Last Updated on February 27, 2026 5:33 pm by BIZNAMA NEWS
Analysts warn that the volatility is likely to persist until there is clarity on the geopolitical front and the US Fed’s next move. All eyes will now be on the opening bell Monday to see if the 25,000 Nifty level holds.
Our Correspondent
The bulls took a backseat on Friday as the Indian equity markets suffered a bruising sell-off, with the benchmark Sensex and Nifty tumbling over 1% each. A potent mix of stalled US–Iran nuclear talks, relentless foreign fund outflows, and a spike in global crude prices sent investors scurrying for the exit.
The 30-share BSE Sensex plummeted 961.42 points, or 1.17%, to settle at 81,287.19. At its intra-day low, the index had cratered by nearly 1,090 points. Similarly, the broader NSE Nifty 50 slipped below the crucial 25,200 mark, ending 317.90 points lower at 25,178.65.
Geopolitical Deadlock Spooks Investors
The primary trigger for Friday’s rout was the lack of diplomatic progress between the US and Iran. Market veterans noted that the impasse has heightened fears of a broader conflict in the Middle East, a region critical to global energy supplies.
“Indian markets are consolidating amid a risk-off tone,” said Vinod Nair, Head of Research at Geojit Investments. “The uncertainty surrounding nuclear talks and persistent volatility in the AI sector are pushing capital toward safe-haven assets.”
Sector Watch: Auto and Pharma Bleed; IT Holds the Fort
The carnage was widespread, hitting high-growth sectors that had recently seen significant gains.
- The Laggards: The Auto sector was among the hardest hit, with Mahindra & Mahindra and Maruti leading the descent. Sun Pharma and Bharti Airtel also faced heavy selling pressure as institutional investors trimmed their positions.
- The Resilient Few: In a sea of red, the IT pack provided a silver lining. HCL Tech and Infosys ended in the green, benefiting from their perceived status as a hedge against domestic volatility. Retail powerhouse Trent also bucked the trend, finishing as one of the day’s top gainers.
The Institutional Tug-of-War
The market’s trajectory was further weighed down by Foreign Institutional Investors (FIIs), who offloaded equities worth ₹3,465.99 crore on Thursday. While Domestic Institutional Investors (DIIs) attempted to cushion the blow with a massive ₹5,031.57 crore purchase, the sheer volume of global selling pressure overwhelmed the local support.
Crude Oil on the Boil
Adding to the domestic woes, Brent Crude jumped 1.26% to USD 71.64 per barrel. For an oil-importing economy like India, rising crude prices often signal inflationary pressure and a widening current account deficit, further dampening investor enthusiasm.
Market Summary at a Glance
| Benchmark | Final Close | Change (Pts) | Change (%) |
| BSE Sensex | 81,287.19 | -961.42 | -1.17% |
| NSE Nifty | 25,178.65 | -317.90 | -1.25% |
Looking Ahead: Analysts warn that the volatility is likely to persist until there is clarity on the geopolitical front and the US Fed’s next move. All eyes will now be on the opening bell Monday to see if the 25,000 Nifty level holds.
