Indian stock market: The Indian stock market remained under heavy selling pressure for the third straight session on Friday, March 13, with benchmark indices the Sensex and the Nifty 50 declining about 2% each.
The Sensex fell 1,471 points, or 1.93%, to close at 74,563.92, while the Nifty 50 dropped 488 points, or 2.06%, to settle at 23,151.10. Broader markets also witnessed sharp losses, with the BSE 150 Midcap Index plunging 2.61% and the BSE 250 Smallcap Index sliding 2.67%.
Both the Sensex and the extended their decline for the third consecutive week. During the week, the Sensex lost 4,355 points, or 5.5%, while the Nifty 50 dropped 1,300 points, or 5.3%.
“Markets witnessed a sharp correction during the week, with both the Nifty and Sensex posting steep losses amid escalating geopolitical tensions and a surge in energy prices. The BSE Sensex declined 4,354.98 points or 5.52% to close at 74,563.92, while the Nifty 50 fell 1,299.35 points or 5.31% to settle at 23,151.10, marking one of the steepest weekly declines in recent years,” said Ajit Mishra, SVP, Research, Religare Broking.
Stock Market Outlook next week
According to Ponmudi R, CEO of Enrich Money, the week ahead is expected to remain highly volatile, with market direction largely influenced by developments surrounding the ongoing conflict in the Middle East.
“Investors will closely track statements from key government officials and global stakeholders involved in the situation for any signals of escalation or potential diplomatic de-escalation. These developments will play a crucial role in determining crude oil price trends, global bond yields, and currency market volatility. Particular focus will remain on the Strait of Hormuz, a critical energy chokepoint, where any prolonged disruption to shipping could tighten global oil supplies, influence inflation expectations across Asia, and keep overall risk sentiment fragile/
Additionally, FII flows and movements in the Indian rupee will remain key indicators, as global capital allocation toward emerging markets such as India continues to be influenced by geopolitical developments and commodity price volatility,” Ponmudi said.
Top 5 triggers for the Indian stock market
1] US Federal Meeting
The US Federal Reserve is all set to begin its two-day meeting on March 17 and will announce the outcome on March 18.
The Federal Reserve’s key policy rate currently stands in the range of 3.5% to 3.75%. At its January meeting, the Fed chose to leave interest rates unchanged. Before that, the central bank had implemented three consecutive rate cuts, reducing rates by 0.25 percentage points each time in an effort to prevent the slowdown in the labour market from leading to a rise in unemployment.
2] US-Israel-Iran war
Donald Trump said on Saturday that the United States could launch additional strikes on Kharg Island even as Iran has vowed retaliation following Friday’s attack. According to media reports, Trump said that while Tehran appears willing to negotiate an end to the conflict, “the terms aren’t good enough yet.”
He added that the US strikes had “demolished” much of Kharg Island, and said the US might target it again, stating that “we may hit it a few more times just for fun.”
3] Crude oil prices
Global crude oil prices were trading slightly lower after the US Department of the Treasury announced a 30-day waiver permitting all countries to purchase Russian oil currently stranded at sea.
The move comes a week after the US allowed India to buy Russian oil that had been loaded onto vessels as of March 5, providing temporary relief to concerns over global supply.
Brent crude was trading at $99.99 per barrel, down 0.47%, while West Texas Intermediate (WTI) declined 0.67% to $95.09 per barrel.
However, worries over a prolonged conflict in West Asia and the possibility of a blockade of the Strait of Hormuz limited the downside in oil prices.
“Geopolitical developments will remain the key factor to watch, as their impact on crude oil prices is likely to influence overall market direction,” Mishra added.
4] Gold and silver prices
Gold declined on Friday and headed for its second consecutive weekly loss as the conflict in the Middle East kept crude oil prices above $100 per barrel, sustaining global inflationary pressures.
fell as much as 1.4%, pulling back to around $5,000 per ounce amid a strengthening US dollar. Despite the decline, gold has still risen about 16% so far this year and has largely remained above the $5,000-an-ounce mark.
