Markets suffered a decisive selloff on Friday, with benchmark indices snapping a two-session recovery and closing sharply lower as geopolitical tensions around the US–Iran conflict, a record rupee depreciation, and broad institutional selling combined to drive the steepest single-day fall of the week.
The BSE Sensex declined 1,690.23 points or 2.25 per cent to close at 73,583.22, while the NSE Nifty 50 fell 486.85 points or 2.09 per cent to end at 22,819.60. The Nifty opened 133 points lower and remained under sustained selling pressure throughout the session, closing near the day’s low. The index has now fallen 9.37 per cent, or 2,359.05 points, from 25,178.65 since the West Asia conflict erupted on February 28, and has registered its fifth consecutive weekly decline, shedding 1.27 per cent over the week.
The selloff was broad-based and decisive. PSU Banks led sectoral losses, falling 3.88 per cent, followed by Realty at 3.10 per cent, Auto at 2.79 per cent, and Financial Services at 2.69 per cent. Private Banks and Consumer Durables also dropped more than 2 per cent. No sector provided meaningful support to the indices during the session. The CPSE segment was the only pocket of marginal relative strength. Nifty Midcap and Nifty Smallcap indices mirrored the benchmark, falling 2.23 per cent and 1.74 per cent respectively. BSE market breadth collapsed, with the advance-decline ratio shrinking to 0.23.
NSE cash market volumes surged 25 per cent over the previous session, partly due to semi-annual index rebalancing. India VIX climbed over 8 per cent during the day to close at 26.80, signalling elevated fear and uncertainty. On the Nifty, Put-Call Ratio stood at 0.89, with heavy call writing at 23,000 and 23,200 capping upside, while put writers were positioned at 22,500.
“Markets extended their decline on Friday, ending sharply lower and continuing the ongoing corrective phase amid weak global cues…the index failed to gain traction and eventually settled near the day’s low,” said Ajit Mishra, SVP Research, Religare Broking.
President Trump extended the pause on strikes targeting Iran’s energy infrastructure until April 6 and reiterated diplomatic engagement possibilities, but markets drew limited comfort as Tehran continued retaliatory actions with no visible alignment on US proposals.
On the daily chart, the Sensex formed a bearish Marubozu candlestick, with the intraday high nearly equal to the open and the low near the close, reflecting uninterrupted selling from the opening bell. Nifty also formed a strong bearish candle after facing rejection near its 10-day EMA, with RSI at 35 and MACD in negative territory. On the weekly chart, Nifty formed a long-legged Doji, hinting at indecision, but analysts said confirmation of any reversal requires a breakout above the week’s high. The 23,000 level, breached during the session, now turns to immediate resistance.
The SBI Funds Management research note on the Middle East conflict, released in March, had flagged that the Strait of Hormuz disruption represents a purer supply shock than past geopolitical episodes, with no meaningful bypass route, and that “…if the SoH closure persists, prices will continue rising until recessionary demand compression takes hold.” The note further projected India’s current account deficit widening by up to $70 billion under a scenario where crude holds near $100 per barrel for the full year.
Adding to the macro pressure, the Indian rupee fell 83 paise in a single session to breach 94.80 per dollar, its sharpest fiscal-year fall in over a decade. Crude oil crossed $100 per barrel, gaining over 1.5 per cent in domestic markets, while gold rose 1.3 per cent and silver gained 1.8 per cent on safe-haven demand.