Last Updated on March 9, 2026 7:43 pm by BIZNAMA NEWS
PSU Banks, Auto and Infrastructure Stocks Lead Losses; IT Shows Resilience
BIZNAMA DESK
The Indian equity markets witnessed a bloodbath on Monday as geopolitical tensions in West Asia escalated into a full-scale US-Iran conflict, sending global energy prices soaring and triggering a massive sell-off in domestic assets. The benchmark Nifty50 has officially entered a technical correction zone, having dropped over 10% from its January record high.
The Market Carnage: Key Indices
The BSE Sensex plummeted 1,352.74 points (1.71%) to settle at 77,566.16. The volatility was extreme, with the index crashing nearly 2,500 points during intra-day trade before a late-session recovery. Similarly, the NSE Nifty50 dropped 422.40 points (1.73%) to close at 24,028.05.
The broader markets faced even steeper declines, reflecting widespread panic. The Nifty MidCap 100 and Nifty SmallCap indices underperformed the benchmarks, sliding 1.97% and 2.22% respectively.
Currency Shock: Rupee at All-Time Low
The Indian Rupee collapsed under the pressure of a strengthening US Dollar and surging oil prices. The domestic currency fell 53 paise to close at a historic low of 92.35 against the US Dollar. The weakness in the rupee is expected to further fuel imported inflation, particularly for energy and electronics.
Sector-Wise Performance & Major Laggards
The crash was led by sectors sensitive to high interest rates and rising input costs:
| Sector | Impact | Key Drivers |
| PSU Banks | -3.97% | The worst-performing sector. SBI and other state lenders faced heavy selling. |
| Cement & Infra | -5.23% | UltraTech Cement was the top Sensex loser due to rising energy costs. |
| Auto | Heavy Loss | Maruti and M&M dragged as fuel price hikes threatened demand. |
| Aviation | Heavy Loss | InterGlobe Aviation (IndiGo) tanked as ATF prices are tied to Brent Crude. |
| IT Sector | +0.08% | The only sector to end in green. Tech stocks acted as a defensive hedge. |
Energy Crisis: Brent Crude Near $104
The primary catalyst for the meltdown was the surge in global oil benchmarks. Brent Crude jumped 12.34% to hit $104.1 per barrel, peaking at an alarming $120 during the session. While prices softened slightly toward the end of the day, the triple-digit figure remains a significant threat to India’s fiscal deficit.
Winners and Losers
Despite the gloom, defensive buying in IT and heavyweights provided some cushion:
- Top Gainers: Reliance Industries, Sun Pharma, Infosys, Tech Mahindra, and HCL Tech.
- Major Laggards: UltraTech Cement, Maruti, M&M, SBI, InterGlobe Aviation, and Adani Ports.
Expert Outlook
Analysts warn that the Nifty50’s drop from its January 5 peak of 26,373 signals a shift in market sentiment from “buy on dips” to “sell on rise.” With the rupee at 92.35 and oil over $100, the Reserve Bank of India (RBI) faces a tough challenge in maintaining its inflation targets in the coming quarter.
