Stock market crash: RIL to SBI— Magnificent 7 stocks in India lose ₹3.28 lakh crore in 2 days as Nifty tanks 4%

Stock market crash: The Magnificent 7 stocks in India — those commanding the highest weightage in the flagship Nifty 50 index — have seen a sharp drawdown of up to 7.5% in just two trading sessions as investors remain risk-averse due to escalating Middle East war.

HDFC Bank, Reliance Industries, ICICI Bank, Bharti Airtel, Infosys, SBI and Larsen & Toubro (L&T) together form the Magnificent 7 stocks in India. These blue-chip companies are held by mutual funds, FIIs and retail investors alike.

The sharp decline in these names due to the stock market crash has wiped off ₹328,702 crore from the market capitalisation of the Magnificent 7 stocks.

Magnificent 7 stocks in India: Check top losers

The worst hit is Mukesh Ambani-led Reliance Industries as its market cap declined the most by ₹87,690 crore to ₹1,824,583 crore from ₹1,912,273 crore. India's most valuable stock has declined 4.5% in just two trading sessions as the government reintroduced windfall taxes on diesel and aviation turbine fuel (ATF) exports.

The reintroduction of the windfall tax is likely to impact Reliance Industries, as it is the country’s largest fuel exporter. Its twin refineries at Jamnagar produce nearly 5 million tonnes of ATF, a significant portion of which is exported, accounting for about one-fourth of India's total ATF output, as per media reports.

RIL is followed by India's biggest lenders — SBI and HDFC Bank — as they both lost over ₹70,000 crore amid a 6-7% decline amid fears that a US-Iran war would keep oil prices higher, causing growth derailment with demand-led headwinds surfacing.

"Corporate capex plans, especially for oil-sensitive sectors, could be deferred. MSME borrowers remain exposed to the risk of rising input cost inflation and supply chain disruptions that could dent their margins. Furthermore, the ongoing West Asia conflict also poses near-term risks to the CV demand cycle led by potential domestic disruptions," said Axis Securities.

In a scenario of an extended war, higher inflation would result in narrowing the room for any potential rate cut the RBI would have otherwise undertaken. Furthermore, near-term pressure on treasury income for PSU banks is likely, given the rising G-Sec yields.

PSU stock, State Bank of India, lost a whopping ₹73,660 crore in two days while HDFC Bank m-cap declined by ₹72,810 crore. At the same time, ICICI Bank has declined 3.80%, resulting in a ₹34,144 crore loss for investors.

Bharti Airtel faced a ₹27,845 crore wealth erosion, and L&T, which has significant exposure to the Middle East, has faced a ₹19,857 crore selloff in the two days, even though the company has clarified that it is not really seeing an impact on its operations.

Infosys, another Magnificent 7 stock in India, has declined the least at 2.45% among these names amid the stock market crash and lost ₹12,694 crore during this period.

US-Iran war drives Nifty to worst monthly fall in 6 years

The US-Israel war with Iran, now in its fifth week, has pushed crude oil prices sharply higher this month — an Achilles’ heel for Indian equities. India's dependence on imported oil makes it extremely vulnerable to rising crude prices, as it raises concerns over inflation and macro stability.

Brent crude futures jumped by $2.42, or 2.2%, to $114.99 after settling 4.2% higher on Friday. US West Texas Intermediate was up $1.72, or 1.7%, at $101.36 after a 5.5% gain in the previous session. The sharp rise comes after Yemeni Houthis launched their first attacks on Israel, widening the US-Israel war against Iran.

The index has ended March almost 11% lower, marking its worst monthly decline in six years.

"While valuations now appear more favourable after the recent correction, the trajectory of earnings revisions remains the key determinant of market direction. Continued volatility in oil prices and rupee weakness may exert pressure on input costs, increasing the risk of near-term earnings downgrades," said Vinod Nair, Head of Research, Geojit Investments.

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