Edgen Stock·Mar 31 2026, 18:22Key Takeaways:
Indian equities witnessed their worst single-day crash of the year, with the BSE Sensex plunging 1,836.57 points, or 2.46 percent, to close at 72,696.39 as escalating geopolitical tensions in the Middle East sent crude oil prices soaring above $113 a barrel.
"The sharp sell-off in Indian equity markets is driven by the escalating US-Iran geopolitical conflict, with threats to the Strait of Hormuz, a critical artery for over 20 percent of global oil supplies," said Pranay Aggarwal, Director and CEO of Stoxkart.
The selloff was broad-based, with all sectoral indices ending in the red. On the BSE, only 582 stocks advanced while 3,530 declined. The consumer durables, metals, realty, and banking sectors were the worst hit, falling between four and five percent. A few technology stocks, including HCL Tech and Infosys, were among the only gainers.
The oil price surge exacerbates imported inflation for India, eroding corporate profitability and pressuring the rupee. This amplified sustained foreign institutional investor outflows amid global risk aversion, leading to substantial erosion of investor confidence and setting the stage for further potential downside.
The 50-share NSE Nifty tanked 601.85 points, or 2.60 percent, to end at 22,512.65, after hitting an 11-month low during the session. The market rout was triggered by fears of a wider conflict after US President Donald Trump issued a 48-hour ultimatum to Iran over the weekend, prompting warnings of retaliatory strikes on energy infrastructure.
The macroeconomic fallout for India was immediate. The rupee breached the 94-per-dollar level for the first time, slumping 50 paise to a new record closing low of 94.03 against the greenback. The surge in crude prices and unabated foreign fund outflows unnerved investors, pushing Indian government bond yields higher. Foreign Portfolio Investors (FPIs) have sold over Rs. 1 lakh crore in Indian equities so far in 2026, according to market data.
Among the 30 Sensex firms, Titan was the biggest loser, tumbling 6.24 percent. Other major laggards included Trent, UltraTech Cement, Tata Steel, and HDFC Bank, which hit a fresh 52-week low after the recent resignation of its chairman.
The volatility is expected to remain elevated. Analysts at Bajaj Broking noted that the Nifty has retraced over 78.6 percent of its previous major rally and that the key support zone now lies in the 22,000–21,700 range.
This article is for informational purposes only and does not constitute investment advice.