Crude oil prices surpassing $100 have erased Rs 20 lakh crore from Indian equity markets this week, amid escalating Iran conflict. The rupee hit a record low as foreign institutional investors continued selling, intensifying the downturn. Experts suggest the panic could present long-term buying opportunities.
Indian equity markets faced severe volatility this week, driven by geopolitical tensions involving Iran, Israel, and the United States, alongside rising crude oil prices above $100 per barrel. The benchmark Nifty 50 index declined nearly 10% from its 52-week high, while the broader Nifty Microcap 250 index fell around 18%. This selloff wiped out Rs 20 lakh crore in market value, with the rupee reaching a record low and foreign institutional investors (FIIs) adding pressure through continued selling.
The downturn coincided with Friday the 13th, when markets opened sharply lower, evoking superstitions like paraskevidekatriaphobia. The Sensex and Nifty experienced significant drops, marking the biggest weekly decline in over a year. Experts recommend a 'sell on rise' strategy, favoring selective investments in resilient sectors such as pharma and metals, while advising caution in banks, IT, autos, and real estate.
Amid the chaos, about 26 microcap stocks dropped more than 50% from their 52-week highs. Notable examples include Oswal Pumps, down 65% to Rs 307, held by 16 mutual fund schemes as of February 2026; Awfis Space Solutions, fallen 60% to Rs 286, with 45 schemes; and HG Infra Engineering, down 60% to Rs 508, held by 21 schemes. Other affected stocks are Ganesha Ecosphere (56% drop to Rs 768), Zaggle Prepaid Ocean Services (52% to Rs 225), Paradeep Phosphates (52% to Rs 113), Dhanuka Agritech (51% to Rs 961), Le Travenues Technology (50% to Rs 168), and KNR Constructions (50% to Rs 127).
Axis Mutual Fund and other experts argue that the current fear may create rare long-term buying windows, as mutual fund holdings in these stocks reflect prior due diligence. However, the ongoing Iran conflict and oil price escalation continue to rattle investor sentiment.
