The domestic equity benchmarks traded with major losses in the afternoon trade, as escalating clashes between the US, Israel and Iran lifted crude oil prices to their highest in 19 months and intensified investor risk aversion. Brent crude climbed strongly on fears of supply disruptions through the Strait of Hormuz, adding to inflation concerns and global market sell-offs. Nearly all major Nifty sectoral indices traded lower in the early hours.
The Nifty traded below the 24,400 level. Metal shares declined after advancing in the past trading session.
At 12:30 ST, the barometer index, the S&P BSE Sensex, slumped 1,492.17 points or 1.86% to 78,746.68. The Nifty 50 index tanked 501.20 points or 2% to 24,364.65.
The broader market underperformed the frontline indices. The BSE 150 MidCap Index declined 2.79% and the BSE 250 SmallCap Index fell 2.82%.
The market breadth was weak. On the BSE, 821 shares rose and 3,317 shares fell. A total of 180 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, zoomed 23.04% to 21.70.
Brent crude, the global oil benchmark, climbed 2.51% to $83.44 per barrel.
Derivatives:
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, soared 23.07% to 21.08. The Nifty 30 March 2026 futures were trading at 24,500.60, at a premium of … points as compared with the spot at ….
The Nifty option chain for the 30 March 2026 expiry showed a maximum call OI of 64 lakh contracts at the 26,000 strike price. Maximum put OI of 51.5 lakh contracts was seen at 25,000 strike price.
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 Metal index slumped 4.69% to 11,694.95. The index rose 0.24% in the past trading session.
Tata Steel (down 6.94%), Steel Authority of India (down 6.75%), Hindustan Copper (down 5.89%), NMDC (down 5.38%), Jindal Steel (down 4.99%), JSW Steel (down 4.91%), Hindustan Zinc (down 4.65%), Lloyds Metals & Energy (down 4.58%), APL Apollo Tubes (down 4.09%) and Vedanta (down 3.60%) declined.
Stocks in Spotlight:
Glenmark Pharmaceuticals slipped 4.06%. The company announced that its subsidiary, Glenmark Specialty SA, has received final approval from the U.S. Food and Drug Administration (USFDA) for Fluticasone Propionate Inhalation Aerosol USP, 44 mcg per actuation.
Capillary Technologies India rose 0.78%. The company announced a five-year strategic agreement worth over $20 million with one of the largest retailers in the United States and a Fortune 50 company.