Equities Slip into Oversold Territory as Iran War Drives 10% Loss Since Conflict Began

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

India Stocks fall

By Dehuti Jani

March 23, 2026 at 11:48 AM IST

Indian equity benchmarks slumped sharply on Monday, with the Nifty 50 and Sensex slipping into oversold territory as the West Asia conflict kept oil prices elevated and raised serious concerns over global growth. The Nifty50 fell 2.60% or 601.85 points to 22,512.65, while the BSE Sensex lost 2.46% or 1,836.57 points to 72,696.39, taking cumulative losses since the Iran war began on 28 February to 10.6% for both indices.

The combined market capitalisation of BSE-listed companies declined ₹14 trillion to ₹414.76 trillion. India VIX surged 17.17% to close at 26.73, touching an intraday high of 27.17, its highest level since early June 2024 reflecting the extreme anxiety gripping markets. Brent crude rose 2.37% to $108.73 per barrel on the Intercontinental Exchange after US President Trump warned he would obliterate Iran's power plants if the Strait of Hormuz was not reopened within 48 hours, with Iran retaliating by threatening to strike energy infrastructure across the region.

All 16 major sectors closed in the red, with Nifty Consumer Durables tumbling over 5% to lead losses, followed by Nifty Realty and Nifty Metal, while Nifty IT outperformed with the least losses among peers. Broader markets significantly underperformed the benchmarks, with the Nifty MidCap 100 and Nifty SmallCap 100 dropping 3.69% and 4.16% respectively, as risk aversion gripped every segment of the market. Foreign investors have continued to pull out of Indian equities since the conflict began, compounding the pressure from surging oil prices that have stoked inflation fears, darkened the growth outlook and driven the rupee to a fresh record low of 93.98 per dollar, having declined approximately 3% since hostilities commenced.

Top Movers of the Day

Gujarat Alkalies and Chemicals surged 9% to ₹586.35 on the BSE amid heavy volumes, bucking the broader market weakness as the Sensex fell 2.5% through the session.

Hindustan Zinc fell as much as 5.97% to an intraday low of ₹484 on the NSE, mirroring the broad-based selloff.

Adani Enterprises hit a 52-week low of ₹1,827.85, falling 5% on the BSE amid the broad market selloff.

Larsen & Toubro fell nearly 4% to ₹3,305 on the NSE despite the company stating that 95% of its West Asia project sites remain unaffected by the ongoing conflict.

Petronet LNG slipped 8.5% to an intraday low of ₹235.45 on the BSE, with the stock trading around 8% lower at ₹236.95 as LNG supply concerns from the West Asia conflict weighed heavily on the counter.

Real estate stocks fell as much as 7% as escalating West Asia tensions triggered broad-based selling, with Lodha, DLF and Prestige Estates declining up to 6%.

Airline stocks tumbled up to 10% as an Aviation Turbine Fuel price hike loomed amid surging oil prices, with IndiGo and SpiceJet among the worst hit.

DCX Systems jumped over 12% after securing orders worth ₹5.63 billion, with the stock trading around 10% higher at ₹180 per share as the session progressed.

Vedanta traded under pressure, slipping around 4% to ₹644.60, as metal stocks led the broader market decline amid global risk-off sentiment and falling commodity prices.

HCL Technologies gained around 1.75% to ₹1,357 and Tech Mahindra rose marginally higher to ₹1,389, emerged among the few gainers, rising modestly as IT stocks showed relative resilience.

Power Grid Corporation revised its FY26 capitalisation target upward to ₹250 billion from a previously revised ₹220 billion, having already achieved ₹227.49 billion or 91% of the revised target so far.

Futures & Options
Nifty March 2026 futures closed at 22,496.10, a discount of 14.85 points to the spot Nifty, which plunged 601.85 points or 2.60% to settle at 22,512.65 in the cash market. The futures trading at a discount to spot reflected deeply bearish sentiment, with traders unwilling to pay a premium for future exposure amid the rapidly escalating West Asia conflict. India VIX surged 17.17% to close at 26.73, its highest closing level since early June 2024, signalling extreme near-term volatility expectations as President Trump's 48-hour ultimatum to Iran over the Strait of Hormuz kept markets on edge. The March 2026 derivative contracts are set to expire on 30 March 2026.

Bonds
The Indian government bond yields surged on Monday, with the benchmark 6.48% 2035 bond yield climbing 10 basis points to close at 6.8379% from 6.7369% at Friday's close, as surging oil prices and rising US Treasury yields combined to hammer domestic debt markets. The market was already grappling with heavy debt supply and uncertainty over the Reserve Bank of India's continued support, leaving bonds highly vulnerable to the external shock. The US 10-year Treasury yield rose above 4.40% for the first time in nearly eight months, while the policy-sensitive 2-year yield climbed to 3.93%, amplifying the selloff in Indian bonds as the rupee simultaneously plunged to a fresh record low of 93.94 per dollar, reinforcing fears of a prolonged inflationary spiral driven by elevated energy costs.

Forex
The Indian rupee fell to a fresh record low on Monday, hitting 93.98 per dollar during the local spot trading session and breaching the 94 per dollar mark on the interbank order matching system after the session closed, as Indian assets sold off sharply on fears that the West Asia conflict could keep energy supplies disrupted for longer. The currency eclipsed its previous all-time low of 93.7350 hit on Friday and has now declined approximately 3% since the Iran war began on 28 February, battered by an over 50% surge in oil prices and severe disruptions to gas supplies that have dramatically worsened India's import bill, current account outlook and macroeconomic stability.

Crypto
Crypto markets came under serious pressure on Monday as the deepening West Asia conflict and worsening global energy crisis weighed heavily on risk assets. Bitcoin fell to $68,302, triggering over $243 million in long liquidations as bulls struggled to defend key support levels, while Ethereum dropped to around $2,057 and XRP, Solana and other major altcoins declined over 2%, reflecting broad-based market weakness. Adding to the anxiety, Brent crude surged to $112 per barrel with some projections pointing toward $135, stoking inflation concerns as President Trump's 48-hour deadline to reopen the Strait of Hormuz expired, raising the prospect of a further dramatic escalation in the conflict.

US Stock Futures
US stock futures fell on Monday as the West Asia conflict entered its fourth week with tensions escalating over the weekend, adding to pressure on major benchmarks that have now posted four consecutive weeks of losses. Dow Jones Industrial Average futures dropped 327 points or 0.7%, S&P 500 futures shed 0.8% and Nasdaq 100 futures fell 1%, as President Trump threatened to strike Iranian power plants if the Strait of Hormuz — a critical shipping route handling a significant share of global oil and energy exports — is not reopened, raising fears of a further dramatic escalation in the conflict.

US Treasury Notes
Yields on US Treasury surged to multi-month highs on Monday, driven by escalating geopolitical tensions and persistent inflation fears as the West Asia conflict continued to keep energy prices elevated. The benchmark 10-year note yield climbed to approximately 4.43%–4.44%, its highest level since July 2025, as Brent crude trading near $113 per barrel fuelled growing concerns that inflation would remain stubbornly high and delay Federal Reserve rate cuts. The policy-sensitive 2-year note yield hovered near 4.00%, touching its highest level since June 2025, as markets continued to price out near-term easing expectations in response to the energy-driven inflation shock.

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