INDIA STOCKS-Indian shares tumble at open as Middle East war dents risk appetite

Updates for markets open

March 2 (Reuters) - Indian shares tumbled on Monday as the Middle East war pushed crude prices higher and triggered a flight to safe havens, weighing on investor sentiment.

The Nifty 50 .NSEI fell 2.06% to 24,659.25 and the BSE Sensex .BSESN shed 3.38% to 78,543.73 as of 9:15 a.m. IST.

This is the steepest intraday drop for Nifty since February 1 and the Sensex since April 7, 2025.

Indian rupee INR=IN depreciated against the dollar while government bond yields rose after U.S., Israel strikes on Iran raised the risk of protracted conflict in the Middle East.

All 16 major sectors logged losses. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 fell 3.8% and 3.4%, respectively.

Oil marketing companies, paint and tyre makers, aviation companies and chemical manufacturers all fell on rising crude oil prices.

Crude surged more than 7% on Monday to the highest in months.

Brent crude futures climbed to about $82.40 a barrel, their highest in 14 months, in the first trading after the U.S.-Israeli strikes on Iran over the weekend killed Tehran's Supreme Leader Ali Khamenei, jolting markets and deepening uncertainty for the global economy.

Tehran said it has closed navigation through the Strait of Hormuz, through which nearly 20% of global oil flows and over 40% of India's crude imports transit, prompting governments and refiners to assess oil stockpiles. O/R

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))