Closing Bell: Nifty 50 Plunged 2.6%, Sensex Tanked Over 1,800 Points; Rs 13.63 Lakh Crore Wiped Out Amid Middle East Tensions

Market Update at 04:20 PM: On Monday, March 23, India’s benchmark indices, the Nifty 50 and the Sensex, ended sharply lower, declining by around 2.5 per cent. The sell-off reflected a broader risk-off sentiment across Asian markets, as escalating tensions in the Middle East kept crude oil prices elevated and intensified concerns over global growth and corporate earnings. On the day, a total of Rs 13,64,763.86 crore in market capitalisation was wiped out on the BSE.

The Nifty 50 opened with a gap-down of 290 points and extended its losses throughout the session. In the second half of the trade, the index slipped further to its Intraday low, finding some support near the 22,470 level. At the close, the Nifty 50 declined by 601.85 points, or 2.6 per cent, to settle at 22,512.65. The Sensex plunged by 1,836.57 points, or 2.46 per cent, ending at 72,696.39.

The broader market also remained under pressure. The Bank Nifty index fell by 3.72 per cent to close at 51,437.75, while the India VIX, the market’s fear gauge, surged 17.17 per cent to end above 22.81, indicating heightened volatility.

Geopolitical tensions escalated after U.S. President Donald Trump set a Monday deadline of around 23:45 GMT (05:15 IST, Tuesday) for Tehran to reopen the Strait of Hormuz or face potential strikes on its power infrastructure. In response, Iran warned it would retaliate by targeting energy and water assets across the Gulf, further aggravating market concerns.

The Indian rupee weakened sharply against the U.S. dollar, falling to a record low of 93.9475, amid fears of a prolonged conflict in the Middle East.

Crude oil prices remained elevated, adding to inflationary concerns. West Texas Intermediate futures rose 1.5 per cent to USD 99.69 per barrel, while Brent crude climbed over 1 per cent to USD 113.59 per barrel as the conflict entered its fourth day.

On the sectoral front, all 11 key sectoral indices ended in negative territory, reflecting broad-based selling. Broader indices also witnessed significant declines, with the Nifty Midcap and Nifty Smallcap 100 indices falling by 3.9 per cent and 3.94 per cent, respectively.

The Nifty Metal index emerged as the top loser, plunging 4.81 per cent, with all its constituents closing in the red. The index also recorded its steepest intraday decline in the past one month. The Nifty Realty and Nifty PSU Bank indices followed, each declining by over 4 per cent. In contrast, the Nifty IT index managed to limit its losses, slipping just 0.18 per cent. All other sectoral indices declined in the range of 3 per cent to 4 per cent.

In terms of index contribution, HCL Technologies added 5.74 points, Power Grid Corporation of India contributed 4.46 points, and Infosys added 0.69 points. On the downside, HDFC Bank dragged the index by 121.68 points, followed by ICICI Bank with 35.53 points and Bharti Airtel with 31.59 points.

Market breadth remained decisively negative. Out of 3,325 stocks traded on the NSE, 332 advanced, 3,008 declined, and 80 remained unchanged. A total of 19 stocks touched their 52-week highs, while 962 hit their 52-week lows. Additionally, 33 stocks were locked in Upper Circuits, whereas 242 stocks hit Lower Circuits.

Market Update at 2:38 PM: Indian equity markets witnessed sharp selling pressure on the day, though indices recovered partially from intraday lows after Prime Minister Narendra Modi stated that continuous efforts are being made to ensure energy supply through the Strait of Hormuz.

The Nifty 50 was trading lower by 569.20 points, or 2.46 per cent, at 22,545.30, while the Sensex declined 1,801.41 points, or 2.42 per cent, to 72,731.55 as of 14:33 on March 23, 2026.

Market breadth remained extremely weak, with 46 out of 50 Nifty 50 stocks plunging at the open. Shriram Finance, InterGlobe Aviation, and Jio Financial Services emerged as the Top Losers. In contrast, Tech Mahindra and HCLTech managed to trade in the green, bucking the broader market trend.

Volatility surged significantly, with the Nifty India Volatility Index jumping 19.11 per cent to 27.17, indicating heightened uncertainty among investors.

Broader markets underperformed the benchmarks, as the Nifty MidCap index declined 3.69 per cent and the Nifty SmallCap index fell 4.16 per cent, reflecting deeper cuts in the wider market.

