ST in Bear Trap: Indices Mark Steepest Drop of Wartime, Down 2% on Oil Woes

Synopsis Indian equity benchmarks ended sharply lower on Friday, marking the sharpest single-day decline since the Gulf war began on February 28, with about ₹33.8 lakh crore of market capitalisation having been wiped out in the two weeks since then. Indian equity benchmarks ended sharply lower on Friday, marking the sharpest single-day decline since the Gulf war began on February 28, with about ₹33.8 lakh crore of market capitalisation having been wiped out in the two weeks since then. With both sides showing no sign of relenting and the Strait of Hormuz effectively closed, crude oil prices stayed at $100 per barrel, triggering broad-based selling across sectors. The BSE Sensex fell 1,470.50 points, or 1.93%, to close at 74,563.92, while the Nifty 50 declined 488.05 points, or 2.06%, to settle at 23,151.10, slipping below the 23,200 mark. Both indices ended at their lowest since April 2025. Market breadth remained weak, with 858 shares advancing, 3,439 declining and 124 remaining unchanged out of 4,421 shares traded. Since the war began, Indian equity markets have seen a sharp correction, with the Nifty 50 falling about 2,028 points, or nearly 8%, and the Sensex declining around 6,700 points, or about 8.3%, by Friday.More Reasonable Valuations | page 5 “Recent geopolitical developments in the Middle East have led to an increase in the risk premium for Indian equities, largely driven by concerns around crude prices and their potential impact on the rupee,” said Rahul Singh, chief investment officer, equities, Tata AMC. However, valuations have become more reasonable, with the Nifty trading around 20 times earnings. Near-term sentiment may remain sensitive to global developments and sectors such as consumer and pharmaceuticals could remain relatively insulated, while metals and energy may benefit from higher commodity prices, Singh said. Live Events Brent crude climbed above $100 per barrel, extending its rally after surging nearly 38% since the West Asia conflict began, when prices were around $72 a barrel. Among Nifty constituents, Larsen & Toubro, Hindalco Industries, Tata Steel and JSW Steel were among the biggest laggards on Friday, while Tata Consumer Products, Hindustan Unilever and Bharti Airtel ended with gains. All sectoral indices closed in the red, with the auto, PSU bank, metal and media indices down 3-4%. The broader markets also remained under pressure, with the Nifty Midcap and Smallcap indices declining around 2.6% each. The sell-off capped one of the most turbulent trading weeks in recent months, with the Nifty 50 losing nearly 6% amid persistent risk-off sentiment sparked by the Gulf conflict. Market volatility also spiked during the week, with the India VIX climbing above the 22 mark, up 5.23%, signalling heightened fear among market participants and expectations of wider price swings in the near term. The automobile sector emerged as one of the worst-hit segments during the week. The Nifty Auto index plunged around 10.7%, marking its steepest weekly decline since March 2020, with every stock in the index ending in the red. Foreign institutional investors (FIIs) have remained consistent sellers of Indian equities in March. On March 13, they offloaded shares worth Rs 10,716 crore. Since the war began on February 28, FIIs have sold equities worth a net Rs 64,419 crore. Domestic institutional investors (DIIs) have provided support to the market. They were net buyers on Friday, purchasing equities worth Rs 9,977 crore. Since the onset of the conflict, DIIs have bought shares worth a cumulative Rs 82,818 crore. Technical charts indicate a further downside in the coming days. “The Nifty has entered the support of previous opening upside gap area of April 15, 2025, around 23,200-22,900 levels,” said Nagaraj Shetti, senior technical research analyst at HDFC Securities. “Though Nifty placed near the supports, still there is no confirmation of any bottom reversal pattern forming. This is not a good sign.” The underlying trend of the market is sharply down. There is a higher possibility of the Nifty showing a minor pullback from near the lows of around 22,900 by next week. If it fails to do so, more weakness may be expected down to 22,500-22,000 levels in the near term. Immediate resistance is placed at 23,500, said Shetti. (This story has not been edited by economictimes.com and is auto–generated from a syndicated feed we subscribe to.) Inside Akasa’s big plans: CEO Dube on profits, fleet orders and why 2032 isn’t the end Tax certainty will attract larger investors, patient capital to GIFT City: IFSCA chairman From small-town India to the robotics frontier: Two founders and a deep-tech dream Out, then in again: How AI put consulting back on IT’s hotlist Value stocks rally shows why profit matters, not just narrative These large- and mid-cap stocks with ‘Strong Buy’ & ‘Buy’ recos can rally over 23%, according to analysts 1 2 3