Mumbai’s stock market felt the tremors of Middle East unrest this week, with engineering giant Larsen & Toubro (L&T) bearing the brunt. The company’s market capitalization plunged by a staggering ₹45,629.03 crore, shrinking to ₹5,43,208.36 crore. This sharp decline underscores the vulnerability of Indian firms heavily invested in the volatile region.
Experts point to L&T’s significant exposure in the Middle East as the primary culprit. Ongoing projects in the area now face uncertainty as geopolitical tensions escalate, potentially delaying timelines and inflating costs. Investors, sensing the risk, pulled back swiftly, triggering the massive value erosion.
The fallout wasn’t isolated to L&T. Eight of India’s top 10 companies saw their combined market caps erode by nearly ₹2,81,581.53 crore over the week. Banking heavyweights like State Bank of India (SBI), ICICI Bank, and HDFC Bank led the losses, alongside Bajaj Finance, TCS, and HUL.
SBI’s market cap dropped ₹53,952.96 crore to ₹10,55,567.27 crore. ICICI Bank shed ₹46,936.82 crore, landing at ₹9,40,049.82 crore. HDFC Bank’s valuation fell ₹46,552.3 crore to ₹13,19,107.08 crore. Bajaj Finance lost ₹28,934.56 crore, closing at ₹5,91,136.03 crore, while TCS dipped ₹28,492.44 crore to ₹9,25,380.15 crore. HUL’s market cap declined ₹26,350.67 crore to ₹5,23,042.51 crore, and Bharti Airtel slipped ₹4,732.75 crore to ₹10,67,120.50 crore.
In a silver lining, Reliance Industries bucked the trend, gaining ₹14,750.39 crore to reach ₹19,01,583.05 crore. Infosys also rose ₹3,459.99 crore to ₹5,30,546.54 crore.
Ajit Mishra, Senior VP of Research at Religare Broking, attributed the market’s heavy weekly close—exacerbated by a short trading week due to holidays—to spiking crude oil prices and West Asian geopolitical risks. ‘Investor sentiment has taken a hit,’ he noted, warning of prolonged caution unless tensions ease.
As global markets grapple with these developments, Indian investors are bracing for more volatility. The Middle East’s shadow looms large over corporate India, prompting a reevaluation of regional dependencies.