New Delhi, March 2 -- The US-Iran war is wreaking havoc on market sentiment. The Sensex plunged over 2,700 points at the opening on Monday but later pared most of its losses. Still, the index was trading about 1,000 points lower at 10:30 am. The NSE benchmark, the Nifty 50, was hovering near 24,850 at that time.

The market is anxious over a sharp rise in crude oil prices and the economic fallout of a prolonged war in the Middle East.

Elevated crude oil prices are a major negative for the Indian economy. Moreover, crude oil is a key raw material for several sectors, implying that rising prices would increase companies' input costs and erode their profitability.

In addition, a war could disrupt the normal operations of companies operatin...