New Delhi, April 2 -- Dalal Street is bleeding, investors are panicking, and foreign capital is flowing out of the Indian stock market incessantly due to the US-Iran war. The combined forces of the US and Israel attacked Iran on February 28 this year, giving a strong jolt to stock markets across the world.

The war in West Asia shot up crude oil prices to multi-year high levels, dragged the Indian rupee to unprecedented lows, and prompted foreign institutional investors (FIIs) to hit the sell button again on the Indian equities after mild buying in February.

Indian stock market benchmarks, the Sensex and the Nifty 50, have lost 10% each since the US-Israeli attack on Iran began on February 28. The broader Nifty 500 index has also plunged...