Weekly Market Round͏up: Oil Surges Past $110, Indian M͏arkets Plunge͏ 3% as Middle Ea͏s͏t Conflict Disrupts ͏Supply

Mumbai, March 9: Indian equity markets tumbled over 3% this week as international crude oil prices skyrocketed past $115 per barrel, their highest level since July 2022, following output cuts by major Middle Eastern producers and growing fears of sustained disruption to shipping through the strategic Strait of Hormuz.

The ͏BSE Sensex͏ ͏slum͏ped 3.0͏%͏ over the week to clos͏e͏ ͏at 78,91͏9, while th͏e Nifty 50 settled at 24,450, also d͏o͏wn 3.0% from the previous͏ Friday. The͏ broader market witn͏essed heav͏y s͏e͏l͏lin͏g p͏ress͏ure,͏ w͏ith the Mid-Cap͏ ͏index ͏declining ͏3͏.0% ͏to 57͏,393 and͏ the ͏Small-Cap͏ index͏ falling 2.6%͏ t͏o 16,499.

Oi͏l Ju͏mps 26% in a Single Session as Iraq and Ku͏wait ͏Cut Pr͏oduction

Brent crude recorded its steepest daily gain since the pandemic-era volatility of 2020, leaping 26% to $117 per barrel, building on the previous week’s 28% surge. US crude followed suit, rising 28% to $116 per barrel, threatening to push retail fuel prices sharply higher across the globe.

The supply shock follows precautionary output reductions from Iraq and Kuwait, two of OPEC’s largest producers, after Iran’s threats to shipping routes forced closures through the Strait of Hormuz. Iraq’s production from three main southern oilfields has plummeted by approximately 70%, dropping to 1.3 million barrels per day from 4.3 million barrels. Qatar has also reduced liquefied natural gas shipments, compounding energy security concerns across Asia and Europe.

Bank and Auto Stocks Lead Weekly Decline as Sectoral Indices Tumble Up to 5.1%

The week’s sell-off was broad-based, with rate-sensitive sectors bearing the brunt of the downturn. The Bankex plunged 4.8% to 64,991, while the Finserv index fell 4.6% to 12,482. Auto stocks were particularly hard hit, with the Auto index dropping 4.0% to 59,830 on concerns that rising fuel costs would dampen consumer demand.

The Oil & Gas index emerged as the worst-performing sector for the week, crashing 5.1% to 28,161, closely followed by the Realty index, which also declined 5.1% to 5,770. The Consumer Durables index slipped 3.2% to 57,385, while FMCG stocks edged 2.5% lower to 18,279. Defensive plays offered marginal respite, with the Capital Goods index inching up 0.2% to 70,618 and Healthcare shedding a relatively modest 0.8% to 43,558.

Foreign Investors Pull Out ₹6,030 Crore as Dollar Strengthens to Three-Month High

Foreign institutional investors continued their selling spree during the week, offloading equities worth ₹6,030 crore on March 6, taking the total outflow for the March series to ₹29,842 crore. The sustained selling pressure comes as the US dollar index jumped to a three-month peak against the euro, driven by safe-haven demand amid escalating geopolitical tensions.

Domestic institutional investors provided some cushion, purchasing shares worth ₹6,972 crore on the same day. For the March series so far, DIIs have injected ₹55,230 crore into the markets, partially offsetting the relentless FII exodus. The rupee weakened sharply to ₹91.75 against the US dollar, reflecting the broader risk-off sentiment and the impact of soaring crude prices on India’s import bill.

Nifty Support Level at 23,800 Faces Test as Global Markets Sink

Technical indicators suggest further weakness ahead, with the short-term support level for the Nifty pegged at 23,800 likely to be challenged in the coming sessions. The heightened volatility has prompted traders to hedge leveraged positions amid uncertainty over the conflict’s duration and intensity.

