream oil companies and defense stocks will do well."