Equities Fall for Second Day as West Asia War Keeps Investors on Edge

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

Amey Bane/iStockphoto.com

By Dehuti Jani

March 12, 2026 at 11:34 AM IST

Indian equity benchmarks declined for a second consecutive session on Thursday as the raging West Asia war kept investors jittery, with Iran stepping up attacks on oil and transport facilities across the region and pushing crude oil prices to around $96.50 per barrel. The Nifty50 fell 0.95% or 227.70 points to 23,639.15, while the BSE Sensex lost 1.08% or 829.29 points to 76,034.42. The rupee dropped to a fresh record low of 92.3575 per dollar, adding to the pressure on an economy already grappling with higher import costs, inflation risks and fiscal concerns.

Mahindra & Mahindra, Eicher Motors, and Maruti Suzuki led losses in Nifty 50. Twelve of sixteen sectors fell, with Nifty Auto performing worst due to gas curbs and shortages; Nifty FMCG and Realty also declined. Nifty Oil and Gas outperformed, while power stocks rose on early summer demand expectations. Nifty MidCap 100 dropped 0.37% and SmallCap 100 fell 0.69%, mirroring the broader market decline.

Adding a fresh layer of trade uncertainty, the US on Wednesday announced trade investigations into excess industrial capacity across 16 major trading partners including India, signalling a rebuilding of tariff pressure after the Supreme Court struck down much of President Trump's earlier tariff programme last month.

A diplomatic bright spot emerged, however, as Iran indicated it would allow Indian-flagged ships to pass safely through the Strait of Hormuz following discussions between External Affairs Minister S Jaishankar and his Iranian counterpart on shipping safety and India's energy security.

Top Movers of the Day

Power Grid Corporation rose 1.74% to ₹304, topping gainers with high volumes amid power sector resilience.

Infosys plunged 0.81% to ₹1,265, leading IT losers as sector entered bear territory on global cues.

Adani Total Gas surged nearly 7% to ₹609 today, leading gainers amid high volumes despite market weakness.

HPCL shares fell as Brent crude topped $100/barrel on Iran tensions, pressuring oil marketing margins.

IndiGo fell around 1.91% today to ₹4,268 after Citi's target price cut, with aviation stocks down amid soaring crude prices.

Sunita Tools hit 5% upper circuit at ₹1,075.20, an all-time high, with 63,000 shares traded and pending buy orders amid weak market conditions.

Aarti Industries rose over 6% to ₹456.75 after securing ₹150 million multi-year supply contract with global agrochemical firm; up 11% in three sessions.

DOMS Industries surged 13.89% to ₹2,389.10 intraday, bucking broader market downtrend in stationery sector.

Power stocks surged up to 8% on a spike in power demand, with JSW Energy, Adani Power, BHEL, Tata Power and Torrent Power all rallying between 5% and 8% in intraday trade.

NTPC and Coal India hit fresh 52-week highs on the BSE, with NTPC rising 2% to ₹388.55 and Coal India surging 5% to ₹468, as energy demand concerns drove buying interest in state-owned power and mining stocks.

Futures & Options
Nifty March 2026 futures closed at 23,718, a 78.85-point premium over the spot Nifty, which dropped 227.70 points to 23,639.15. The small premium indicates traders remain cautious due to ongoing West Asia tensions. India VIX rose 2.16% to 21.52, marking continued high volatility for a third straight session. HDFC Bank, Reliance Industries, and ICICI Bank led F&O trading on the NSE. The March 2026 contracts expire on 30 March 2026.

Bonds
Indian government bond yields rose on Thursday, wiping out gains from the previous two sessions as a sharp spike in oil prices and a slump in US Treasuries triggered a broad selloff in domestic debt markets. The benchmark 6.48% 2035 bond yield climbed 3 basis points to end at 6.6666%, after hitting an intraday high of 6.6940%, reversing from Wednesday's close of 6.6366%. The selloff followed the US 10-year yield nearing 4.25% as oil prices rose, with traders looking to central banks for support amid ongoing geopolitical pressures on fixed income markets.

Forex
The Indian rupee hit a fresh all-time low of 92.3575 per dollar on Thursday as the latest attacks on oil and transport facilities across West Asia drove crude prices higher, likely prompting Reserve Bank of India intervention to limit the currency's decline. The rupee pared some losses as energy prices retreated modestly through the session, closing down 0.16% at 92.19, as the central bank's presence in the market helped prevent a sharper deterioration even as the broader pressure from the ongoing geopolitical conflict continued to weigh heavily on the currency.

Crypto
Crypto markets turned cautious on Thursday as oil briefly surged back above $100 per barrel following attacks on two oil tankers in Iraqi waters. Bitcoin weakened as much as 2%, hovering around $70,000 in early New York trading, as the deepening West Asia conflict dampened appetite for risk assets. Ethereum showed relative resilience, holding above the $2,000 mark to trade near $2,062, with analysts pointing to a consolidation range of $1,900–$2,100 and resistance at $2,165. The crypto fear and greed index, continued to signal extreme fear, suggesting traders remain broadly cautious despite the absence of a major price breakdown.

US Stock Futures
US stock futures retreated on Thursday as oil prices pressed higher amid signs the West Asia war was widening and threatening further disruption to energy supplies. Dow Jones futures fell 0.7%, following a second consecutive mostly negative session on Wall Street, while S&P 500 and Nasdaq 100 futures each declined 0.6%, having pared earlier morning losses of around 1% as markets attempted a partial stabilisation through the session.

US Treasury Notes
Yields on US Treasury rose sharply Thursday, with the 10-year note reaching 4.24%, a five-week high, amid inflation fears from oil prices near $100 per barrel. Investors sought higher returns due to rising energy costs and increased government borrowing tied to the US-Iran conflict. The 30-year bond yield jumped to 4.88%, reflecting concerns over growing budget deficits.

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