Closing Bell: Sensex Tanks 1,635 Points, Nifty 50 Slides 2.14%; Worst Fall in Last 6 Financial Years

Market Update at 04:10 PM: India’s benchmark indices, the Nifty 50 and the Sensex, ended sharply lower on Monday, March 30, declining by over 2 per cent each. The fall marked the weakest financial-year performance for Indian equities in six years, as markets were hit by a combination of geopolitical tensions, U.S. tariffs, and record foreign investor outflows.

The Nifty 50 opened with a gap-down of 269 points and extended its losses to an Intraday low of 22,283.85. Despite heavy volume trades in the final 30 minutes, the index failed to recover. It closed down by 488.20 points, or 2.14 per cent, at 22,331.40. The Sensex dropped 1,635.67 points, or 2.22 per cent, to settle at 73,947.55.

The Bank Nifty index underperformed, declining 3.82 per cent to close at 50,275.35. The fall followed a directive from the Reserve Bank of India (RBI), which instructed banks to cap their net open rupee positions in the foreign exchange market at USD 100 million by the end of each business day. The directive, issued late Friday, must be implemented by April 10. All 14 constituents of the Bank Nifty index ended in negative territory.

Volatility remained elevated, with the India VIX rising over 4 per cent to close above the 27 mark. On a yearly basis, the Nifty 50 and Sensex declined about 5.05 per cent and 7.12 per cent, respectively, in FY26, marking their worst performance since 2020 during the COVID-19-led global sell-off. With markets shut on March 31 for a local holiday, Monday marked the final trading session of the fiscal year.

Indian equities also underperformed their Asian and emerging market peers, with indices hovering near one-year lows. The Indian rupee weakened to a record low of 95 against the U.S. dollar, reflecting concerns over prolonged Middle East tensions. Meanwhile, bond prices fell amid rising crude oil prices.

Crude oil prices remained elevated, with Brent crude rising around 2 per cent to near USD 115 per barrel, further fuelling inflation concerns and dampening investor sentiment.

Sectorally, all 11 major indices ended in the red. Broader markets also witnessed selling pressure, with the Nifty Midcap and Nifty Smallcap 100 indices falling 2.68 per cent and 2.66 per cent, respectively.

Among sectors, the Nifty PSU Bank index emerged as the top loser, declining 4.56 per cent, with all constituents ending lower. The index also recorded its steepest fall in two months and slipped below its 200-day exponential moving average. This was followed by declines of over 3 per cent each in the Nifty Bank and Nifty Financial Services indices. Additionally, the Nifty Realty, Nifty Media, and Nifty Auto indices dropped more than 2 per cent each.

Market breadth remained heavily skewed towards declines. Out of 3,411 stocks traded on the NSE, 570 advanced, while 2,764 declined and 77 remained unchanged. A total of 23 stocks hit their 52-week highs, whereas 1,219 stocks touched their 52-week lows. Additionally, 41 stocks were locked in Upper Circuits, while 256 stocks hit Lower Circuits.

Market Update at 2:14 PM: Indian equity benchmarks traded near the day’s low on Monday, with heavy selling pressure in banking and financial stocks dragging the indices lower. Weak sentiment across key sectors kept investors cautious during the session.

The Nifty 50 declined 1.72 per cent, or 392.85 points, to trade at 22,426.75. Meanwhile, the Sensex fell 1.81 per cent, or 1,334.71 points, to 72,252.76, reflecting broad-based weakness in the market.

Broader markets also extended their losses, underperforming the headline indices. The Nifty MidCap index was down 1.91 per cent, while the Nifty SmallCap index slipped 1.93 per cent, indicating selling pressure across the broader spectrum of stocks.

On the sectoral front, financial stocks remained the biggest draggers. The Nifty Bank, Nifty PSU Bank, and Nifty Financial Services indices saw significant declines, weighing heavily on the overall market performance.

