Markets capped their worst week in over 15 months on Friday, with investors losing approximately ₹20 lakh crore in market capitalisation across five sessions as the US-Iran conflict drove crude oil past $100 per barrel and pushed the rupee to an all-time low.
The BSE Sensex plunged 1,470.50 points, or 1.93 per cent, to close at 74,563.92, while the Nifty 50 fell 488.05 points, or 2.06 per cent, to settle at 23,151.10 — a fresh 10-month low. The BSE market cap dropped to ₹430.02 lakh crore on Friday alone, a single-session wipe-out of ₹9.70 lakh crore. For the week, the Sensex shed 7,375 points, or 5.5 per cent, and the Nifty lost 1,300 points, or 5.3 per cent — marking Nifty’s worst monthly fall since the pandemic crash of March 2020.
Sectoral damage was sweeping. Nifty Bank fell 7 per cent; Nifty Auto plunged over 10.5 per cent, its worst weekly performance since March 2020; Nifty Midcap shed 4.6 per cent; and Nifty SmallCap declined 3.65 per cent. On the BSE, 3,439 stocks declined against just 858 advances; 563 stocks hit 52-week lows. Friday’s Nifty 50 had only three gainers: Tata Consumer Products (+2.29 per cent to ₹1,082), HUL (+1.17 per cent to ₹2,161.80), and Bharti Airtel (+0.09 per cent to ₹1,803). Losers were led by L&T (-7.38 per cent to ₹3,445), Hindalco (-6.07 per cent to ₹910.90), Tata Steel (-5.41 per cent to ₹183.01), JSW Steel (-4.49 per cent to ₹1,120), and Grasim (-3.86 per cent to ₹2,570).
Three developments shook the markets. The Strait of Hormuz closure sent Brent crude surging, a critical blow for India, which imports nearly 88 per cent of its oil. The rupee hit an all-time low of ₹92.48 per dollar amid relentless FII outflows, even as the RBI intervened by selling dollars. The Trump administration’s trade investigation into India has added a third layer of uncertainty. The India VIX climbed above 22, up over 13 per cent for the week.
Vikram Kasat, Head Advisory at PL Capital, said the selloff appeared more sentiment-driven than fundamental. …”The correction appears more sentiment-driven rather than a reflection of weakening domestic fundamentals. Any meaningful correction should be seen as an opportunity for long-term investors to gradually accumulate quality large-caps and sector leaders with strong earnings visibility.”…
Dilip Parmar, Senior Research Analyst at HDFC Securities, pointed out that the rupee’s pressure isn’t going away soon. …”Surging global crude oil prices and sustained foreign fund outflows amid heightened risk aversion have kept the rupee under significant pressure,”… with immediate resistance seen at 92.50–92.70.
N. ArunaGiri, CEO of TrustLine Holdings, noted that history suggests the worst may be close. …”Almost without exception, in most crises, the bulk of the price damage tends to happen within the first few days of the outbreak of the conflict.”… He advised a selective, gradual approach to deploying capital in the broader markets.
Technically, the Nifty’s 14-period RSI has slipped to around 24, deep in oversold territory. Nagaraj Shetti of HDFC Securities warned that without a bounce from near 22,900 next week, further weakness toward 22,500–22,000 cannot be ruled out. Immediate resistance sits at 23,500. Amol Athawale of Kotak Securities added that the weak formation is likely to persist below 23,400 on the Nifty and 75,000 on the Sensex, with potential downside toward 22,800 and 73,600, respectively. The market direction next week will hinge on US-Iran developments, crude oil trajectory, and the pace of FII outflows — with the rupee and Bank Nifty’s 53,500 support the two key levels to watch.
Published on March 13, 2026
