New Delhi, March 18 -- Escalating tensions in West Asia have abruptly halted the powerful rally in public sector stocks, which had been among the strongest performers on Dalal Street in recent years.

Since 27 February 2026, when the West Asia conflict intensified, the Nifty 50 has declined about 8%, as crude oil prices surged past $100 per barrel and global risk aversion increased.

The BSE PSU index, which hit its 52-week high of 22,560.74 on 26 February, has declined nearly 8% since then. Even so, the 60-stock index has held up slightly better than the broader market this year, rising about 1.5% year-to-date while the Nifty 50 is down roughly 10% over the same period.

The shift in sentiment is reflected in market capitalisation. A Min...