In contrast, the Nifty Metal and Nifty Oil and Gas indices erased earlier gains but continued to outperform other sectoral indices, showing relative resilience despite the broader market downturn.

Market Update at 12:33 PM: The Indian equity benchmarks, Nifty 50 and Sensex, were trading near the day’s low on Monday, weighed down by heavy selling in banking and financial stocks. Weak sentiment across global markets and rising geopolitical tensions further pressured investor confidence.

The Nifty 50 declined 1.15 per cent, or 262.85 points, to trade at 22,556.75, while the Sensex slipped 1.22 per cent, or 898.55 points, to 72,684.67.

Broader markets also extended their losses, reflecting broad-based weakness. The Nifty MidCap index was down 2.28 per cent, while the Nifty SmallCap index fell 2.32 per cent, indicating sustained selling pressure beyond frontline indices.

On the sectoral front, the Nifty Bank, Nifty PSU Bank, and Nifty Financial Services indices emerged as the biggest laggards, dragging the benchmarks lower. Meanwhile, the Nifty Metal and Nifty Oil and Gas indices erased their early gains but continued to outperform other sectoral indices.

In the commodities market, crude oil prices surged amid escalating geopolitical tensions. Brent crude traded higher in the Asian session as supply concerns intensified after Yemen’s Houthi rebels officially joined the conflict on Saturday, launching missile attacks on Israel.

Adding to the uncertainty, U.S. President Donald Trump stated that he could seize Iran’s Kharg Island, while also suggesting that a ceasefire could be reached quickly.

Brent crude’s March contract was trading 3.36 per cent higher at USD 114.95 per barrel on the Intercontinental Exchange.

Market Update at 09:32 AM: Indian equity markets opened sharply lower on Monday, tracking weakness in global markets amid escalating tensions in the prolonged U.S.-Iran conflict.

At 9:16 AM, the Nifty 50 declined 1.23 per cent or 303.30 points to 22,516.30. The Sensex also slipped 1.38 per cent or 1,018.76 points to trade at 72,560.

The broader markets witnessed deeper cuts, with the Nifty MidCap index falling 1.95 per cent and the Nifty SmallCap index declining 2.31 per cent, indicating widespread selling pressure across segments.

On the sectoral front, banking stocks dragged the indices lower, with the Nifty Bank and Nifty PSU Bank emerging as the top laggards. In contrast, the Nifty Metal index showed relative resilience and outperformed the broader market.

Crude oil prices surged in the Asian session as geopolitical tensions intensified supply concerns. The situation escalated further after Yemen’s Houthi rebels officially joined the conflict over the weekend, launching missile attacks on Israel.

Adding to the uncertainty, U.S. President Donald Trump stated that the U.S. could seize Iran’s Kharg Island, while also hinting that a ceasefire agreement could materialise quickly.

Reflecting the heightened risk premium, Brent crude’s March contract rose 3.36 per cent to USD 116.12 per barrel on the Intercontinental Exchange.

Pre-Market Update at 7:53 AM: The Indian benchmark indices, Sensex and Nifty 50, are likely to extend losses and open lower on Monday, tracking weak global cues as the U.S.–Iran conflict enters its fifth week. Rising geopolitical tensions have pushed crude oil prices higher, fuelling inflation concerns and weakening investor sentiment.

As of 7:22 am, GIFT Nifty was trading around the 22,565 level, down nearly 250 points from the previous close of Nifty futures, indicating a gap-down start for domestic markets. Asian markets also traded sharply lower, while U.S. equities ended last week on a weak note. The Dow Jones, S&P 500, and Nasdaq recorded their fifth consecutive weekly decline, marking the longest losing streak in nearly four years.

Investor focus this week will remain on key global and domestic triggers, including developments in the U.S.–Iran conflict, crude oil price movements, trends in FII flows, gold and silver prices, and major macroeconomic data releases.

