Markets Slide at Midday; Sensex Sheds 1,200 pts on Middle East Fears

Mumbai, March 27: Indian equity markets came under broad selling pressure on Friday, with benchmark indices declining sharply through the morning session as escalating Middle East conflict rattled investor sentiment. By 11:53 AM, the BSE Sensex was down 1,212.91 points or 1.61%, trading at 74,060.54, while the Nifty 50 shed 351.10 points or 1.51%, settling at 22,955.35 — extending the losing streak that has gripped markets since hostilities in the region intensified.

India VIX spiked 7.98% to 26.61, signalling a sharp rise in investor anxiety and a clear retreat from risk across the market.

Sectoral Trends

Selling was broad-based, with nearly all sectoral indices in the red. NIFTY PSU Bank led the losses, cratering 3.24%, followed by NIFTY Chemicals (-2.79%), NIFTY Financial Services Ex-Bank (-2.78%), NIFTY Midsmall Financial Services (-2.72%), and NIFTY Auto (-2.60%). NIFTY Realty fell 2.65% and NIFTY Media dropped 2.60%. NIFTY Bank declined 2.17% while NIFTY Financial Services lost 2.08%.

NIFTY IT was the lone bright spot, gaining a modest 0.25%, as the rupee’s weakness against the dollar offered some support to export-oriented technology stocks. NIFTY Pharma was flat, and NIFTY Healthcare held relatively firm at -0.10%.

Broader Markets

Broader markets mirrored the benchmark decline. Nifty Midcap 100 fell 1.88% to 54,293.20, Nifty Smallcap 100 dropped 1.79% to 15,612.20, and Nifty Microcap 250 was the sharpest loser in the broader space, down 2.43% to 19,533.45. Nifty 500 declined 1.64% and Nifty Total Market lost 1.67% — reflecting uniform pressure across market-cap segments.

Related Developments

Adding to the negative mood, gold surged ₹1,933 or 1.39% to ₹1,41,426 per 10 grams across all major Indian cities, with COMEX Gold touching $4,443.90 per troy ounce, as investors sought safe-haven cover amid the conflict.

In a move to cushion consumers from surging fuel costs, the government cut excise duty on petrol sharply from ₹13 to ₹3 per litre and eliminated the levy on diesel entirely — though shares of IOCL, HPCL, and BPCL remained under pressure through the session.

Market Context

Friday’s decline reverses the sharp 2.33% rebound seen just two sessions ago on March 25, when ceasefire hopes had briefly lifted sentiment. That optimism has since faded. With Trump’s 10-day pause on strikes offering only limited reassurance, and fresh Israeli strikes reported inside Iran, markets are once again pricing in a prolonged period of uncertainty.

Sources: 

• bseindia.com
• nseindia.com
• https://www.nseindia.com/market-data/live-market-indices
• comex.org
• https://www.ptinews.com/stories-detail/business/govt-slashes-excise-duty-on-petrol-to-rs-3-litre-exempts-diesel/3503183/1