On the sectoral front, the Nifty Metal index was the worst performer, slipping over 4 per cent. The Nifty PSU Bank and Nifty Construction Durable indices also witnessed sharp declines, underperforming the broader market.

Global cues remained negative amid escalating geopolitical tensions. Brent crude prices surged after U.S. President Donald Trump warned that the U.S. would obliterate Iran’s power plans if the country failed to open the Strait of Hormuz within 48 hours. In response, Iran threatened to target energy infrastructure across the Middle East.

Brent crude was trading at USD 109.19 per barrel, up 2.57 per cent as of 12:57 PM on the Intercontinental Exchange.

Market Update at 12:36 PM: Indian equity benchmarks, the Nifty50 and the Sensex, slumped sharply, tracking losses in global equities amid rising geopolitical tensions following U.S. President Donald Trump’s ultimatum to Iran.

The Nifty50 declined 607.40 points, or 2.63 per cent, to 22,507.10, while the Sensex fell 1,930.33 points, or 2.59 per cent, to 72,602.63 as of 12:28 PM on March 23, 2026.

Market breadth remained weak, with 46 out of 50 Nifty50 stocks opening in the red. Shriram Finance, InterGlobe Aviation, and JSW Steel emerged as the top losers, while Oil and Natural Gas Corporation and HCLTech were among the few gainers, bucking the broader trend.

Investor nervousness spiked significantly, as reflected in the NSE Nifty India Volatility Index, which jumped 15.39 per cent to 26.32, indicating heightened uncertainty in the market.

Broader markets underperformed the benchmark indices, with the Nifty MidCap and Nifty SmallCap indices declining 3.49 per cent and 3.87 per cent, respectively.

On the sectoral front, the Nifty Metal index was the worst performer, plunging over 4 per cent. The Nifty PSU Bank and Nifty Construction Durable indices also witnessed sharp declines.

In the commodities market, Brent crude prices moved higher after U.S. President Donald Trump warned of severe action against Iran if it failed to open the Strait of Hormuz within 48 hours. In response, Iran threatened to target energy infrastructure across the Middle East.

Brent crude’s April futures contract was trading 1.53 per cent higher at USD 108.04 per barrel, adding to inflationary concerns and further pressuring global markets.
 

Market Update at 09:34 AM: India’s benchmark indices, the Nifty50 and the Sensex, witnessed a sharp decline in early trade on Monday, tracking losses in global equities as geopolitical tensions escalated following U.S. President Donald Trump’s ultimatum to Iran.

As of 9:15 AM, the Sensex was trading lower by 2 per cent, or 1,481.95 points, at 73,051.10, while the Nifty50 declined 2.02 per cent, or 467.85 points, to 22,646.65.

Investor sentiment remained fragile, reflected in the NSE Nifty India Volatility Index, which surged 10 per cent to 25.09, indicating a sharp rise in market uncertainty.

The broader markets also remained under pressure, with the Nifty MidCap and Nifty SmallCap indices falling 1.90 per cent and 2.18 per cent, respectively.

On the sectoral front, the Nifty PSU Bank index emerged as the worst performer, declining nearly 3 per cent. The Nifty Bank and Nifty Metal indices also underperformed during the session.

In the commodities market, Brent crude prices edged higher after U.S. President Donald Trump warned that the U.S. would obliterate Iran’s power plans if the country did not open the Strait of Hormuz within 48 hours. In response, Iran threatened to target energy infrastructure across the Middle East. Brent’s May futures contract was trading 0.66 per cent higher at USD 107.11 per barrel.

Meanwhile, gold futures declined 3.34 per cent as the ongoing U.S.-Iran tensions continued to influence inflation expectations and the outlook for borrowing costs.

Pre-Market Update at 7:48 AM: India’s benchmark indices, the Sensex and Nifty 50, are likely to open lower on Monday, weighed down by global market weakness amid rising inflation concerns linked to the escalating U.S.-Iran conflict. As of 7:17 am, GIFT Nifty was trading around the 22,820 level, down by nearly 313 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.

Global cues remain weak, with Asian markets trading sharply in the red and U.S. equities declining last week. The S&P 500 ended at a six-month low as the conflict entered its fourth week, denting investor sentiment. Market participants will closely monitor key triggers this week, including developments in the U.S.-Iran war, crude oil price trends, FII activity, rupee movement, and major domestic and global economic data.

