The key equity indices ended with steep losses on Friday, snapping a two-day gaining streak, tracking weak global cues amid persistent uncertainty over Middle East tensions and renewed concerns about inflationary pressures. The rupee weakened to a record low against the US dollar. The Nifty closed below the 22,850 mark.
Meanwhile, the Indian government has slashed additional excise duty on petrol and diesel against the backdrop of ongoing tensions in West Asia. The additional excise duty on petrol has been reduced to Rs 3 per litre from Rs 13 per litre earlier, while the duty on diesel has been cut to nil from Rs 10 per litre. The move aims to provide relief to oil marketing companies as crude oil prices remain elevated.
The barometer index, the S&P BSE Sensex tumbled 1,690.23 points or 2.25% to 73,583.22. The Nifty 50 index fell 488.85 points or 2.09% to 22,819.60. In the past two consecutive trading sessions, the Sensex and Nifty climbed 3.54% and 3.53%, respectively.
In the broader market, the BSE 150 MidCap Index slipped 2.18% and the BSE 250 SmallCap Index declined 1.82%. The market breadth was weak.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term rallied 8.77% to 26.80.
Among the sectoral indices, the Nifty IT index (down 0.44%), the Nifty Pharma index (down 0.50%) and the Nifty Healthcare index (down 0.60%) outperformed the Nifty 50 index.
Meanwhile, the Nifty PSU Bank index (down 3.86%), the Nifty Realty index (down 3.17%) and the Nifty Auto index (down 2.82%) underperformed the Nifty 50 index.
US-Iran Warfare
As the Middle East conflict continues without clarity, uncertainty remains a key concern for investors.
According to media reports, U.S. President Donald Trump has decided to extend the pause on potential strikes targeting Iran’s energy infrastructure into April, stating that the decision was taken at Tehran’s “request.” However, subsequent media reports suggested that Iran had not formally sought any such pause.
Meanwhile, Iran is said to have rejected a 15-point proposal put forward by the United States and instead presented its own set of conditions. These reportedly include assurances that the U.S. and Israel would not resume military actions against Iran, along with recognition of Iran’s control over the Strait of Hormuz.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 0.87% to 6.934, compared with the previous session's close of 6.874.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 94.7300 compared with its close of 93.9600 during the previous trading session.
MCX Gold futures for the April 2, 2026 settlement jumped 1.64% to Rs 141,813.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.07% to 100.01.
The United States 10-year bond yield rose 0.97% to 4.461.
In the commodities market, Brent crude for May 2026 settlement jumped $2.15 or 1.99% to $110.16 a barrel.
Global Markets:
European shares declined on Friday as investors struggled to decipher mixed messages on the status of Middle East peace talks.
Asian markets ended mixed despite President Donald Trump’s postponing of strikes on Iran brought some relief, although concerns over a prolonged conflict kept some regional markets under pressure.
President Donald Trump extended his Friday deadline to attack Iran’s energy infrastructure by 10 days to April 6 to allow more time for negotiations.
The extension was at the request of the government of the Islamic Republic, Trump said, and it was granted in exchange for 10 oil tankers that passed through the Strait of Hormuz as a “present” from Tehran. Washington has in recent days signaled it wants a negotiated end to the conflict and insisted that peace talks with the Islamic Republic have been ongoing. Tehran has denied that it is in direct talks with the U.S.
Meanwhile, China’s industrial profits jumped 15.2% from a year earlier in the January-February period, the National Bureau of Statistics data showed Friday, extending a sharp rebound from a 5.3% jump in December.
Overnight on Wall Street, the S&P 500 fell on Thursday, weighed by higher oil prices, as traders followed the latest developments out of the Middle East.
The broad market index declined 1.74% to end at 6,477.16, while the Nasdaq Composite shed 2.38% and closed at 21,408.08. The tech-heavy index closed in correction territory, down more than 10% from its high. The Dow Jones Industrial Average dipped 469.38 points, or 1.01%, and settled at 45,960.11.