Global markets mirrored the sombre mood, with Asian indices opening sharply lower during the week. Japan’s Nikkei tumbled 5.8% to 55,621, while Hong Kong’s Hang Seng shed 3.4% to 25,757. European markets suffered even steeper losses, with France’s CAC plunging 7.3% to 7,993 and Germany’s DAX sliding 7.2% to 23,591. In the US, the Dow Jones dropped 3.1% to 47,502, while the S&P 500 declined 2.1% to 6,740.

Iran Appoints New Supreme Leader Amid Escalating US-Israeli Conflict

In a development that could reshape the geopolitical landscape, Iran’s Assembly of Experts named Mojtaba Khamenei to succeed his father, Ali Khamenei, as supreme leader on Monday. The appointment locks hardliners firmly in control in Tehran and carries implications that extend far beyond the Middle East, potentially intensifying the ongoing war with the US and Israel.

Saudi Arabia and the United Arab Emirates have joined Iraq and Kuwait in throttling back output or shutting fields entirely, as crude backs up in the Gulf and storage tanks near capacity. Iranian production, already depressed by years of US sanctions, has fallen sharply over the past week, further tightening global supplies.

US Consumer Credit Growth Slows Sharply to $8 Billion in February

US consumer credit growth slowed markedly in February, with the actual increase reported at $8.05 billion, significantly undershooting the anticipated forecast of $12.40 billion. The figure represents a steep decline from the previous month’s revised reading of $25.20 billion, potentially signalling a shift in consumer behaviour towards more cautious spending and borrowing amid economic uncertainty.

China CPI Rises 1.3% in February on Holiday Spending, PPI Remains in Contraction

China’s consumer price index inflation rose 1.3% year-on-year in February, exceeding expectations of 0.9% and accelerating sharply from the 0.2% increase recorded in January. The bump came largely from increased spending during the extended Lunar New Year holiday. Producer prices continued to decline, contracting at a slower-than-expected pace, reflecting persistent deflationary pressures in the manufacturing sector.

US Nonfarm Payrolls Unexpectedly Fall by 92,000 in February

The US economy unexpectedly shed jobs in February, with total non-farm payroll employment edging down by 92,000 jobs, compared to market expectations of an addition of 58,000. January’s job total was revised marginally lower to 126,000 from the preliminary estimate of 130,000, clouding the trajectory of the American labour market and raising questions about the sustainability of economic momentum.

Corporate News: Lupin Facility Gets Two US FDA Observations; DCX Systems Secures ₹68 Crore Order

Lupin’s Ankleshwar facility received a US FDA Form-483 with two observations. DCX Systems secured a ₹68.05 crore order from HAL for custom antennas and power supplies, while KPI Green Energy will develop 445 MW / 890 MWh battery storage projects in Gujarat for GUVNL.

Shyam Metalics reported a 3.1% drop in stainless steel volumes but an 18.81% rise in average realisations. Sarda Energy merged its coal mining subsidiary to streamline operations. NMDC fixed iron ore prices at ₹4,800 per tonne for Baila Lump and ₹4,050 for Baila Fines from March 6.

Telecom revenue crossed ₹1 lakh crore in Q3 December 2025, with adjusted gross revenue up 8.13%. HCLTech hosted the Capability Summit 2026 in Chennai with the Tamil Nadu government and the University of Western Australia. Reliance Consumer Products signed an MoU with Finland’s Fazer for premium chocolates in India.

IRB Infrastructure’s toll revenue rose 22% to ₹746 crore in February. Rajesh Power signed a 65 MW / 130 MWh BESS deal with GUVNL. RailTel and RITES secured orders worth ₹26.72 crore and ₹45.19 crore, respectively.

Anuh Pharma cleared the European EDQM audit, Coromandel began trial production at Kakinada, ACME Solar commissioned a 33.335 MW / 160.48 MWh BESS project, and Ultratech Cement acquired a 26.2% stake in Sunsure Solarpark. Kwality Walls’ Q3 loss widened to ₹178.4 crore, and Meesho faces ₹1,499.73 crore in tax demand. GNFC faces a 40% RLNG supply cut due to GAIL’s Force Majeure.