23 March,2026 06:00 PM IST | Mumbai | mid-day online correspondent
Representational image. File pic
Equity benchmark indices Sensex and Nifty plummeted on Monday amid the concerning West Asia conflict.
Indian equities on Monday remained under pressure, witnessing a sharp sell-off as escalating tensions between the US and Iran weighed on global sentiment.
Concerns around potential disruptions in the Strait of Hormuz and threats to energy infrastructure heightened fears of supply shocks, keeping investors on edge.
The Nifty 50 declined 2.6 by over 600 points, while the Sensex fell by 2.5 per cent (over 1,800 points). On the other hand, broader markets also underperformed significantly, with the Midcap 100 and Smallcap 100 indices falling 4 per cent each.
The sharp decline in market indices reflects deepening risk aversion and widespread selling across segments. Sectorally, all indices ended in the red, while market volatility surged. The India VIX rose 19.1 per cent to 27.17, its highest level since early June 2024, signalling elevated near-term uncertainty.
Rising crude oil prices due to the war, which has entered its fourth week, relentless foreign fund outflows and weakness in the rupee have also made investors risk-averse. Brent crude, the global oil benchmark, jumped 0.97 per cent to USD 113.3 per barrel.
Trent, UltraTech Cement, Bharat Electronics, InterGlobe Aviation, Tata Steel, and HDFC Bank were among the major laggards. Whereas HCL Tech, Power Grid, Infosys, and Tech Mahindra were the winners.
In Asian markets, South Korea's benchmark KOSPI, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index ended sharply lower. The KOSPI dived the most by 6.49 per cent.
Markets in Europe were trading with deep cuts. The US market ended significantly lower on Friday.
Vinod Nair, Head of Research, Geojit Investments Ltd, while expressing his views on the downward trajectory of Indian stock indices, said, "Domestic markets witnessed a sharp decline, mirroring weakness across Asian markets amid escalating tensions in the Middle East and concerns over potential disruptions to global energy supplies," as cited by PTI.
"Investor sentiment turned cautious following Trump's 48-hour ultimatum to Iran on the Strait of Hormuz," Rising global bond yields signalled heightened inflation and fiscal concerns, while the rupee falling to a record low further pressured markets and triggered FII outflows," Nair added.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,518.39 crore on Friday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 5,706.23 crore. Foreign investors have pulled out Rs 88,180 crore (about USD 9.6 billion) from Indian equities so far this month.
