Indian equity benchmark indices, the Sensex and Nifty, concluded the final trading session of the 2025-26 fiscal year on a sharp downward trajectory. The decline was predominantly influenced by the prolonged conflict in West Asia and a surge in crude oil prices, which collectively impacted investor sentiment.
Market Downturn Driven by Global and Domestic Factors
Information was available with The Chenab Times indicating that the bearish trend in domestic equities was further exacerbated by weak performance in Asian markets and continuous outflows of foreign funds. The 30-share BSE Sensex experienced a significant fall of 1,635.67 points, or 2.22 per cent, to close at 71,947.55. Intra-day, the index touched a low of 71,774.13, marking a plunge of 1,809.09 points. Similarly, the 50-share NSE Nifty saw a substantial decline of 488.20 points, or 2.14 per cent, settling at 22,331.40.
Key Contributors to the Sell-off
Among the prominent losers from the Sensex pack were Bajaj Finance, State Bank of India, InterGlobe Aviation, Bajaj Finserv, Axis Bank, and Kotak Mahindra Bank. Conversely, Tech Mahindra and Power Grid emerged as gainers during the trading session. The geopolitical tensions in West Asia have led to a considerable rise in global oil prices, with Brent crude, the international oil benchmark, jumping by 2.18 per cent to USD 115.1 per barrel.
Financial Year Performance Reflects Market Volatility
The concluding fiscal year, 2025-26, proved to be a challenging period for the equity markets. The BSE benchmark recorded a cumulative loss of 5,467.37 points, or 7 per cent, over the year. The Nifty followed suit, dropping 1,187.95 points, or 5 per cent. This performance reflects a broader market sentiment that has been under pressure due to ongoing global uncertainties.
International Markets Mirror Concerns
The downturn in Indian markets was not an isolated event, as international equity markets also exhibited weakness. South Korea’s Kospi and Japan’s Nikkei 225 indices both plunged by nearly 3 per cent. Hong Kong’s Hang Seng index also closed lower, although Shanghai’s SSE Composite managed to end in positive territory. European markets showed marginal gains, while the United States market concluded the previous trading day significantly lower, with the Nasdaq Composite down 2.15 per cent, the Dow Jones Industrial Average down 1.73 per cent, and the S&P 500 down 1.67 per cent.
Foreign Investor Outflows Impact Indian Equities
Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth Rs 4,367.30 crore on Friday, according to exchange data. This outflow contrasts with the buying activity of Domestic Institutional Investors (DIIs), who purchased stocks worth Rs 3,566.15 crore. March witnessed the most significant monthly outflow of foreign capital from Indian equities, amounting to approximately Rs 1.14 lakh crore (around USD 12.3 billion). This substantial withdrawal is attributed to escalating tensions in West Asia, a depreciating rupee, and concerns regarding the economic impact of elevated crude oil prices on India’s growth prospects.
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The Chenab Times News Desk
