Markets opened sharply lower on Thursday, March 19, with the BSE Sensex crashing 1,604.53 points, or 2.09 per cent, to 75,099.60, after opening at 74,750.92 against its previous close of 76,704.13. The NSE Nifty 50 fell 480.05 points, or 2.02 per cent, to 23,297.75, after opening at 23,197.75 against its previous close of 23,777.80, as escalating West Asia conflict, a spike in crude oil prices and a hawkish US Federal Reserve combined to trigger a broad-based selloff.
The immediate trigger was Iran’s missile strike on Qatar’s Ras Laffan Industrial City, which caused what officials described as “extensive damage,” while Saudi Arabia intercepted four ballistic missiles targeting Riyadh. Israel’s earlier attack on Iran’s South Pars gas field, the world’s largest LNG refinery, pushed Brent crude past $110 per barrel and WTI near $100 per barrel. Iran has declared Gulf energy assets “legitimate targets,” raising the threat of prolonged supply disruptions.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said: “…Israel hitting the world’s largest LNG refinery in Iran…is bad news for oil and gas importers like India. If Brent remains above $110 for an extended period of time, that will have negative implications for India’s macros. India’s GDP growth and corporate earnings in FY27, too, will be impacted.”
He added: “…The negative reaction of the US market was more in response to the escalation of the war rather than the Fed’s commentary.”
Global markets bore the brunt overnight. The Dow Jones Industrial Average plunged over 750 points, or 1.63 per cent, while the S&P 500 and Nasdaq fell 1.4 per cent and 1.5 per cent respectively, closing at their lowest levels of 2026. Asian markets followed, with Japan’s Nikkei declining 2.68 per cent and South Korea’s KOSPI falling 2.87 per cent.
The US Federal Reserve, in an 11-1 vote, held its benchmark rate steady at 3.50 per cent–3.75 per cent and revised its year-end inflation forecast upward to 2.7 per cent from 2.4 per cent, signalling only a single quarter-point rate cut in 2026. Fed Chair Jerome Powell described the outlook as subject to “unusually high uncertainty.”
Adding to domestic pressure, the Indian rupee hit a record low, breaching ₹92.50 against the US dollar amid thin liquidity ahead of a bank holiday and aggressive importer demand.
On the Nifty 50, only three stocks managed gains. ONGC led with a rise of 0.94 per cent to ₹267.50, followed by NTPC, which edged up 0.20 per cent to ₹379.25, and Coal India, which gained a marginal 0.10 per cent to ₹455.65 — reflecting some resilience in energy and PSU names against the broader carnage.
The losers’ list was dominated by financials and rate-sensitive sectors. HDFC Bank was the steepest faller, dropping 4.63 per cent to ₹804.00. L&T shed 3.45 per cent to ₹3,483.50, while Shriram Finance fell 3.26 per cent to ₹988.30. Tata Motors dropped 3.17 per cent to ₹314.45, and Bajaj Finance declined 3.05 per cent to ₹853.30.
Ponmudi R, CEO of Enrich Money, noted: “…Elevated crude prices directly impact inflation and the import bill, adding pressure on the broader macro environment.”
Institutional flows remained mixed. On March 18, Foreign Institutional Investors sold equities worth ₹2,714.4 crore, extending their selling streak to nine consecutive sessions. Domestic Institutional Investors partially cushioned the blow, buying equities worth ₹3,253 crore.
Hitesh Tailor, Research Analyst at Choice Equity Broking, cautioned: “…Fresh long positions should ideally be considered only after the Nifty convincingly crosses and sustains above the 25,000 mark…”
Technically, the Nifty 50 faces immediate support in the 23,200–23,300 zone, with a decisive break below 22,923 signalling a resumption of the broader downtrend. Resistance for any recovery attempt lies in the 23,500–23,700 band. For the Sensex, support is placed at 76,000–76,400, with resistance near 76,800–77,000.
Vijayakumar offered a note of caution balanced with possibility: “…A prolonged war is no one’s interest. Therefore, a sudden end to the war bringing crude prices sharply down cannot be ruled out.”
Markets will remain closely watched for any signals of de-escalation in West Asia, further central bank commentary, and movement in the rupee — all of which could determine whether Thursday’s sharp decline deepens or stabilises through the session.