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Shares of Larsen & Toubro come under heavy selling pressure on Wednesday, falling sharply as escalating tensions in West Asia weighed on investor sentiment.
L&T Share Price.
L&T Stock Price: Shares of Larsen & Toubro came under heavy selling pressure on Wednesday, falling sharply as escalating tensions in West Asia weighed on investor sentiment. The stock declined over 7 per cent intraday to Rs 3,764.90, extending its losses for the second consecutive session. It was the biggest loser among the 30 shares of the Sensex.
With the latest fall, L&T shares have dropped nearly 12 percent in the past two trading days, reflecting rising concerns about the potential impact of the Middle East conflict on the company’s business outlook.
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Market participants note that the region is a key revenue contributor for the engineering and construction major.
Dharmesh Kant, Head (Research) at CSec, said the company is currently facing uncertainty due to the geopolitical situation.
“Larsen & Toubro is currently facing two key challenges — uncertainty in the Middle East, which accounts for nearly 35% of the company’s revenue, and pressure on its consolidated numbers as around 23% of its business comes from its IT division (LTTS and LTI Mindtree), which may affect overall earnings. However, L&T’s core hydrocarbon and engineering services businesses are doing well. Once the Middle East crisis settles, the company may receive more orders. For now, investors should wait for the conflict to stabilise before fresh buying. The situation is still evolving. If the stock corrects another 5-7%, investors can consider taking a call. From a long-term perspective, it remains a buy-on-decline stock,” he said.
Global brokerage Macquarie has maintained an ‘Outperform’ rating on the stock with a price target of Rs 4,910.
CLSA has also retained an ‘Outperform’ rating on the stock, with a price target of Rs 4,842. The brokerage views the recent weakness, driven by cyclical concerns around the Middle East, as a buying opportunity for what it describes as an emerging global energy infrastructure player.
The sharp correction in the stock also comes amid broader market weakness triggered by the escalating geopolitical tensions and rising crude oil prices, which have led to risk aversion among investors.
Analysts said stocks with significant exposure to the Middle East region may remain volatile until there is greater clarity on the conflict and its economic implications.
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March 04, 2026, 10:09 IST
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