Synopsis: Since the Iran-US war officially escalated on March 5, 2026, the Indian stock market has witnessed a brutal capital flight, with the Nifty 50 plunging nearly 7% in just over a week. The conflict, which has pushed Brent crude past $100 and effectively choked the Strait of Hormuz, has specifically targeted companies with high Middle East exposure or heavy dependency on petroleum derivatives.

Worst Performing Stocks Iran-US War: 5 Stocks That Crashed in 2026

Dalal Street’s investor wealth has eroded by over ₹25 lakh crore since the hostilities began. While safe-haven assets like gold and defense stocks (HAL, Mazagon Dock) have surged, the “crude-sensitive” and “export-heavy” segments have been decimated.

The “Fatal Five”: Worst Performers (March 5 – March 13, 2026)

The following stocks have seen the most significant erosion in value as they face a “triple threat” of rising input costs, supply chain disruptions, and loss of international revenue.

1. Larsen & Toubro (L&T) | Change: -20.5%

L&T has emerged as the biggest large-cap loser. The company is fundamentally tied to the Middle East, with nearly 40% of its total order book coming from the GCC region.

Investors fear that the war will halt project execution in Saudi Arabia and the UAE, while also impacting the valuations of its IT subsidiaries.

2. BPCL (Bharat Petroleum) | Change: -14.0%

Oil Marketing Companies (OMCs) are at the “ground zero” of the energy shock. With the government likely to freeze retail fuel prices to curb inflation, BPCL is forced to absorb massive under-recoveries on every liter of petrol and diesel sold as crude prices sustain above $100.

3. InterGlobe Aviation (IndiGo) | Change: -11.8%

The aviation giant is facing a “double whammy.” First, the cost of Aviation Turbine Fuel (ATF)—which accounts for 40% of its operating expenses—has skyrocketed.

Second, the closure of Middle Eastern airspace has forced long-haul flight diversions, drastically increasing operational costs and reducing passenger load factors.

4. Maruti Suzuki | Change: -9.0%

Auto stocks have hit a “roadblock” as rising fuel prices dampen consumer sentiment for new vehicles.

Maruti, particularly dominant in the entry-level segment, is most vulnerable to “inflation-led demand destruction” among middle-class buyers.

5. Asian Paints | Change: -7.2%

As a major consumer of crude oil derivatives (monomers and solvents), Asian Paints is seeing its gross margins evaporate.

While the company typically has strong pricing power, analysts worry that the current scale of the oil spike is too high to pass on to consumers without hurting volumes.

Also read: Urban Company Price Fell to Near-IPO Levels: Why the Stock Fell 3% Today

Impact Summary: Why These Sectors Are Bleeding

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