Indian stock market: The Indian stock market closed the week largely flat with a slight negative bias, indicating cautious sentiment among participants. While the first three sessions maintained a positive tone, a sharp sell-off on Thursday wiped out earlier gains, followed by a volatile final session.
Finally, the slipped 0.16% to end at 23,114.50, while the BSE Sensex dipped 0.04% to settle at 74,532.96, for the week.
According to Ponmudi R, CEO – Enrich Money, the Indian equity markets witnessed a highly volatile yet stabilizing week, with sentiment showing signs of short-term relief following last week’s sharp correction.
Ponmudi noted that the geopolitical tensions in the Middle East continued to remain elevated, some moderation in crude oil prices helped limit further downside, enabling indices to consolidate near key support zones. However, the week was largely marked by sharp intraday fluctuations, driven by ongoing geopolitical developments and continued volatility in crude oil prices.
Stock Market Outlook next week
Experts believe that are likely to remain highly volatile and event-driven, with near-term direction largely contingent on developments in the Middle East, particularly the evolving situation around the Strait of Hormuz, in the coming week.
“Any prolonged disruption could keep crude prices elevated above the $100 mark, intensifying inflationary and current account pressures while sustaining a risk-off sentiment. FII flows, rupee movement, and global cues—including US dollar strength and broader market sentiment—will be key variables to monitor. Any signs of de-escalation or easing in crude prices could trigger short-covering or relief rallies, while renewed escalation may lead to further downside pressure,” Ponmudi added.
Top 5 triggers for the Indian stock market
1] US-Israel-Iran war
The US–Israel–Iran conflict entered a fresh and critical phase on Sunday, March 22, after US President Donald Trump issued new warnings to Iran over the Strait of Hormuz. Iranian media reported a strike on the Natanz nuclear facility, while disruptions in the key global shipping route persisted, intensifying concerns over energy supplies and regional stability.
As per market experts, tensions in the Middle East will continue to be the key trigger for the Indian stock market in the upcoming week.
2] Crude oil prices
On Friday, were down 2.10% at $105.53 per barrel. Meanwhile, WTI crude was trading 2.72% lower at $92.95 per barrel versus the prior closing level of $95.55.
During the week, renewed geopolitical tensions following Israel’s attack on Iran’s energy infrastructure pushed crude oil prices back toward recent highs near $119 per barrel. Although prices moderated slightly thereafter, they remain elevated.
“Developments in the West Asia conflict and movements in crude oil prices will continue to act as key external drivers and are likely to dictate the near-term market trend,” Ajit Mishra – SVP, Research, Religare Broking, said in a note.
3] Rupee rate
The rupee plunged 64 paise to close at a record low of 93.53 against the US dollar on Friday, pressured by continued foreign fund outflows and a sharp spike in crude oil prices amid escalating geopolitical tensions.
Forex traders, as quoted by PTI, said that the Indian currency remains under significant strain as rising oil prices and a shift toward risk aversion have weakened investor sentiment. They further added that increasing geopolitical uncertainty is pushing energy costs higher, which could expand the trade deficit and fuel inflationary pressures.
“The rupee witnessed sharp weakness, depreciating by over ₹1 to 93.70 against the dollar, as markets aggressively priced in the negative impact of elevated crude oil prices. The macro environment remains unfavorable for the rupee, with higher energy costs and persistent dollar demand weighing on sentiment. Unless crude prices ease meaningfully, the rupee is likely to stay under pressure.
In the near term, the rupee is expected to trade in a weaker range of 93.00–94.25 against the US dollar,” said Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities.
4] Gold and silver prices
Gold and silver prices dropped by as much as 5% on Friday as the US dollar strengthened following reports that the United States would deploy additional troops to the Middle East, raising concerns over higher oil prices, inflation, and consequently, elevated interest rates.
Spot gold declined 1.8% to $4,563.64 per ounce after earlier gaining 1%, while spot silver slipped 4.8% to $69.39.
“Gold remained highly volatile, opening with an uptick near $4700 and ₹148000, largely driven by short covering after the sharp sell-off seen in the previous session. The broader sentiment continues to remain weak, as key macro triggers are still unfavorable. Interest rates are expected to stay elevated, while ongoing geopolitical tensions are keeping crude prices firm, sustaining inflation concerns and limiting upside in gold,” Trivedi added.
5] FII Activity
Foreign investors (FIIs or FPIs) were net sellers of Indian equities worth ₹5,518 crore on March 20, 2026, as per provisional exchange data, while domestic institutional investors (DIIs) emerged as net buyers with purchases worth ₹5,703 crore.
During the session, DIIs bought shares worth ₹22,938 crore and sold ₹17,232 crore. In comparison, FIIs purchased equities worth ₹28,496 crore but offloaded shares worth ₹34,015 crore.
So far this year, FIIs have recorded net sales of ₹1.37 crore in Indian equities, whereas DIIs have been net buyers to the tune of ₹1.99 crore.
“Institutional flow data provides deeper insight into the underlying market dynamics. FIIs remained aggressive sellers during the week, with net outflows of nearly ₹29,900 crore in the cash segment. In contrast, DIIs absorbed this pressure with net inflows exceeding ₹30,600 crore, resulting in marginally positive net flows. This divergence highlights the growing role of domestic liquidity as a stabilizing force,” said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
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