Sensex Plunges 5.5%, Worst Week Since May 2020 Amid Middle East Conflict

• Benchmark Sensex slid 5.5% and Nifty 50 dropped 5.3% this week, marking their worst weekly performance since May 2020.
• The decline is attributed to the raging Middle East conflict, pushing crude oil prices above $100 a barrel and stoking inflation fears for India.
• Auto stocks plunged 10.6% (steepest drop in six years), and Bank Nifty slumped 7% due to intensifying foreign investor outflows.
• L&T, M&M, UltraTech Cement, Eicher Motors, Maruti Suzuki were top Nifty losers; Coal India jumped 6% bucking the trend.
• Experts predict a material terms-of-trade shock and potential 200 bps drop in FY27 earnings growth if the conflict persists.