Stock market slump wipes out Rs 18.60 lakh crore investor wealth in 2 days

Equity investors lost Rs 18.60 lakh crore in two trading sessions as domestic markets declined sharply, with the benchmark BSE Sensex falling more than 4 per cent amid rising global uncertainty linked to the West Asia conflict.

The 30-share Sensex dropped 3,325.9 points, or 4.41 per cent, over the last two sessions. On 30 March, it fell 1,635.67 points, or 2.22 per cent, to close at 71,947.55.

The market capitalisation of BSE-listed companies declined by Rs 18,60,662.29 crore to Rs 4,12,41,172.45 crore (USD 4.36 trillion) during the period.

Geopolitical tensions, crude prices weigh

Market participants attributed the decline to escalating tensions in West Asia, which have pushed up crude oil prices and dampened investor sentiment.

Brent crude, the global oil benchmark, rose 2.18 per cent to USD 115.1 per barrel.

Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services, said uncertainty continues to dominate market sentiment.

“Escalating tensions in West Asia continued to weigh heavily on markets, as the ongoing US–Israel conflict with Iran entered its fifth week and expanded across the region,” he said.

FII outflows intensify pressure

Analysts said sustained selling by Foreign Institutional Investors (FIIs) has further weakened markets.

Pabitro Mukherjee, Associate Vice President, Technical Research at Bajaj Broking, said March 2026 has seen one of the largest monthly capital outflows in recent years.

“The primary catalyst for this large-scale withdrawal has been escalating geopolitical tensions in West Asia, which have heightened global uncertainty and risk aversion,” he said.

Mukherjee added that the intensity of risk aversion in recent weeks is comparable to the market turmoil witnessed during the Covid-19 pandemic in 2020.

Broad-based selling across sectors

The sell-off was widespread across sectors, with auto, FMCG, consumer durables, capital goods, realty, private banks and PSU banks declining between 2 and 4 per cent.

Among Sensex constituents, Bajaj Finance, State Bank of India, InterGlobe Aviation, Bajaj Finserv, Axis Bank and Kotak Mahindra Bank were among the major losers, while Power Grid was the only gainer.

A total of 3,563 stocks declined on the BSE, compared to 876 advances and 154 unchanged.

Monthly losses deepen

The downturn has extended through March, with the Sensex falling 9,339.64 points, or 11.48 per cent, since the start of the West Asia conflict on 28 February.

Analysts said continued geopolitical uncertainty, rising crude prices and persistent foreign fund outflows remain key risks for markets in the near term.