Nifty 50 Falls 1.27%, Sensex Drops 1,097 Points; Rs 2.68 Lakh Crore Investor Wealth Wiped Out

Market Update at 04:04 PM: India’s key equity benchmarks ended Friday, March 6, in the negative territory amid rising geopolitical tensions. The Nifty 50 declined 1.27 per cent, while the Sensex fell 1.37 per cent, as investors remained cautious due to the escalating U.S.-Israeli war with Iran, which has pushed oil prices higher and dampened global risk appetite.

The benchmark Nifty 50 opened gap down and extended losses throughout the session, slipping below the 24,500 mark. The index is now over 7 per cent below its all-time high. At the close, the Nifty 50 fell 315.45 points (1.27 per cent) to 24,450.45, while the Sensex declined 1,097 points (1.37 per cent) to 78,918.90. 

The Bank Nifty dropped by over 1,200 points to 57,783.25. Market volatility also surged sharply, with the India VIX, often referred to as the Indian fear gauge, rising 11 per cent to move above 19. On a weekly basis, the India VIX has surged more than 45 per cent.

On a weekly basis, the Nifty 50 declined 2.89 per cent, marking its second consecutive week of losses. Among sectoral indices, the Nifty PSU Bank index recorded the steepest fall this week, dropping over 6 per cent.

The broader market also saw significant wealth erosion. The total market capitalisation of all listed companies declined to Rs 4,49,81,929 crore on March 6 from Rs 4,52,50,021 crore on March 5, resulting in a single-session loss of Rs 2,68,093 crore in investor wealth.

The ongoing conflict has raised concerns of a wider energy supply shock that could push crude prices higher, revive inflation pressures, and cloud the global growth outlook. Brent crude surged over 3 per cent to a 20-month high of USD 86.30 per barrel on Friday and was last trading at USD 85.55. Higher oil prices are typically negative for India, which is the world’s third-largest crude importer.

On the sectoral front, 9 out of 11 key sectoral indices ended in negative territory, even as benchmark indices declined. Meanwhile, broader markets remained under pressure, with the Nifty Midcap 100 and Nifty Smallcap 100 indices ending down 0.69 per cent and 0.24 per cent, respectively. The Nifty Energy index emerged as the top gainer among the sectoral indices, ending 0.13 per cent higher. In contrast, the Nifty Bank index plunged by 2.15 per cent.

Among individual stocks, Reliance Industries gained about 1.11 per cent, helping limit losses in the benchmark indices. The rise followed reports that discounted Russian crude could reduce feedstock costs and potentially boost the company’s refining margins.

Larsen & Toubro, which has significant exposure to the Middle East region, declined 2.2 per cent and is down 7.68 per cent for the week.

Meanwhile, Ircon International surged nearly 10 per cent after reports that the Ministry of Railways has moved a formal proposal to merge IRCON International Limited with Rail Vikas Nigam Limited (RVNL).

The key contributors supporting the Nifty 50 were Reliance Industries (+22.81 points), Bharat Electronics (+6.62 points), and Sun Pharmaceutical Industries (+3.54 points). However, the index was dragged down by banking heavyweights including HDFC Bank (-69.45 points), ICICI Bank (-69.28 points), and State Bank of India (-24.09 points).

Market breadth remained weak on March 6. Out of 3,295 stocks traded on the NSE, 1,317 advanced, 1,874 declined, and 104 remained unchanged. During the session, 30 stocks hit their 52-week highs, while 196 stocks touched their 52-week lows. Additionally, 81 stocks were locked in Upper Circuits, whereas 68 stocks hit Lower Circuits.

Market Update at 2:13 PM: Indian benchmark equity indices were trading near the day's low on Friday amid weak global cues, as traders closely monitored the ongoing U.S.-Iran conflict in West Asia.

As of 2:00 PM, the Nifty50 was trading 0.84 per cent or 207.60 points down at 24,557.75, while the Sensex was down 0.95 per cent or 756.63 points at 79,259.27.

Among individual stocks, InterGlobe Aviation, ICICI Bank, and Max Healthcare Institute were the Top Losers in the Nifty50 index. On the other hand, Bharat Electronics, Reliance Industries, and NTPC led the gainers.

Broader markets erased gains but continued to outperform the benchmark indices. The Nifty MidCap was down 0.15 per cent, while the Nifty SmallCap was trading marginally higher by 0.03 per cent.

Sector-wise, the Nifty IT index continued to lead gains, up 0.34 per cent, supported by Persistent Systems and Infosys shares. Conversely, the Nifty Realty sector was the worst performer, posting nearly a 2 per cent loss. Godrej Properties, The Phoenix Mills, and Prestige Estates Projects dragged the sector lower.

Other laggards included the Nifty Private Bank and the Nifty Financial Services indices, which also faced selling pressure amid the broader market weakness.

Market Update at 12:27 PM: Indian benchmark equity indices were trading at the day’s low on Friday amid weak global cues, as investors remained cautious while monitoring the evolving situation in West Asia following the ongoing conflict between the U.S. and Iran.

At around 12:00 PM, the Nifty 50 was trading 0.59 per cent or 145.75 points lower at 24,620.15. Meanwhile, the Sensex declined 0.65 per cent or 523.97 points to trade at 79,491.93.

Among the Nifty 50 stocks, InterGlobe Aviation, ICICI Bank, and Max Healthcare Institute emerged as the top losers. On the other hand, Bharat Electronics, Reliance Industries, and NTPC were the Top Gainers in the index.

In the broader markets, indices erased earlier gains but continued to outperform the benchmark indices. The Nifty MidCap index was trading 0.02 per cent lower, while the Nifty SmallCap index was trading flat during the session.

On the sectoral front, the Nifty IT index led the gains, rising 0.66 per cent, supported by buying interest in Infosys and Tata Consultancy Services shares.