Meanwhile, spot silver also dropped sharply, falling 4.2% to $80.29 per ounce on Friday.
“Gold prices have retreated for a second consecutive week, shedding nearly -1.50% in international markets to trade below $5,100/ounce. This downward trend was mirrored in India, where prices dipped more than 1% to fall below the Rs. 160,000 mark. The primary catalysts for this decline are a strengthening US Dollar—bolstered by rising oil prices and geopolitical concerns in the Middle East—and a surge in US Treasury yields to 4.27%, both of which have placed significant pressure on the precious metal,” said Aamir Makda, Commodity & Currency Analyst at Choice Broking.
5] FII Activity
Foreign institutional investors (FIIs) sold domestic equities worth ₹52,704 crore during the first half of March, with Friday recording the largest single-day outflow of 2026 at ₹10,717 crore.
On a year-to-date basis, foreign portfolio investors (FPIs) have pulled out ₹66,051 crore from Indian equities.
“The weakness in global equity markets following the war in West Asia, the steady depreciation of the rupee and concerns surrounding the impact of high crude prices on India’s growth and corporate earnings contributed to the concern of FPIs. The poor returns from India vis-à-vis other markets – both developed and emerging- during the last eighteen months are the principal reason for FPI’s indifference towards India. If their sustained selling strategy is to change, there should be clear indications of earnings recovery in India. In the present uncertain context, this will take time.
Now, FPIs regard South Korea, Taiwan and China as better markets to invest in since they are relatively cheaper than India even after the recent correction. Also, the corporate earnings prospects in these markets appear better than those of India. Therefore, further selling by FPIs in India is likely in the short term,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Technical Outlook
Nifty 50
According to Ponmudi, has witnessed heightened selling pressure after failing to sustain above key resistance levels, resulting in the index drifting toward important support zones.
He further noted that the index is currently approaching the 23,000 region, which is emerging as a crucial near-term support level. A sustained break below this zone could extend the decline toward 22,800–22,700, an area that has previously acted as a demand zone. From a broader perspective, long-term supports are seen around 21,800 and 18,600, which historically have served as major structural support levels.
“On the upside, 23,500–23,800 is expected to act as the immediate resistance zone, and a decisive move above this range would be required to restore any positive momentum in the near term. Momentum indicators remain weak, with the RSI hovering in the mid-20s, indicating oversold conditions, while the MACD continues to remain in deep negative territory, reflecting persistent bearish undertones. Overall, the short-term outlook remains bearish, with the possibility of consolidation or continued volatility around current levels,” Ponmudi said.
Bank Nifty
Bank Nifty has been trading under sustained pressure and continues to underperform the broader market, primarily due to weakness in private banking stocks. The index is currently hovering near the 53,700 zone, which remains a critical support area. Sustaining above this level is essential to prevent further downside. A breakdown below 53,500 could accelerate selling pressure, potentially dragging the index toward 53,000–52,200 in the near term
On the Bank Nifty outlook, he added, “On the upside, 54,700 acts as the immediate resistance level, followed by the key 55,000 psychological mark, which needs to be decisively reclaimed to indicate any meaningful recovery in the index. Momentum indicators continue to remain weak, with the RSI around 23 indicating deeply oversold conditions, while the MACD remains in negative territory, suggesting that recovery attempts may remain limited unless stronger buying interest emerges. The near-term outlook for Bank Nifty therefore remains cautious with a negative bias.”
Sensex
Sensex has also remained under pressure in line with the broader market weakness and is currently testing important support levels in the 74,500–74,000 zone.
“A sustained break below this region could open the door for further downside toward 73,500–73,000. On the upside, immediate resistance is placed near 75,600, where selling pressure has recently emerged. While selective participation from heavyweight stocks may provide intermittent support to the index, the broader market structure continues to remain cautious amid ongoing global uncertainties. The near-term outlook for Sensex remains weak with a negative bias, with investors likely to prefer selective accumulation on declines rather than aggressive positioning in the current environment,” he added.
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