Equity benchmarks opened sharply lower on Friday morning, extending losses as geopolitical uncertainty around the US–Iran conflict, elevated crude oil prices, and sustained foreign institutional selling weighed on investor sentiment.
The BSE Sensex, which closed at ₹75,273.45 on Thursday, opened at ₹74,883.79 and was trading at ₹74,355.55, down ₹917.90 or 1.22 per cent, as of 9.34 am. The NSE Nifty 50, which closed at ₹23,306.45, opened at ₹23,173.55 and was quoting at ₹23,024.60, down 281.85 points or 1.21 per cent at the same time.
The selloff follows a sharp overnight decline on Wall Street, where the Nasdaq Composite fell 2.4 per cent and entered correction territory, now trading more than 10 per cent below its recent peak. The Dow Jones dropped 400 points while the S&P 500 shed 1.7 per cent. Asian markets mirrored the weakness, with South Korea’s KOSPI falling more than 4 per cent and Japan’s Nikkei declining over 1.6 per cent.
“The on and off reaction of the market to news and events regarding the war is likely to continue in the near-term. The spike in Brent crude back to around $108 level will again trigger another round of risk-off in the Indian market,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
The primary trigger for the global risk-off mood remains the unresolved US–Iran conflict. US President Donald Trump extended the deadline for reopening the Strait of Hormuz to April 6, citing ongoing discussions, but markets showed limited confidence in a near-term resolution. GIFT Nifty was signaling a decline of around 161 points ahead of the open, pointing to a subdued start.
Brent crude futures were trading at $100.98 per barrel, down 0.89 per cent, while WTI crude was at $93.63, down 0.90 per cent, as of 9:09 am on Friday. On the Multi Commodity Exchange, April crude oil futures were at ₹8,872, down 1.41 per cent from the previous close of ₹8,999, and May futures were at ₹8,597, down 1.46 per cent from ₹8,724.
The rupee has slipped beyond the 94 mark, touching record lows, pressured by elevated crude prices, consistent FII outflows, and a stronger US dollar. On March 25, FIIs were net sellers, offloading equities worth ₹1,805 crore. Domestic institutional investors partially offset this, remaining net buyers with purchases totalling ₹5,429 crore.
“With near-term market moves being driven by headlines, investors have a limited edge. Still, we have seen an incremental reset in expectations, valuations, and technical conditions,” said Vikram Kasat, Head Advisory, PL Capital.
Higher fuel costs are already beginning to filter through to the domestic economy. Nayara Energy has raised petrol prices by over ₹5 per litre and diesel by around ₹3. Sectors including aviation, paints, logistics, and cement are expected to bear the brunt of elevated input and transportation costs.
“The Indian economy is strong enough to absorb the shock if the war ends, crude cools down and gas availability becomes normal. But if the war prolongs, crude remains elevated for months together, and gas availability constraints continue, the stress on India’s macros will be significant,” Vijayakumar added.
Among Nifty 50 gainers, energy and IT stocks were holding up. ONGC led with a gain of 2.11 per cent, trading at ₹275.90 against a previous close of ₹270.20. HCL Technologies rose 1.51 per cent to ₹1,402.20 from ₹1,381.30, while TCS gained 1.15 per cent to ₹2,404.80 from ₹2,377.40. Infosys was up 0.58 per cent at ₹1,286.50 against ₹1,279.10 and Wipro added 0.53 per cent to ₹190.05 from ₹189.05.
Financial and consumer stocks led the losses. Shriram Finance was the top loser, falling 3.61 per cent to ₹921.50 from ₹956.00. TVS Motor Company (TMPV) dropped 2.92 per cent to ₹308.65 from ₹317.95. Bajaj Finance slid 2.84 per cent to ₹857.70 from ₹882.75, and Bajaj Finserv fell 2.24 per cent to ₹1,707.00 from ₹1,746.20. Eternal declined 2.22 per cent to ₹236.81 from ₹242.18.
On the technical front, immediate support for Nifty is placed between 23,150 and 23,200, with resistance seen at 23,450–23,500. A decisive break below 23,300 could accelerate selling toward 23,000 and then 22,750. For Bank Nifty, which closed at ₹52,605.65 on Thursday, 53,300–53,000 is immediate support, with a break risking a move toward 52,700–52,500.
“Fresh long positions should ideally be considered only after the Nifty decisively breaks above and sustains the 24,500 level, which would signal stronger sentiment and the potential for a more sustained bullish trend,” said Aakash Shah, Technical Research Analyst, Choice Equity Broking.
Vijayakumar noted that Nifty is now trading at about 19 times earnings, below the 10-year average of 22.4 times, but cautioned: “…if India’s macros take a hit due to this energy crisis, valuations may again decline factoring-in the feared hit to earnings growth in FY27.”