Last Updated on March 2, 2026 11:04 pm by BIZNAMA NEWS
Auto, Oil & Gas Stocks Lead Selloff; Volatility Jumps 25% as Crude Surge Dampens Investor Sentiment
Our Correspondent
Indian equity markets witnessed a sharp selloff on Monday, with benchmark indices posting their steepest single-day fall in weeks amid escalating geopolitical tensions in West Asia and a spike in global crude oil prices.
The BSE Sensex plunged 1,048.34 points or 1.29 per cent to close at 80,238.85 — its lowest level since September 2025 — after opening sharply lower at 78,543.73. The index, however, recovered partially from intraday losses in late trade.
Similarly, the Nifty 50 declined 312.95 points or 1.24 per cent to settle at 24,865.70 after slipping close to 24,600 during the session. Analysts said the index remains under pressure below the crucial 25,000 mark.
Market breadth was decisively negative. On the BSE, 3,641 stocks declined against just 754 advances, while 869 shares touched their 52-week lows — indicating broad-based risk aversion rather than isolated sectoral weakness.
Volatility Spikes Sharply
The India VIX, often referred to as the fear gauge, surged 25.01 per cent to 17.13, reflecting heightened uncertainty among traders. The spike came amid fears of supply disruptions through the Strait of Hormuz after fresh tensions involving Iran, pushing Brent crude prices up by nearly 6–10 per cent.
The rupee also weakened against the US dollar as foreign institutional investors (FIIs) accelerated selling in risk-off mode.
Sector-Wise Performance
Auto Sector — Worst Hit
The Nifty Auto index fell 2.20 per cent, emerging as the worst-performing sector. Rising crude prices raised concerns over input costs and demand pressures.
- Maruti Suzuki India slipped 3.29%
- InterGlobe Aviation tumbled 6.09%
Banking & Financials
The Nifty Bank declined 1.14 per cent to 59,839.65, slipping below the 60,000 mark despite recovering from intraday lows.
The Nifty Financial Services dropped 1.10 per cent, reflecting cautious sentiment in rate-sensitive sectors.
Oil & Gas
Energy stocks remained under pressure as higher crude prices stoked inflationary fears, though select upstream players showed resilience.
- Oil and Natural Gas Corporation gained 0.63%
Infrastructure & Capital Goods
- Larsen & Toubro fell 5.24%, dragging the capital goods segment lower.
Ports & Logistics
- Adani Ports and Special Economic Zone declined 3.43% amid trade disruption concerns.
Metal — Lone Outperformer
The Nifty Metal rose 0.24 per cent, outperforming other sectors.
- Hindalco Industries climbed 1.70%
Defence & Pharma Show Strength
- Bharat Electronics Limited gained 2.13%
- Sun Pharmaceutical Industries rose 0.93%
- ITC Limited edged up 0.35%
Broader Markets Underperform
The Nifty Midcap 100 fell 1.58 per cent, while the Nifty Smallcap 100 dropped 1.75 per cent, indicating sharper selling pressure in the broader market compared to frontline indices.
The Nifty Next 50 also declined 1.52 per cent.
Technical Outlook
Market experts said the Nifty faces immediate resistance in the 24,900–25,000 zone, while support lies near 24,700–24,500. Sustained trade below 24,800 could trigger further downside in the near term.
Bank Nifty, meanwhile, retains a neutral-to-bearish bias below 60,000.
Outlook Ahead
With crude oil prices remaining volatile and geopolitical tensions in West Asia intensifying, analysts expect market direction to hinge on energy prices, global cues and foreign fund flows. Investors are likely to remain cautious ahead of the upcoming Holi holiday and key derivatives positioning.
Unless stability returns to global energy markets, volatility may persist in the short term, keeping risk appetite subdued across domestic equities.
