Mumbai, March 4, 2026, 22:34 IST — Market has closed.
Indian equities took another hit Wednesday, marking the fourth straight day of declines as renewed Middle East concerns pushed investors to dump riskier holdings. The Nifty 50 dropped 1.55% to finish at 24,480.50, while the BSE Sensex lost 1.40%, settling at 79,116.19.
Crude took the spotlight. Brent futures climbed 3.1% to $83.95 a barrel as of 10:00 GMT, pushing their four-day rally to about 18.7%. That’s reignited inflation fears and concerns over India’s import-heavy oil bill. “Any sharp spike in oil prices has implications for current account deficit, fiscal deficit and inflation,” Macquarie analysts led by Suresh Ganapathy said. Reuters
Currency markets weren’t spared either. The rupee skidded to 92.3025 per dollar—marking its first dip beyond the 92 mark. Yields on the 10-year benchmark bond climbed 4 basis points, now at 6.717%. “The Middle East conflict is acting as a catalyst but the broader trend for the INR has been clearly on the weaker side,” said Tanay Dalal at Axis Bank. Reuters
Selling hit hard, scattering across risk-on pockets like banks, autos, metals, and travel. By afternoon, the Nifty Auto index had dropped 3.24% to 26,649. Tata Steel and L&T both took sharp blows during parts of the session. Airline stocks also lost ground amid disruption anxiety—InterGlobe Aviation sank as much as 5%, SpiceJet tumbled 8%, both reacting to reports of flight cancellations.
Local numbers failed to calm markets. The latest services PMI pointed to ongoing expansion in February, but growth slowed and input costs surged — the steepest increase in two and a half years. Not ideal timing, with energy prices heading higher.
The direction isn’t set yet. If crude retreats, or if supply routes hold up, some of the selling could ease off. Still, should oil prices remain high and overseas money shifts to safety, stocks and the rupee could stay under strain.
With Indian markets closed for Holi on Tuesday, traders faced a backlog—forced to react to the global downturn all at once in Wednesday’s session. The next market closures aren’t due until later this month, according to the calendar.
Thursday could see traders watching both crude prices and the rupee, gauging if swings ripple into small- and mid-cap stocks. Moves in bond yields or fuel costs might leave banks and transport shares exposed.
All eyes now shift to the U.S. labour data at the end of the week, as traders weigh its impact on rate-cut bets after recent moves in energy markets. The U.S. Employment Situation report drops Friday, March 6.
Back in India, investors are watching for the next inflation number to gauge the impact from higher energy costs. The February consumer price index is set for release on March 12, as per the statistics ministry’s calendar.
