US-Iran War Impact: Why L&T, TCS and KEC Shares Are Under Pressure Amid Middle East Exposure

Overview

• Indian stock markets remain closed for Holi after a sharp March 2 sell-off triggered by rising US-Iran tensions.

• L&T, TCS, KEC International, and VA Tech Wabag fell sharply due to significant business exposure in the Middle East.

• Prolonged conflict in the Middle East could disrupt projects, delay orders, and increase volatility in exposed Indian stocks.

Indian stock market is closed on March 3 for Holi, a festival of colours. Both the Bombay Stock Exchange and the National Stock Exchange have suspended trading for the day. Equity trading will resume on March 4. The holiday follows a sharp sell-off on Monday, March 2, after rising tension between the US and Iran hurt global sentiment. The war has especially  hit some Indian sectors like tech and export hard. Here’s everything you need to know.

US-Iran War Impact on Indian Stock Market

On March 2, benchmark indices opened with steep losses. Sensex fell more than 2,700 points at the open before it reduced some losses later. Nifty 50 traded near 24,850 during the morning session. The fall came as crude oil prices surged on fears of a wider Middle East conflict.

Higher oil prices are a big concern for India. The country imports a major part of its crude oil from the region. If oil stays high, input costs rise for airlines, paint firms, chemical companies, and transport businesses. This can reduce profit margins and slow growth. A long conflict may also disrupt business operations and project work in the Middle East, which affects many Indian companies.

L&T Share Price Falls on Middle East Exposure

Larsen & Toubro has deep exposure to West Asia. International revenue made up more than half of its total revenue in the latest quarter. The company has secured many large infrastructure contracts from the Middle East in recent years. In FY25, order inflows crossed Rs. 3.5 lakh crore, supported by strong demand from the region. However, the stock dropped around 7.5% in intraday trade on March 2. Analysts say that if tensions continue, new orders and project timelines may face delays.

TCS Share Price Hits 52-Week Low

Tata Consultancy Services earns a steady share of revenue from the Middle East and North Africa region. Revenue from this geography rose over 8% year-on-year in the recent quarter. The region helped support growth as other markets such as the UK saw weakness. Despite this, TCS shares declined more than 3% on March 2 and touched a 52-week low near Rs. 2,551. Investors remain cautious due to global uncertainty.

KEC International and Project Pipeline Concerns

KEC International has many active projects in the Middle East, including pipeline work. The company sees the region as a key growth driver. However, any delay in project execution due to geopolitical issues can hurt revenue flow. The stock dropped nearly 12% and touched a 52-week low of ₹517.90 on March 2. Emkay and JM Financial both listed KEC among companies that may face pressure if hostilities continue.

Also Read: NSE, BSE Closed for Holi 2026: Nifty Outlook, Bank Nifty Levels and Top Stocks to Buy Tomorrow

Other Exposed Names: VA Tech Wabag and Kalyan Jewellers

VA Tech Wabag executes water treatment and desalination projects in Saudi Arabia and other Gulf countries. The stock fell more than 12% during the session as investors reacted to regional risk.

Kalyan Jewellers also has large operations in the Middle East. Revenue from the region rose sharply in the recent quarter. Its share price declined by over 4% amid market weakness.

JM Financial also pointed to companies such as Cummins India, Thermax and AIA Engineering due to export exposure. Emkay highlighted IndiGo, along with L&T and KEC as vulnerable if the conflict lasts longer.

Where Can Investors Take Shelter?

Brokerage views suggest that information technology stocks may offer relative safety. Emkay Global prefers names such as Infosys and HCL Technologies. These companies may benefit from a weaker rupee, which supports export earnings. However, analysts also caution that concerns around global tech spending and AI remain.

In short, the US-Iran conflict has added fresh uncertainty to Indian markets. The direct exposure of several companies to the Middle East, along with rising crude prices, keeps investors cautious. If tensions ease soon, markets may stabilise. If not, volatility may stay high in the coming weeks.

Also Read: ONGC Share Price at ₹281.90, Up 0.79% as Crude Jumps on US-Iran War Tensions

FAQs

1. What is the impact of the US-Iran war on the Indian stock market?

The US-Iran war has made Indian markets weaker because it pushed crude oil prices higher, which increases costs for many companies and hurts profit margins. Stocks of firms with big Middle East exposure, like infrastructure and export-linked companies, fell sharply as investors moved out of risk assets amid uncertainty. Overall sentiment turned cautious and risk-off.

2. Which Indian stocks are affected by the US-Iran war?

Companies with strong business links to the Middle East saw pressure. Larsen & Toubro, TCS, KEC International, VA Tech Wabag, and Kalyan Jewellers all have exposure to the region. Some earn revenue from projects there, while others operate stores or services. If the conflict continues, delays or cost pressure may affect these companies.

3. Is L&T affected by the Middle East war?

Yes, L&T has major exposure to West Asia. A large share of its international revenue comes from the region. The company also wins many infrastructure contracts there. If tensions rise further, project timelines or new order inflows may slow. That concern led to a sharp drop in the stock price during Monday’s trade.

4. Why did TCS share price fall?

TCS earns part of its revenue from the Middle East and North Africa region. Even though growth there remained steady, global uncertainty hurt investor confidence. When geopolitical risk rises, IT stocks often face selling pressure. On March 2, TCS shares fell and touched a 52-week low as investors reduced risk exposure.

5. What impact do crude oil prices have on Indian stock market?

India imports more than half of its crude oil needs from the Middle East. When oil prices rise, transport, aviation, paint, and chemical companies face higher costs. This can reduce profits. High oil prices can also increase inflation and affect economic growth. Because of this, stock markets usually react negatively when crude prices surge.