Equity benchmark indices BSE Sensex and NSE Nifty ended the final trading session of FY 2025–26 with steep losses on Monday, as the prolonged West Asia conflict and rising crude oil prices continued to weigh heavily on investor sentiment.
Weak cues from Asian markets and persistent foreign fund outflows further deepened the bearish tone in domestic equities.
Extending losses for the second consecutive session, the 30-share Sensex plunged 1,635.67 points, or 2.22 per cent, to close at 71,947.55.
During intra-day trade, it had dropped as much as 1,809.09 points, or 2.45 per cent, to touch 71,774.13. Market breadth remained decisively negative, with 3,563 stocks declining, 876 advancing, and 154 remaining unchanged on the BSE. Similarly, the 50-share Nifty tumbled 488.20 points, or 2.14 per cent, to settle at 22,331.40.
Analysts attributed the sharp downturn primarily to escalating geopolitical tensions in the Middle East, which have dashed hopes of de-escalation. The resulting spike in crude oil prices has heightened concerns around inflation and macroeconomic stability, particularly for oil-importing countries like India.
Weak global signals—including declines across Asian and US markets—along with sustained foreign institutional investor (FII) outflows and a weakening rupee, further dampened market sentiment.
Among Sensex constituents, major losers included Bajaj Finance, State Bank of India, InterGlobe Aviation, Bajaj Finserv, Axis Bank and Kotak Mahindra Bank. On the other hand, Tech Mahindra and Power Grid Corporation of India managed to close in positive territory.
Global oil benchmark Brent crude rose 2.18 per cent to USD 115.1 per barrel, adding to inflationary pressures and investor concerns.
Over the last two trading sessions, the Sensex has declined by 3,325.9 points, or 4.41 per cent, while the Nifty has dropped 975.05 points, or 4.18 per cent.
For the full financial year 2025–26, the Sensex fell 5,467.37 points, or 7 per cent, and the Nifty declined 1,187.95 points, or 5 per cent, reflecting a challenging year for equities.
Also read: Rupee settles at 94.78 against US dollar
Broader markets also faced significant pressure, with the BSE MidCap Select index falling 3.13 per cent and the SmallCap Select index dropping 2.14 per cent.
Sector-wise, all indices ended in negative territory. Auto, FMCG, consumer durables, capital goods, realty, private banking, and PSU banking stocks declined between 2 and 4 per cent.
Notably, the BSE PSU Bank index dropped 4.60 per cent, while indices tracking mid and small private banks, banking, financial services, telecommunications, and real estate sectors also recorded sharp losses.
Banking stocks were particularly impacted following the Reserve Bank of India’s new restrictions on banks’ foreign exchange positions aimed at stabilising the rupee. This move triggered notable declines across both private and public sector lenders.
Experts noted that while valuations have become more attractive after the recent correction, the outlook for corporate earnings revisions will remain a key factor driving market direction. Continued volatility in oil prices and a weakening rupee could increase input costs and raise the risk of near-term earnings downgrades.
Meanwhile, the rupee recovered slightly to close 7 paise higher at 94.78 (provisional) against the US dollar after a highly volatile session, during which it touched an all-time intra-day low of 95.22.
Across Asia, markets also faced heavy selling pressure. South Korea’s Kospi and Japan’s Nikkei 225 index both dropped nearly 3 per cent, while Hong Kong’s Hang Seng index ended lower. However, China’s Shanghai SSE Composite index managed to close in positive territory.
European markets were trading marginally higher, offering some contrast to the broader global weakness.
In the United States, markets had ended sharply lower on Friday. The Nasdaq Composite fell 2.15 per cent, the Dow Jones Industrial Average declined 1.73 per cent, and the S&P 500 dropped 1.67 per cent.
Foreign institutional investors continued to exit Indian equities, selling shares worth Rs 4,367.30 crore on Friday. In contrast, domestic institutional investors provided some support by purchasing equities worth Rs 3,566.15 crore.
Foreign investors have withdrawn a massive Rs 1.14 lakh crore (approximately USD 12.3 billion) from Indian equities in March, marking the worst monthly outflow on record. This exodus has been driven by escalating tensions in West Asia, rupee weakness, and concerns about the impact of elevated crude oil prices on India’s economic growth.
In the previous session on Friday, the Sensex had already fallen 1,690.23 points, or 2.25 per cent, to close at 73,583.22, while the Nifty declined 486.85 points, or 2.09 per cent, to settle at 22,819.60.
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