Meanwhile, the Nifty Private Bank index declined 1.28 per cent, becoming the worst-performing sector as ICICI Bank and Axis Bank shares dragged the index lower. The Nifty Financial Services and Nifty Bank indices were also among the worst-hit sectoral indices during the session.

Market Update at 09:33 AM: Indian benchmark equity indices opened lower on Friday, tracking weak global cues as firm oil prices dampened investor risk appetite.

As of 9:19 AM, the Nifty50 was trading 0.67 per cent or 166.10 points lower at 24,596.50. Meanwhile, the Sensex declined 0.45 per cent or 565 points to 79,450.91 in early trade.

Among the Nifty 50 constituents, InterGlobe Aviation, ICICI Bank, and Larsen & Toubro were the top losers in the index. On the gaining side, HCLTech, Bharat Electronics, and Infosys emerged as the top performers.

Broader markets, however, outperformed the benchmark indices at the open. The Nifty MidCap index was trading 0.19 per cent higher, while the Nifty SmallCap index advanced 0.46 per cent in early trade.

On the sectoral front, Nifty IT led the gains, rising 1.57 per cent as shares of Infosys and Tata Consultancy Services supported the index.

Meanwhile, Nifty Bank emerged as the top losing sector at the open, dragged down by declines in ICICI Bank and HDFC Bank shares.

Pre-Market Update at 7:49 AM: The Indian benchmark indices, BSE Sensex and Nifty 50, are likely to open lower on Friday, March 6, 2026, tracking weakness in global markets as the escalating conflict in the Middle East between the United States, Israel, and Iran pushed crude oil prices higher.

As of 7:31 a.m., GIFT Nifty was trading around the 24,628 level, at a discount of nearly 168 points compared with the previous close of Nifty futures, indicating a weak start for the Indian equity benchmarks.

Asian markets traded in the red, while the Dow Jones Industrial Average and the broader U.S. stock market declined overnight. Escalating tensions between the United States and Iran lifted crude oil prices, raising concerns about higher inflation and its potential impact on global growth.

Iran has intensified attacks across the Gulf region in retaliation for U.S. and Israeli operations that reportedly killed its supreme leader last weekend. In the latest development, an Iranian missile strike triggered a fire at the Bahrain Petroleum Company Refinery on Thursday. Authorities later brought the blaze under control and extinguished it.

The United States issued a general licence allowing limited Russian oil sales to India as tensions in the Persian Gulf disrupt supplies from a key oil-producing region. The authorisation permits transactions involving Russian crude oil and petroleum products loaded onto vessels before March 5, provided they are delivered to India and purchased by an Indian company. The licence will remain valid until April 4 at 12:01 a.m. Washington time.

The U.S. Dollar Index was steady and poised for its steepest weekly gain in more than a year. The index, which measures the greenback against a basket of currencies, was trading 0.06 per cent lower at 99 but remained on track for a weekly gain of 1.4 per cent, the highest since November 2024.

For March 6, Sammaan Capital Limited and Steel Authority of India Limited will remain under the futures and options ban list.

On March 5, Foreign Institutional Investors were net sellers, selling equities worth Rs 3,752.52 crore. Meanwhile, Domestic Institutional Investors bought shares worth Rs 5,153.37 crore during the session. Foreign Institutional Investors have been net sellers for five consecutive trading sessions.

On Thursday, the Indian stock market ended with strong gains due to short covering after three sessions of heavy losses amid persistent concerns over the ongoing U.S.–Iran conflict. The BSE Sensex jumped 899.71 points, or 1.14 per cent, to close at 80,015.90, while the Nifty 50 gained 285.40 points, or 1.17 per cent, to settle at 24,765.90.

U.S. stock markets ended sharply lower on Thursday as the Middle East conflict entered its sixth day, pushing oil prices higher and weighing on investor sentiment. The Dow Jones Industrial Average dropped 784.67 points, or 1.61 per cent, to 47,954.74. The S&P 500 declined 0.56 per cent to 6,830.71, while the Nasdaq Composite slipped 0.26 per cent to close at 22,748.99.

Among major stocks, Nvidia rose 0.16 per cent, while Advanced Micro Devices fell 1.3 per cent. Microsoft gained 1.35 per cent and Amazon rose 0.98 per cent, whereas Apple declined 0.85 per cent. Tesla slipped 0.09 per cent. In other moves, Southwest Airlines tumbled 6.9 per cent, Chevron gained 3.9 per cent, and Broadcom surged 4.8 per cent.

U.S. Treasury yields rose for the fourth consecutive session. The benchmark 10-year Treasury yield increased by 5 basis points to 4.132 per cent after touching a three-week high of 4.15 per cent. The 30-year bond yield climbed 2.6 basis points to 4.743 per cent after reaching 4.772 per cent, its highest level since February 12. Meanwhile, the two-year Treasury yield rose as much as 5 basis points to 3.60 per cent, the highest level since January 28.

Japan’s benchmark 10-year government bond yield edged higher by 1.5 basis points to 2.170 per cent. The 20-year JGB yield increased 1 basis point to 2.990 per cent, while the 30-year yield remained unchanged at 3.375 per cent. The 40-year JGB yield slipped 0.5 basis points to 3.585 per cent.

Gold prices stabilised after falling more than 1 per cent in the previous session. Spot gold rose 0.7 per cent to USD 5,120 per ounce, while silver prices increased 1.8 per cent to USD 83.73 per ounce.

Crude oil prices were on track for the biggest weekly surge since 2022 as the Middle East conflict disrupted supply. Brent Crude slipped 0.08 per cent to USD 82.46 per barrel, while West Texas Intermediate futures rose 0.68 per cent to USD 79 per barrel.

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