The key equity benchmarks traded with steep losses in the mid-afternoon trade as the ongoing conflict in the Middle East and a sharp rise in crude oil prices rattled investor sentiment. Heavy selling by foreign institutional investors and other global headwinds also weighed on market sentiment.
The Nifty traded below the 24,600 level. Realty shares extended their losses for the third consecutive trading session.
At 14:25 IST, the barometer index, the S&P BSE Sensex, slumped 1,038 points or 1.26% to 79,226.84. The Nifty 50 index tanked 306.55 points or 1.23% to 24,559.15.
The broader market underperformed the frontline indices. The BSE 150 MidCap Index declined 2.25% and the BSE 250 SmallCap Index fell 2.30%.
The market breadth was weak. On the BSE, 967 shares rose and 3,242 shares fell. A total of 177 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, zoomed 23.65% to 21.18.
Economy:
India’s HSBC Services PMI declined to 58.1 in February from 58.4 in January and was lower than the flash estimate of 58.4. New business expanded at its slowest pace since January 2025, while input cost inflation rose to a two-and-a-half-year high, driven by higher food, energy and labour expenses. International sales increased at the fastest pace since August. Employment rose for the second consecutive month, with hiring accelerating from January. Business confidence strengthened to a one-year high. Meanwhile, the HSBC Composite PMI rose to 58.9 in February from 58.4 in January, marking a three-month high.
US-Israel-Iran war enters Day 5:
Equity markets tumbled on Wednesday as the war between the US-Israel alliance and Iran entered its fifth day on March 4, deepening concerns over regional stability and global energy supplies.
On Day 4, Israel carried out fresh airstrikes targeting Iranian missile launchers and a nuclear research facility. In retaliation, Iran reportedly targeted US embassies in the Gulf region and disrupted key energy supply routes, escalating fears of a broader conflict.
With both sides intensifying military operations and diplomacy taking a back seat, US President Donald Trump said the conflict could last four to five weeks, signaling prolonged uncertainty for global markets.
Buzzing Index:
The Nifty Realty index fell 3.26% to 743. The index has declined 6.93% over the last three consecutive trading sessions.
Lodha Developers (down 5.66%), SignatureGlobal India (down 5.31%), Godrej Properties (down 4.62%), DLF (down 4.33%), Anant Raj (down 4.04%), Brigade Enterprises (down 3.45%), Prestige Estates Projects (down 3.3%), Phoenix Mills (down 3.26%), Oberoi Realty (down 3.18%) and Sobha Ltd (down 2.24%) declined.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 0.60% to 6.718 compared with the previous session close of 6.680.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 92.2875 compared with its close of 91.4925 during the previous trading session.
MCX Gold futures for 2 April 2026 settlement jumped 1.37% to Rs 163,310.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.06% to 99.10.
The United States 10-year bond yield added 0.22% to 4.065.
In the commodities market, Brent crude for May 2026 settlement rose $2.69 or 3.30% to $82.09 a barrel.
Stocks in Spotlight:
Apollo Micro Systems shed 0.27%. The company has secured fresh orders aggregating to Rs 73.33 crore from defence and government entities as well as private sector companies.
Gland Pharma tanked 4.47%. The pharma major announced that it has received tentative approval from the U.S. Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Brimonidine Tartrate Ophthalmic Solution, 0.025% (OTC).