Markets Fall Over 2% on Geopolitical Tensions, Rising Crude
Crude oil prices staying above the USD 100 per barrel mark, the rupee's fall to record lows, and unabated foreign fund outflows also added to the gloom.
By : PTI
Update: 2026-03-27 12:17 GMT
Mumbai: Equity benchmark indices Sensex and Nifty tumbled over 2 per cent on Friday after a two-day rally, in tandem with a global selloff, as investor sentiment weakened due to uncertainties over geopolitical tensions.
Crude oil prices staying above the USD 100 per barrel mark, the rupee's fall to record lows, and unabated foreign fund outflows also added to the gloom.
The 30-share BSE Sensex tanked 1,690.23 points, or 2.25 per cent, to settle at 73,583.22. During the day, it plunged 1,739.04 points, or 2.31 per cent, to 73,534.41.
A total of 3,544 stocks declined, while 822 advanced and 135 remained unchanged on the BSE.
The 50-share NSE Nifty dropped 486.85 points, or 2.09 per cent, to end at 22,819.60.
In a holiday-shortened week, the BSE benchmark lost 949.74 points or 1.27 per cent, and the Nifty tanked 294.9 points or 1.27 per cent.
"Investor sentiment remained fragile due to a lack of clarity surrounding geopolitical tensions between the US and Iran, which once again pushed crude oil prices above the USD 100 mark. In addition, persistent FII outflows and sharp weakness in the rupee further weighed on risk appetite," Ajit Mishra - SVP, Research, Religare Broking Ltd, said.
From the 30-Sensex firms, Reliance Industries dropped the most by 4.55 per cent, followed by InterGlobe Aviation, Bajaj Finance, State Bank of India, Eternal and HDFC Bank.
In contrast, Tata Consultancy Services, Bharti Airtel and Power Grid were the gainers.
The BSE MidCap Select index dropped 2.12 per cent, and the SmallCap Select index declined 1.77 per cent.
All sectoral indices ended lower. PSU Bank tumbled 3.88 per cent, realty (3.10 per cent), services (2.86 per cent), auto (2.79 per cent), Bankex (2.70 per cent), financial services (2.69 per cent), consumer discretionary (2.52 per cent), and consumer durables (2.50 per cent).
Brent crude, the global oil benchmark, jumped 1.72 per cent to USD 109.9 per barrel.
The rupee tanked 86 paise to close at yet another all-time low of 94.82 (provisional) against the US dollar on Friday.
In Asian markets, South Korea's benchmark Kospi and Japan's Nikkei 225 index ended lower, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index settled in positive territory.
Markets in Europe were trading in the red.
The US market ended sharply lower on Thursday.
"Profit booking set in after the recent two-session rally as the rupee fell to an all-time low amid sustained FII selling, while escalating tensions in the Middle East heightened caution among investors ahead of the weekend," Vinod Nair, Head of Research, Geojit Investments Limited, said.
Stock markets were closed on Thursday on account of Ram Navami.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,805.37 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 5,429.78 crore.
"Indian markets witnessed a sharp and uneasy session, with heavyweight energy stocks leading the decline amid a complex mix of policy changes, rising crude prices, and persistent geopolitical uncertainty.
"Adding to the pressure, the Indian rupee weakened further to record lows against the US dollar, underscoring the macro stress building beneath the surface," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
On Wednesday, the Sensex jumped 1,205 points or 1.63 per cent to settle at 75,273.45. The Nifty surged 394.05 points or 1.72 per cent to end at 23,306.45.