Sense͏x Plun͏ges 1,097 Point͏s, Nifty Closes Bel͏o͏w 24,450 as Financial Stocks Drag Mar͏ke͏t L͏ower͏

Mumb͏a͏i͏, March ͏6: Indian equity market͏s suffered their steepest sing͏le-dayde͏cl͏ine in over ͏a m͏onth on Friday, ͏with th͏e ͏B͏SE S͏e͏nsextu͏mblin͏g 1,097 points to settle at 78,91͏9, while ͏t͏he ͏N͏if͏ty 50 slip͏ped 315 points to close ͏at 24,450͏. The sharp sell-of͏f, trigger͏ed by escalating West As͏ia ͏tensions͏ and surging ͏crude͏ oil prices, m͏arked the second consecutive weekly͏ ͏decline for b͏enchmarkin͏dices, wit͏hb͏oth͏ indice͏s͏ loggi͏ngt͏heir steepest͏ wee͏klyfal͏l ͏in͏ over a year.

The Nifty Bank index ͏bore th͏e brunt of the selling,͏ cr͏ashing 1,273 points͏ in its w͏orst͏ singl͏e-day p͏erfo͏rmance si͏n͏ce April 2025. Broader͏ markets showed͏ relative resili͏enc͏e, with th͏e Nifty͏ Midca͏p 100 declini͏ng 0.7 pe͏r cent and the Ni͏fty Smallcap 100͏ s͏hedding jus͏t 0.͏2 per ͏cent, ͏eve͏n ͏a͏s mar͏ket breadth r͏emained firmly neg͏ative w͏ith an advance-decli͏ne ratio of 2:͏3 on th͏e N͏ation͏a͏l͏ S͏tock E͏xch͏ange.

Banking ͏a͏nd Financial Stocks Suffer Worst Sell-Off, Nifty Private B͏ank P͏lunges 2.21%

The financial services sector emerged as the primary drag on benchmark indices, with all banking sub-indices closing deep in the red. The Nifty Private Bank index tumbled 2.21 per cent to 27,433, while the Nifty PSU Bank index crashed 2.11 per cent to 9,175. The Nifty Financial Services 25/50 index declined 2.06 per cent to 28,935, reflecting broad-based selling across lenders.

ICICI Bank, Axis Bank, and Shriram Finance emerged as the top losers among Nifty constituents, with heavyweights HDFC Bank also contributing significantly to the benchmark declines. Concerns over valuations and sustained foreign institutional selling resurfaced as primary triggers for the banking rout, according to market participants.

Realty and Auto Indices Crack Over 1% as West Asia Tensions Rattle Investor Sentiment

The Nifty Realty index emerged as the worst-performing sector, crashing 1.98 per cent to close at 743, extending its weekly losses. The Nifty Auto index declined 1.05 per cent to 27,080, weighed down by fears that elevated crude oil prices could dampen demand and squeeze margins in the automotive sector.

Nifty Media and Nifty Metal indices also ended lower, shedding 0.61 per cent and 0.34 per cent respectively. The Nifty FMCG index managed marginal gains of 0.05 per cent to 50,024, while the Nifty IT index inched up 0.16 per cent to 30,175, bucking the broader downtrend amid selective buying in technology stocks.

Defence Stocks Rally Up to 15% as Strategic Partnerships and Merger Talks Boost Sentiment

Defence stocks emerged as the sole bright spot in an otherwise gloomy session, with the defence index surging nearly 3 per cent amid renewed optimism around domestic order flows and strategic developments. Bharat Electronics emerged as a top Nifty gainer, while Garden Reach Shipbuilders and Engineers signed a Memorandum of Understanding with Kalyani Strategic Systems to jointly develop indigenous advanced naval systems and unmanned platforms for domestic and global markets.

Railway PSU stocks rallied as much as 11 per cent following reports of a potential mega merger between RVNL and IRCON, which could create a formidable rail infrastructure entity. Mazagon Dock Shipbuilders jumped 15 per cent this week, continuing its upward trajectory amid sustained interest in defence manufacturing themes.

Liquor Stocks Defy Market Crash, Surge Up to 7% on Karnataka Excise Reforms

Liquor stocks emerged as unlikely gainers despite the broader sell-off, with United Spirits, Radico Khaitan, United Breweries, and Tilaknagar Industries surging between 4 per cent and 7 per cent intraday. The sharp uptick followed Karnataka Chief Minister Siddaramaiah’s announcement of a shift to global taxation standards and complete deregulation of alcohol pricing in the state budget.

Karnataka, among India’s largest markets for alcoholic beverages, will introduce an Alcohol-in-Beverage-based excise duty structure from April 2026, taxing alcohol based on its strength while reducing pricing categories to eight from 16. The government has set an ambitious revenue target of ₹45,000 crore for the 2026-27 financial year from excise, projecting 12.7 per cent growth from the current fiscal’s ₹36,492 crore.

Brent Crude Surges Past $85 as Iran Conflict Disrupts Shipping Through Strait of Hormuz

Global oil prices headed for their biggest weekly surge since 2022 as the widening conflict in West Asia unleashed unprecedented disruption across energy markets. Brent crude climbed above $85 per barrel, while West Texas Intermediate prices neared $81, following US submarine strikes on an Iranian warship in the Indian Ocean and near-total halts in shipping through the Strait of Hormuz.

US President Donald Trump signalled imminent action to reduce pressure on prices, while the Treasury Department eased curbs on India’s ability to buy Russian oil. However, Iran launched retaliatory attacks against neighbouring countries hosting US forces, marking a full week of strikes affecting nations across the Middle East and keeping risk sentiment fragile.

Volatility Index India VIX Jumps 45% This Week, Highest Since April 2025

The India VIX, often called the market’s fear gauge, surged 45 per cent this week to its highest level since April last year, taking its yearly surge to nearly 110 per cent. The spike in volatility reflected growing uncertainty among traders as geopolitical tensions showed no signs of de-escalation and global peers remained under pressure.

The MSCI all-world stock index was on track to drop 2.6 per cent in its biggest weekly fall since March 2025, while European stocks showed modest recovery with the STOXX 600 rising 0.45 per cent. US futures remained little changed, though the Dow Jones Industrial Average had skidded 1.6 per cent or 785 points in the previous session.

Market Capitalisation Erodes by ₹3 Lakh Crore as Selling Pressure Intensifies

Investor wealth eroded by approximately ₹3 lakh crore in Friday’s session, as selling pressure intensified across large-cap and mid-cap segments. The Nifty Midcap 100 index declined nearly 400 points, while the Nifty Smallcap 100 index managed marginal gains of 0.1 per cent, indicating selective buying in broader markets despite benchmark weakness.

Among Nifty constituents, 40 stocks ended in the red, with ICICI Bank, Eternal, Shriram Finance, Axis Bank, and UltraTech Cement emerging as the top losers. On the gainers list, Bharat Electronics, Reliance Industries, NTPC, ONGC, and Sun Pharma posted modest gains, providing some cushion against deeper declines.

The Indian rupee weakened further to trade at 91.69 per US dollar intraday, compared to the previous close of 91.60, reflecting sustained capital outflows and cautious global risk environment. Domestic institutional investor inflows continued to cushion the market against continued selling by foreign portfolio investors, though the magnitude of Friday’s decline overwhelmed buying support.