Asian markets slumped on Monday as escalating geopolitical tensions weighed on sentiment. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.2 per cent. Japan’s Nikkei 225 plunged 3.70 per cent, while the Topix declined 3.38 per cent. South Korea’s Kospi dropped 4.73 per cent and the Kosdaq slipped nearly 3.5 per cent. Hong Kong’s Hang Seng index was down 2.5 per cent after opening.

The U.S.-Iran conflict has entered its fourth week, with both nations threatening to target critical infrastructure. Iran stated that the Strait of Hormuz would be “completely closed” if the U.S. follows through on President Donald Trump’s threat to attack its power plants. Trump has issued a 48-hour deadline for reopening the strait, raising fears of further escalation.

Crude oil prices remained volatile after a sharp rally. Brent crude futures were down 0.27 per cent at USD 107.32 per barrel but still up 55 per cent for the month. U.S. crude traded at USD 97.55 per barrel, reflecting continued uncertainty in energy markets.

On the domestic front, India’s eight core infrastructure sectors recorded a slower growth of 2.3 per cent in February, compared to 3.4 per cent a year ago. For the April–February period, cumulative growth stood at 2.9 per cent, lower than 4.4 per cent in the same period last year, indicating a moderation in economic momentum.

Bond yields have surged globally amid inflation concerns. The 10-year U.S. Treasury yield climbed to an eight-month high of 4.41 per cent, rising 44 basis points since the conflict began. Japanese government bond yields also moved higher, with the 10-year yield hitting a two-month high.

Foreign Portfolio Investors (FPIs) have remained aggressive sellers in 2026, pulling out over Rs 1 lakh crore from Indian equities so far. As per NSDL data, total outflows stood at Rs 1,01,527 crore, with Rs 88,180 crore of selling recorded in March alone.

The U.S. dollar strengthened as geopolitical tensions boosted demand for safe-haven assets. The dollar index rose 0.03 per cent to 99.53.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 0.80. On the put side, the 22,800 and 23,600 strikes saw meaningful additions in open interest, while 22,500 and 23,000 hold substantial open interest, making them key support zones. On the call side, open interest concentration is seen from 23,300 onwards, indicating strong resistance at higher levels. Overall, 22,500 remains a crucial support, while upside may face selling pressure.

Technically, Tuesday’s low of 22,470 is expected to act as immediate support for the Nifty. A break below this level could lead to further downside towards 22,400 and 22,300. On the upside, 23,400 is likely to act as a key resistance level.

In the derivatives segment, Sammaan Capital and SAIL remain under the F&O ban for March 23.

On the institutional front, Foreign Institutional Investors (FIIs) were net sellers on March 20, offloading equities worth Rs 5,518.39 crore, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 5,706.23 crore. FIIs have now remained net sellers for 16 consecutive sessions.

On Friday, Indian markets ended higher, supported by a short-covering rally after the previous session’s sharp fall. The Sensex rose 325.72 points, or 0.44 per cent, to close at 74,532.96, while the Nifty 50 gained 112.35 points, or 0.49 per cent, to settle at 23,114.50.

However, U.S. markets closed sharply lower on Friday. The Dow Jones Industrial Average fell 0.96 per cent to 45,577.47, while the S&P 500 declined 1.51 per cent to 6,506.48, marking its lowest level since September. The Nasdaq Composite dropped 2.01 per cent to 21,647.61. For the week, the S&P 500 fell 1.9 per cent, while the Dow and Nasdaq declined over 2 per cent each.

Among major stocks, Nvidia fell 3.15 per cent, Apple declined 0.39 per cent, Microsoft dropped 1.84 per cent, Meta Platforms fell 2.15 per cent, Alphabet declined 2.27 per cent, and Tesla plunged 3.24 per cent. Super Micro Computer witnessed a sharp fall of 33.32 per cent.

In commodities, gold slipped below USD 4,400 per ounce, extending its decline for the fourth consecutive week amid rising inflation concerns and liquidity pressures. Spot gold fell 1.26 per cent to USD 4,438 per ounce, while silver declined 0.83 per cent to USD 67.56 per ounce.

Disclaimer: The article is for informational purposes only and not investment advice.