Nifty 50 Falls 402 Points, Sensex Slides Over 1,400 Points as PSU Banks and Auto Stocks Drag

Market Update at 2:14 PM: Indian equity benchmarks Nifty 50 and Sensex were trading near the day’s low on Friday, weighed down by losses in PSU Bank and auto stocks, even as investors assessed mixed signals emerging from ongoing talks between the U.S. and Iran.

The Nifty 50 was trading lower by 402.05 points, or 1.73 per cent, at 22,904.40 as of 14:09 on March 27, 2026. Meanwhile, the Sensex stood at 73,863.67, extending its losses during the session.

Broader markets underperformed the benchmark indices, indicating continued pressure across the wider market. The Nifty MidCap index was down 1.62 per cent, while the Nifty SmallCap index slipped 1.72 per cent.

On the sectoral front, PSU Bank stocks emerged as the top laggards, declining over 3 per cent. Selling pressure was also evident in the Nifty Realty and Nifty Auto indices, which underperformed during the session.

However, some defensive sectors provided support to the market. The Nifty IT and Nifty Pharma indices bucked the broader trend and outperformed amid the ongoing volatility.

Market Update at 12:15 PM: Indian benchmark indices extended losses on Friday, tracking weakness in global equities as investors assessed mixed signals around ongoing talks between the U.S. and Iran.

The Nifty 50 was trading 1.53 per cent, or 355.25 points, lower at 22,945.20. The Sensex declined 1.67 per cent, or 1,260.18 points, to 74,014.96.

Broader markets underperformed the benchmarks, with the Nifty MidCap index falling 1.90 per cent and the Nifty SmallCap index declining 1.81 per cent, indicating broad-based selling pressure.

On the sectoral front, PSU Bank stocks emerged as the top laggards, declining over 3 per cent. The Nifty Realty and Nifty Auto indices also underperformed during the session. However, Nifty IT and Nifty Pharma stocks bucked the trend and showed relative outperformance.

In the commodities market, Brent crude prices declined during the Asian session after U.S. President Donald Trump paused a potential attack on Iran’s energy infrastructure for 10 days, citing progress in talks with the Islamic Republic. He also stated that Iran allowed 10 oil tankers to pass through the Strait of Hormuz as a goodwill gesture toward the U.S.

However, Iran has not officially confirmed any ongoing negotiations with the U.S.

Brent crude’s March expiry contract was trading 0.56 per cent lower at USD 107.41 per barrel.

Market Update at 09:35 AM: Indian equity benchmarks Nifty 50 and Sensex declined in early trade on Friday, tracking losses in global equities as investors assessed mixed signals around the ongoing talks between the U.S. and Iran.

As of 9:18 AM, the Nifty 50 was trading lower by 1.11 per cent or 258.85 points at 23,047.70. The Sensex also slipped 1.18 per cent or 889.02 points to 74,392.45.

Broader markets underperformed the benchmark indices, indicating broader selling pressure. The Nifty MidCap index declined 1.5 per cent, while the Nifty SmallCap index fell 1.55 per cent.

On the sectoral front, PSU Bank stocks emerged as the Top Losers, declining 2.6 per cent. The Nifty Realty and Nifty Media indices also witnessed notable selling pressure, reflecting weak sentiment across rate-sensitive and cyclical segments.

However, the Nifty IT index bucked the broader market trend, gaining 0.61 per cent, supported by defensive buying and potential stability in global tech demand.

In the commodities market, Brent crude prices declined during the Asian session after U.S. President Donald Trump announced a 10-day pause on any attack targeting Iran’s energy infrastructure. He cited progress in talks with Iran and mentioned that Iran allowed 10 oil tankers to pass through the Strait of Hormuz as a goodwill gesture toward the U.S.

Despite these developments, Iran has not officially confirmed any ongoing negotiations with the U.S., leaving uncertainty in the market.

Brent crude was trading 1.26 per cent lower at USD 106.65 per barrel, providing some relief on the inflation front but reflecting ongoing geopolitical uncertainty.

