Nifty Erases February Rally as Iran-US Tensions Rattle Markets

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Indian equity markets fell sharply on March 2 as geopolitical fears and rising crude prices weighed on sentiment

By S. JHA

Mumbai, March 2, 2026 — Indian stock markets tumbled over 1% on Monday, with the Sensex dropping 1,048 points and the Nifty closing below 24,900, as escalating US-Iran-Israel tensions drove crude oil prices higher and rattled investor confidence.

According to Angel One, the technical damage on the charts is significant. “On the daily chart, the index has now erased the entire rally seen on 3rd February, which was triggered by the US–India trade deal announcement and had resulted in a massive single-day surge,” the brokerage said. “With that event now fully negated, markets have effectively returned to square one after nearly a month of movement.”

Nifty is now hovering around the crucial Budget Day low of February 1, near the 24,600 zone — a level Angel One calls critical. “How prices behave around the 24,600–24,500 support band in the coming sessions will be critical. A decisive break below this zone could confirm a major technical breakdown and potentially open the door for further downside in the near term,” the brokerage warned.

On the upside, Angel One cautioned that recovery attempts face stiff headwinds. “The bearish gap left around the 25,000–25,150 zone is now expected to act as an immediate and stiff resistance.” The brokerage advised investors that “any bounce should be used cautiously to lighten long positions rather than initiate aggressive longs” until a clear reversal signal emerges.

Defence Stocks Buck the Trend

Against the broader market decline, defence stocks surged sharply amid rising geopolitical tensions. Paras Defence and Space Technologies jumped over 13%, while Bharat Electronics Limited (BEL) and Hindustan Aeronautics Limited (HAL) also traded higher, with sectoral gains reaching up to 12%.

India-Canada Critical Minerals Deal

In a significant diplomatic development, India and Canada signed a critical minerals memorandum of understanding along with a long-term uranium supply agreement. Canadian mining giant Cameco Corp. is set to supply 22 million pounds of uranium to India between 2027 and 2035, strengthening India’s energy security and reducing import dependency.

(Technical levels sourced from Angel One research. This is not investment advice.)