Last Updated on March 23, 2026 11:27 pm by BIZNAMA NEWS
AMN Biz Desk
Indian equity markets witnessed a sharp sell-off on Monday as escalating geopolitical tensions in the Middle East, rising crude oil prices and continued foreign fund outflows rattled investor sentiment. Benchmark indices tumbled in line with weak global cues as the conflict in the region entered its fourth week with no immediate signs of de-escalation.
The 30-share BSE Sensex plunged 1,836.57 points, or 2.46 per cent, to close at 72,696.39. During intra-day trade, the index had dropped even further by 1,974 points, touching a low of 72,558.44 amid heavy selling across sectors.
The broader NSE Nifty 50 also suffered steep losses, falling 601.85 points, or 2.60 per cent, to settle at 22,512.65, reflecting widespread risk aversion among investors.
Oil Prices and War Weigh on Sentiment
Market analysts said the downturn was largely driven by surging global oil prices and growing uncertainty linked to the ongoing conflict in the Middle East. The war, now in its fourth week, has intensified fears of disruptions to global energy supply, particularly through key shipping routes.
Global benchmark Brent crude rose 0.97 per cent to around $113.3 per barrel, keeping energy costs elevated and raising concerns about inflationary pressures on major economies, including India.
Higher crude prices are particularly significant for India, one of the world’s largest oil importers, as they can widen the trade deficit, weaken the currency and weigh on corporate profitability.
Foreign Outflows, Weak Rupee Add Pressure
Investor sentiment was further dented by persistent foreign institutional investor (FII) outflows and a sharp fall in the Indian currency. The Indian Rupee slipped 50 paise to close at a record low of 94.03 per US dollar, breaching the 94-per-dollar mark for the first time.
Currency traders attributed the decline to rising crude prices, strong demand for the US dollar and continued capital outflows from emerging markets.
Sectoral Losses Dominate
Selling pressure was visible across most sectors on Dalal Street. Among the major losers on the Sensex were Titan Company, which dropped more than 6 per cent, along with Trent, UltraTech Cement, Bharat Electronics, InterGlobe Aviation, Tata Steel and HDFC Bank.
However, a few technology and power stocks managed to buck the broader trend. Shares of HCLTech, Power Grid Corporation of India, Infosys and Tech Mahindra ended the session with gains.
Markets Remain Volatile
Market experts say volatility is likely to persist as investors continue to track geopolitical developments, crude oil movements and global market trends.
If tensions in the Middle East escalate further or oil prices continue to rise, analysts warn that emerging markets like India could face heightened inflation risks, currency pressure and further stock market volatility in the coming weeks.