Asian markets witnessed a sharp sell-off on Monday amid continued geopolitical uncertainty. Japan’s Nikkei 225 declined 4.71 per cent, while the Topix dropped 3.83 per cent. South Korea’s Kospi fell over 3 per cent, and the Kosdaq slipped 3.22 per cent. Hong Kong’s Hang Seng index was also trading 1.66 per cent lower in early trade.

The U.S.–Iran conflict has now entered its second month with no clear signs of de-escalation. The involvement of Iran-backed Houthi forces in Yemen has heightened concerns over global trade disruptions, particularly due to the effective closure of the Strait of Hormuz. Meanwhile, U.S. President Donald Trump has indicated the possibility of targeting Iran’s key oil infrastructure, including the Kharg Island export terminal.

Crude oil prices have surged amid the ongoing conflict. Brent crude rose 1.22 per cent to USD 107.45 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.47 per cent to USD 99.41 per barrel, adding to inflationary pressures globally.

In the U.S., consumer sentiment weakened, with the University of Michigan’s Consumer Sentiment Index falling to 53.3 in March from 55.5 earlier, below the Reuters estimate of 54.0. The index had stood at 56.6 in February, reflecting declining confidence amid economic uncertainties.

On the domestic front, the Reserve Bank of India (RBI) has introduced new regulations capping banks’ open positions in the onshore currency market at USD 100 million at the end of each trading day. These rules will come into effect from April 10.

Japanese government bond yields surged to near three-decade highs, with the 10-year yield rising 2 basis points to 2.39 per cent, its highest level since February 1999. The 5-year yield edged up 0.5 basis points to 1.82 per cent. Minutes from the Bank of Japan (BoJ) meeting indicated that policymakers are considering further rate hikes, driven by rising oil prices and inflationary pressures linked to geopolitical tensions.

The U.S. dollar index, which tracks the currency against six major peers, stood at 100.14 in early trade.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 0.88. On the put side, significant open interest is seen at the 22,500 strike, making it a key support level, followed by 22,000. On the call side, the 23,000 strike holds strong open interest, indicating resistance at higher levels. This suggests that any upside may face selling pressure, while 22,000 remains a crucial support zone.

Technically, last Monday’s low of 22,470 is expected to act as immediate support for the Nifty 50. A break below 22,450 could lead to further downside towards 22,250 and 22,000. On the upside, resistance is seen at 22,630 and 22,800.

Stocks likely to remain in focus include Ceigall India, Dredging Corporation of India, Coal India, Indian Overseas Bank, Tata Motors, RailTel Corporation, G R Infraprojects, Thermax, KNR Constructions, NTPC, Dilip Buildcon, and Enviro Infra Engineers, driven by key project wins, Order Book updates, and corporate developments.

In the derivatives segment, SAIL remains under the F&O ban.

Institutional activity continues to reflect cautious sentiment. On March 27, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 4,367.30 crore, while Domestic Institutional Investors (DIIs) bought shares worth Rs 3,566.15 crore. FIIs have remained net sellers for the past 20 consecutive trading sessions.

On Friday, Indian markets ended sharply lower, extending their losing streak to five consecutive weeks. The Sensex plunged 1,690.23 points, or 2.25 per cent, to close at 73,583.22, while the Nifty 50 declined 486.85 points, or 2.09 per cent, to settle at 22,819.60.

Wall Street also ended lower on Friday, with all three major indices closing at their lowest levels in over seven months. The Dow Jones fell 793.47 points, or 1.73 per cent, to 45,166.64. The S&P 500 dropped 108.31 points, or 1.67 per cent, to 6,368.85, while the Nasdaq Composite declined 459.72 points, or 2.15 per cent, to 20,948.36. Major technology stocks such as Nvidia, Amazon, Microsoft, Meta, and Tesla also recorded losses.

In the commodities market, gold and silver prices declined. Spot gold fell 1.3 per cent to USD 4,436.63 per ounce, while silver dropped 1.9 per cent to USD 68.43 per ounce, erasing recent gains.

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