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The domestic equity markets witnesses massive selling, as the Iran-US-Israel war escalates, the rupee falls, and crude oil jumps above $100 per barrel.
Stock Market Today.
The domestic equity markets on Friday witnessed massive selling, even as the Iran-US-Israel war escalates, the rupee falls, and crude oil jumps above $100 per barrel. The Nifty50 closed 488.05 points, or 2.06 per cent, lower at 23,151.10, while the Sensex declined 1,460.50 points, or 1.93 per cent, to settle at 74,563.92.
Broader markets mirrored the weakness in frontline indices. The Nifty MidCap index fell 2.62 per cent, while the Nifty SmallCap index declined 2.52 per cent by the end of the session.
Key factors behind market decline
Crude oil surge: Brent crude futures climbed to around $100 per barrel on Thursday amid escalating tensions in West Asia, which raised concerns about potential supply disruptions through the strategically important Strait of Hormuz. However, prices remained largely steady on Friday after the United States issued a 30-day licence permitting countries to purchase Russian oil currently stranded at sea, a move seen as easing near-term supply pressures.
Rupee hits record low: The Indian rupee weakened further in early trade on Friday, falling 12 paise to touch an all-time low of 92.37 against the US dollar. The slide comes as elevated crude oil prices continue to pressure the currency amid the ongoing West Asia conflict. Forex traders attributed the weakness to a stronger US dollar, persistent foreign institutional investor (FII) outflows and fragile sentiment in domestic equities. At the interbank foreign exchange market, the rupee opened at 92.33 and later slipped to a fresh intra-day low of 92.37 against the dollar. On Thursday, the currency had touched a record intra-day low of 92.36 before settling 24 paise lower at 92.25 against the greenback.
Weak global cues: Global markets also signalled risk aversion. The S&P 500 declined 1.5 per cent on Thursday, while the Dow Jones Industrial Average fell 1.6 per cent. The Nasdaq Composite dropped 1.8 per cent, reflecting renewed volatility in Wall Street after a brief period of stability.
Continuous FII selling: Continued FII selling is also taking a toll on the market. According to exchange data, FIIs offloaded equities worth Rs 7,049.87 crore on Thursday. So far in March, foreign investors have sold shares worth more than Rs 39,000 crore.
Iran-US-Israel war: The Iran war is not showing signs of cooling. Heightening geopolitical tensions, Iran’s Supreme Leader Mojtaba Khamenei said on Thursday that Tehran will keep the strategic Strait of Hormuz closed as leverage against the US and Israel, which has stoked concerns about global energy supply and risk assets.
V K Vijayakumar, chief investment strategist at Geojit Investments Ltd, said, “With the heightened uncertainty surrounding the West Asian conflict continuing, globally markets are weak and in unchartered territory. Weakness in the US markets indicate that rebound in the market is some time away. With Brent crude around $100, bulls are on the defensive. With the FIIs persisting with their sustained selling strategy, even large-cap bluechips are under pressure.”
One segment that is weathering the storm is pharmaceuticals. This sector is not impacted by external headwinds. In fact rupee depreciation is a positive for the sector, which is a major exporter. It appears that portfolio churns are happening in favour of pharmaceuticals. There is nothing much investors can do in this challenging times other than remaining calm and continuing with systematic investment, he added.
March 13, 2026, 10:51 IST
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