India's Sensex and Nifty continued to decline on March 5 amid persistent uncertainties from the Iran conflict, surging crude prices, and fears of escalation, compounding the sharp initial drop earlier in the week. Retail investors saw mutual fund and stock portfolios turn negative, prompting advice on navigating wartime volatility.
Following the initial market shock from US and Israel strikes on Iran— which killed Supreme Leader Ali Khamenei and led to the Strait of Hormuz closure (see prior coverage)—Sensex and Nifty faced further declines as of March 5, 2026. Investors reacted to ongoing war uncertainties, volatile crude oil prices (Brent above $82 per barrel), and risks of wider conflict disrupting global supplies, including India's oil imports.
Retail investors have been particularly affected, with many mutual fund and equity portfolios slipping into losses. An India Today analysis titled 'Investing in times of war: Panic, pause or buy the dip?', published March 6, 2026, discusses strategies like avoiding panic selling, pausing new investments, or opportunistically buying dips amid volatility.
This extends the market turmoil that saw Nifty drop over 2% and Sensex nearly 3.4% on March 2, underscoring sustained pressure on sectors like oil marketing, aviation, and chemicals.
