Mumbai, March 23, 2026, 13:20 IST
Indian equities took a hit Monday. By 12:30 p.m. IST, the BSE Sensex was off 1,958.04 points, or 2.63%, at 72,574.92. The Nifty 50 dropped 2.72% to 22,484.85—marking its weakest showing since April 9, 2025.
This is hitting India right where it hurts: oil prices are stuck near $112-$113 a barrel for Brent, the rupee just slid to a record 93.94 per dollar, and 10-year benchmark yields climbed to 6.796%, a level not seen in over a year. Investors are looking at a classic oil-and-currency squeeze.
Selling pressure knocked both the Sensex and Nifty into correction territory last week, with each down at least 10% from their recent peaks. Foreign portfolio investors have pulled $9.57 billion from Indian equities in March alone. Since the war began last month, NSE-listed stocks have lost roughly $365 billion in market value.
“Renewed geopolitical tensions and consequent movements in crude oil prices will continue to act as key external drivers,” said Ajit Mishra, senior vice president of research at Religare Broking. India’s volatility index shot up to 26.1—levels not seen since early June 2024. Every one of the 16 major sectors was in the red. Reuters
India tracked broader Asia’s move, though with less intensity. The Nikkei in Japan dropped 3.5%, South Korea’s main index tumbled 5.8%, and China’s CSI300 slipped 2.4%. Ongoing risks tied to Gulf energy sites kept investors on edge throughout the region.
Losses kept piling up across the board. HDFC Bank, which carries the most weight on the benchmarks, shed another 2.5%—that’s after tumbling 7.4% over two sessions following the sudden exit of part-time chairman Atanu Chakraborty. State Bank of India came under pressure as well, sinking 3.6% on the back of a 63.37-billion-rupee tax demand. The metals sub-index took a 4% hit.
It wasn’t just the blue chips taking hits. By 12:30 p.m. IST, only 521 stocks were up while 3,265 fell. The Nifty Smallcap 100 dropped 3.82%, and Midcap 100 slid 3.45%.
Oil is the wildcard for what happens next. AMP’s Shane Oliver flagged the risk that the conflict could grind on for “many weeks,” driving crude prices as high as $150 a barrel. UTI AMC’s Anurag Mittal, on the other hand, argued that a real inflation scare only kicks in if oil holds well above $100 for two to three months. Reuters
There’s still a floor under the market. Sensex added 0.44% Friday—bargain seekers stepping in after a rough stretch. VK Vijayakumar of Geojit Investments pointed out that sharp foreign outflows have turned financial stocks “attractive and investable” for local investors. Reuters
Crude’s leading the way for now. Investors are watching for flash purchasing managers’ indexes on Tuesday—those early monthly snapshots of business activity—to gauge how far the energy shock is passing through to the broader economy. Hedge funds, according to a Goldman Sachs prime brokerage note, dumped emerging Asia stocks last week at the fastest clip since April 2025, with most of the action centered on Taiwan, South Korea, and India.
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