Indian stock markets witnessed a sharp decline on Monday afternoon, with benchmark indices SENSEX and NIFTY50 trading deep in the red. The market downturn was mainly driven by rising crude oil prices and increasing geopolitical tensions in the Middle East, which weakened investor sentiment.
Market Overview
During the afternoon session, the S&P BSE SENSEX dropped nearly 1,948 points (2.47%) to trade at 76,970.62 around 12:37 PM. Meanwhile, the NSE NIFTY50 slipped 598.80 points (2.45%) to 23,851.65, falling below the 23,900 mark.
Earlier in the day, the SENSEX hit an intraday low of 76,424.55, falling by 2,494 points, while the NIFTY touched a session low of 23,697.80.
Adding to the pressure, the Indian rupee weakened to a record low of 92.32 against the US dollar, raising concerns about inflation and the country’s rising import bill.
FII and DII Activity
According to exchange data:
Foreign Institutional Investors (FIIs) sold equities worth ₹6,030.38 crore on Friday.
Domestic Institutional Investors (DIIs) bought stocks worth ₹6,971.51 crore on a net basis.
Despite domestic buying support, heavy global concerns kept the markets under pressure.
Top Losers on NIFTY50
Several major stocks dragged the index lower. The biggest declines were seen in:
Tata Motors – down 5.65%
State Bank of India – down 5.36%
Mahindra & Mahindra – down 5.18%
UltraTech Cement – down 4.99%
Maruti Suzuki India – down 4.98%
Among NIFTY50 stocks, Wipro was the only major company trading in the green, gaining about 0.56%.
Why the Market Is Falling
The sharp decline in the stock market is largely linked to rising crude oil prices triggered by escalating tensions in the Middle East.
Crude oil prices jumped dramatically after supply concerns emerged due to the ongoing conflict involving the United States, Israel, and Iran.
Brent crude surged 27% to $117.65 per barrel
WTI crude rose 28.3% to $116.62 per barrel
This marked the largest single-day gain in oil prices since mid-2022, raising concerns about global inflation and higher fuel costs.
Oil-Sensitive Stocks Under Pressure
Companies that depend heavily on oil prices faced significant selling pressure. These included:
Oil marketing companies (OMCs)
Paint manufacturers
Higher crude prices increase raw material costs for these industries, which impacts their profit margins.
Aviation Stocks Decline
Shares of aviation companies also fell sharply due to rising fuel costs.
InterGlobe Aviation (IndiGo) dropped over 8%, trading around ₹4,035.
SpiceJet declined about 5.29%, trading near ₹13.26.
Aviation turbine fuel (ATF), a major operating cost for airlines, becomes more expensive when crude oil prices surge.
GNFC Stock Hits 52-Week Low
Shares of Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) fell nearly 6%, touching a 52-week low of ₹405.45.
The decline came after the company highlighted supply disruptions in liquefied natural gas (LNG) due to the ongoing Middle East conflict. Its gas supplier received a force majeure notice citing transportation issues affecting LNG supplies.
Cupid Shares Rise After Bonus Issue
Despite the market slump, Cupid Ltd. shares jumped over 12%, reaching an intraday high of ₹92.90.
The rally came after the stock started trading ex-bonus on March 9. The company announced a 4:1 bonus issue, meaning shareholders will receive four new shares for every one existing share.
March 9 was set as the record date, while the bonus share allotment is expected on March 10, 2026.
Meesho Stock Hits Lower Circuit
Shares of Meesho hit the 10% lower circuit, falling to a 52-week low of ₹143.34.
The decline followed a tax demand notice of ₹1,499.73 crore issued by the Income Tax Department related to the assessment year 2023-24.
The company stated that the order involves adjustments to reported income but added that it does not expect any major impact on its financial operations.
Sonata Software Recovers From Lows
Shares of Sonata Software showed some recovery during the session.
The stock initially fell to a 52-week low of ₹238.45
Later it gained over 5%, reaching an intraday high of ₹259.40
The movement followed news that its subsidiary Sonata Software North America has filed a legal case in the U.S. Bankruptcy Court in Delaware to recover $10.64 million in dues and damages from a client.
Outlook for the Market
Market sentiment remains cautious as geopolitical tensions continue to impact global energy markets. Rising crude oil prices could increase inflation risks for India, which relies heavily on oil imports.
Investors are likely to stay watchful of developments in the Middle East and movements in crude oil prices, as these factors may continue to influence market trends in the near term.