The domestic equity benchmarks traded with major cuts in early afternoon trade, tracking weak global cues amid persistent uncertainty over the de-escalation of Middle East tensions and renewed concerns about inflationary pressures. The rupee also weakened to a fresh record low of 94 against US dollar. Investor sentiment remained cautious due to the lack of clarity on the reopening of the Strait of Hormuz. The Nifty traded below the 23,000 level.
Meanwhile, the Indian government has slashed additional excise duty on both petrol and diesel on the backdrop of the ongoing US-Iran war in West Asia. The additional excise duty on petrol has been lowered to Rs 3 per litre from Rs 13 per litre earlier. Meanwhile, the excise duty on diesel was cut to nil from Rs 10 per liter earlier. The move to cut petrol and diesel excise duty is aimed at providing relief to the oil marketing companies as oil prices continue to trade above $100 per barrel amid the war in the Middle East. Auto shares declined after advancing in the past two trading sessions.
At 12:30 ST, the barometer index, the S&P BSE Sensex tumbled 1,212.01 points or 1.61% to 74,061.44. The Nifty 50 index declined 354.95 points or 1.52% to 22,951.50.
The broader market underperformed the frontline indices. The BSE 150 MidCap Index slipped 1.79% and the BSE 250 SmallCap Index declined 1.87%.
The market breadth was weak. On the BSE, 857 shares rose and 3,311 shares fell. A total of 150 shares were unchanged.
The rupee fell to a record low of 94.5900 against the U.S. dollar, compared with its previous close of 93.9600 weighed down by the ongoing conflict in West Asia.
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.
Derivatives:
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 8.15% to 26.65. The Nifty 30 March 2026 futures were trading at 22,930.90, at a discount of 20.6 points as compared with the spot at 22,951.50.
The Nifty option chain for the 30 March 2026 expiry showed a maximum call OI of 110.9 lakh contracts at the 23,000 strike price. The maximum put OI of 106.9 lakh contracts was seen at 22,000 strike price.
Buzzing Index:
The Nifty Auto index fell 2.98% to 24,312.50. The index rose 4.65% in the two consecutive trading sessions.
Tata Motors Passenger Vehicles (down 4.99%), Ashok Leyland (down 4.35%), Sona BLW Precision Forgings (down 4.18%), Uno Minda (down 3.8%), Tube Investments of India (down 3.43%), Eicher Motors (down 3.1%), Mahindra & Mahindra (down 2.75%), Hero MotoCorp (down 2.74%), Samvardhana Motherson International (down 2.63%) and Maruti Suzuki India (down 2.45%) declined.
Stocks in Spotlight:
Royal Orchid Hotels (ROHL) fell 1.44%. The company announced the signing of a new upscale hotel project in Mundra, further strengthening its presence in key industrial and port cities across the country.
Larsen & Toubro declined 1.78%. The company said its buildings & factories (B&F) vertical has secured multiple orders across several states in India, with the total value classified as ‘significant’ (Rs 1,000 crore – Rs 2,500 crore).