Indian Stock Market Suffers Third Consecutive Day of Decline, Notches Over 900-Point Fall

Indian Equities Extend Losses for Third Straight Session

Market Update

The Sensex and Nifty indices declined by 1.2% and 1.33% respectively on Friday, extending their losses for the third consecutive session. The Sensex closed at 75,121.84, down 912.58 points, while the Nifty traded at 23,324.30, down 314.85 points.

Sectoral Performance

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All 16 major sectoral indices on the National Stock Exchange (NSE) traded in the red, with the Nifty Smallcap100 and Nifty Midcap100 indices declining by 2.18% and 1.89% respectively. Larsen & Toubro, Tata Steel, InterGlobe Aviation, UltraTech Cement, HDFC Bank, and Tech Mahindra were among the major laggards, while Power Grid Corporation of India, Hindustan Unilever, ITC Limited, and Bajaj Finserv were among the gainers.

Global Cues

Global markets remained under pressure amid escalating geopolitical tensions, with indices in Asia, including South Korea's KOSPI, Japan's Nikkei 225, China's SSE Composite Index, and Hong Kong's Hang Seng Index, trading lower. In the United States, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite ended sharply lower, with the Dow Jones falling more than 700 points to settle below the 47,000 mark for the first time this year.

Investment Insights

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Foreign Institutional Investors (FIIs) continued their selling trend in the domestic market, offloading equities worth Rs 7,049.87 crore on Thursday. So far in March, foreign investors have sold shares worth more than Rs 39,000 crore. The Indian Rupee weakened further on Friday, falling 12 paise to a record low of 92.37 against the United States Dollar.

Macro Economic Factors

The Brent Crude Oil price surged after Iranian strikes on two oil tankers raised fears of supply disruptions through the Strait of Hormuz. The global benchmark Brent Crude Oil traded marginally higher at USD 100.5 per barrel on Friday. Rising crude oil prices typically weigh on Indian equities as the country imports a large share of its oil needs, increasing the import bill, widening the current account deficit, and fueling inflation.

Policy Outlook

Investors are awaiting the policy decision of the Federal Reserve, which meets on March 17. The central bank is widely expected to keep interest rates unchanged, but its updated economic projections will be scrutinised for revised inflation estimates. A broader energy shock could reignite inflation, forcing central banks to keep monetary policy tighter for longer, which would pressure equity markets and strain energy-importing economies such as India.