LT

Slumps 5% as Middle East Tensions Shake Investor Sentiment

shares fell over 5% to around Rs 4,057 on March 2, emerging as the top loser on the Nifty, after reports of US-Israeli strikes that killed Iran’s Supreme Leader Ali Khamenei heightened geopolitical tensions in the Middle East. Given L&T’s significant exposure to the region across energy, infrastructure, renewables, and technology projects, investors reacted cautiously amid fears of potential project delays or disruptions. In my view, the reaction appears sentiment-driven in the short term, as any real impact would depend on escalation levels and contract exposure; unless tensions materially disrupt operations, the long-term fundamentals of the company remain intact, though volatility may persist.