Pre-Market Update at 7:53 AM: Indian benchmark indices Sensex and Nifty 50 are likely to open lower on Friday, March 27, 2026, tracking sharp losses in global markets amid rising tensions in the U.S.–Iran conflict and uncertainty over a potential peace agreement.

As of 7:26 am, GIFT Nifty was trading near the 23,125 level, down by nearly 48 points from the previous close of Nifty futures, indicating a negative start for domestic equities.

Global sentiment remained weak, with Asian markets declining significantly and Wall Street ending sharply lower in the previous session. The Nasdaq fell more than 2 per cent, confirming a correction phase in U.S. equities.

Asian markets traded under pressure on Friday. Japan’s Nikkei 225 declined 1.27 per cent, while the Topix slipped 0.28 per cent. South Korea’s Kospi plunged 2.96 per cent and the Kosdaq dropped 1.33 per cent. Hong Kong’s Hang Seng index futures also indicate a weak opening.

A key trigger for markets remains the ongoing U.S.–Iran tensions. U.S. President Donald Trump stated that attacks on Iran’s energy infrastructure would be paused for 10 days following a request from Tehran, adding that negotiations are progressing “very well.” However, an Iranian official rejected the proposal, calling it one-sided and unfair, keeping geopolitical uncertainty elevated.

Crude oil prices declined after the extension of the negotiation deadline. Brent crude fell 0.76 per cent to USD 107.19 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 0.43 per cent to USD 94.07.

In Japan, government bond yields surged, with the 5-year yield hitting a record high of 1.77 per cent. The 10-year yield rose to 2.30 per cent and the 2-year yield climbed to 1.35 per cent, nearing a three-decade high, indicating tightening financial conditions.

Goldman Sachs has downgraded Indian equities to ‘marketweight’ from ‘overweight,’ citing weaker macroeconomic conditions and slowing earnings growth. It also reduced the Nifty 50’s 12-month target to 25,900 from 29,300, implying a potential upside of around 13 per cent based on moderate earnings growth and a target PE multiple of 19.5x.

China’s industrial profits rose sharply by 15.2 per cent year-on-year in the first two months, compared to 0.6 per cent growth last year, reflecting improved industrial activity. Meanwhile, the U.S. dollar remained firm near multi-month highs, trading at 99.93 against a basket of currencies and on track for a 2.3 per cent monthly gain.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 1.25. On the Put side, the 23,000 strike has significant open interest, making it a crucial support level. The 23,300 level also shows notable support. On the Call side, heavy open interest at 23,500 suggests strong resistance, indicating limited upside unless this level is breached.

Technically, Wednesday’s high of 23,465 is expected to act as immediate resistance for Nifty 50. A break below 23,000 could lead to further downside towards 22,800 and 22,650. On the upside, 23,465 remains a key hurdle.

In the F&O segment, SAIL remains under the ban list for March 27.

Institutional flows continue to show divergence. On March 25, Foreign Institutional Investors (FIIs) were net sellers worth Rs 1,805.37 crore, marking their 19th consecutive session of selling. Domestic Institutional Investors (DIIs) bought equities worth Rs 5,429.78 crore, providing some support to the market.

The Indian stock market was closed on Thursday due to Ram Navami. On Wednesday, the indices ended with strong gains, with the Sensex rising 1,205 points or 1.63 per cent to 75,273.45, and the Nifty 50 gaining 394.05 points or 1.72 per cent to close at 23,306.45.

On Wall Street, markets closed sharply lower. The Dow Jones fell 469.38 points or 1.01 per cent to 45,960.11. The S&P 500 dropped 1.74 per cent to 6,477.16, and the Nasdaq declined 2.38 per cent to 21,408.08. Technology stocks led the decline, with Nvidia down 4.16 per cent, AMD falling 7.49 per cent, Meta dropping 7.92 per cent, Alphabet down 3.06 per cent, Microsoft easing 1.37 per cent, and Tesla declining 3.59 per cent.

In commodities, gold steadied around USD 4,400 per ounce after a sharp fall in the previous session, while silver gained 0.5 per cent to USD 68.33.

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