The domestic equity benchmarks traded with substantial losses in the mid-afternoon trade due to negative global signals. Rising geopolitical tensions in the Middle East raised concerns about potential disruptions to energy supplies and their impact on global economic growth.
Investor sentiment also remained cautious amid a weakening rupee and a spike in market volatility, with the volatility index rising over 16%. Market participants largely adopted a risk-off approach. The Nifty slipped below the 22,600 mark.
PSU Bank shares witnessed selling pressure after advancing in the past trading session.
At 14:25 IST, the barometer index, the S&P BSE Sensex tanked 1,517.80 points or 2.04% to 73,011.16. The Nifty 50 index plunged 513.85 points or 2.22% to 22,596.35.
The broader market underperformed the frontline indices. The BSE 150 MidCap Index dropped 3.35% and the BSE 250 SmallCap Index slipped 3.66%.
The market breadth was weak. On the BSE, 585 shares rose and 3,780 shares fell. A total of 147 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 16.39% to 26.55.
US-Iran Warfare
The ongoing conflict in the Middle East continues to intensify, keeping global investors cautious as the war enters its fourth week, raising concerns about energy security and global economic stability.
According to the chief of the International Energy Agency (IEA), nearly 40 energy assets ‘severely damaged' in conflict; warns of ‘worst’ crisis.
Meanwhile, Donald Trump warned the US will “obliterate” Iran’s power plants if it doesn’t fully open the Strait of Hormuz within 48 hours, In response, Iran stated that any such military action would be met with retaliatory strikes targeting U.S. and Israeli energy and infrastructure facilities in the region.
Buzzing Index:
The Nifty PSU Bank index slipped 2.95% to 8,331.20. The index jumped 2.07% in the past trading session.
UCO Bank (down 4.71%), Punjab & Sind Bank (down 4.66%), Bank of Maharashtra (down 4.06%), Indian Overseas Bank (down 3.91%), Union Bank of India (down 3.83%), Bank of Baroda (down 3.82%), Punjab National Bank (down 3.71%), Central Bank of India (down 3.54%), Indian Bank (down 3.49%) and Bank of India (down 3.42%) declined.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 1.65% to 6.848 compared with the previous session close of 6.737.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 93.9350 compared with its close of 93.5350 during the previous trading session, pressured by rising geopolitical tensions in the Middle East and concerns over energy supply disruptions.
MCX Gold futures for 2 April 2026 settlement tumbled 7.03% to Rs 134,339.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.11% to 99.75.
The United States 10-year bond yield rose 0.20% to 4.421.
In the commodities market, Brent crude for May 2026 settlement jumped $1 or 1.58% to $113.96 a barrel.