The Nifty 50 slipped below the 23,200 level, with all sectoral indices trading in the red. Realty, auto, and financial services shares faced the steepest losses.

At 13:30 IST, the barometer index, the S&P BSE Sensex tumbled 1,886.89 points or 2.46% to 74,833.62. The Nifty 50 index plunged 586.25 points or 2.47% to 23,190.65.

The broader market underperformed the frontline indices. The BSE 150 MidCap Index declined 2.50% and the BSE 250 SmallCap Index dropped 1.99%.

The market breadth was weak. On the BSE, 1,073 shares rose and 3,004 shares fell. A total of 170 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, zoomed 16.95% to 21.90.

West Asia Conflict:

The Middle East war continues to escalate, keeping investors on edge. US President Donald Trump on Wednesday warned that Iran’s key South Pars gas field could be destroyed if there are any further attacks targeting Qatar’s main gas facility. The warning came as Qatar said Iranian missile strikes had caused extensive damage on Ras Laffan Industrial City, the world’s largest LNG export facility in the world.

Israeli defence minister Israel Katz said “significant surprises” are ahead after Iran’s intelligence minister Esmail Khatib was killed in an overnight strike. Iran condemned the attack on its South Pars gas field, with President Masoud Pezeshkian warning of “uncontrollable consequences” that could “engulf the entire world.”

Gainers & Losers:

Oil & Natural Gas Corporation (up 1.02%) were the major Nifty50 gainer.

Shriram Finance (down 6.22%), ETERNAL (down 5.17%), Bajaj Finance (down 4.62%), Tata Motors Passenger Vehicles (down 4.23%) and Larsen & Toubro (down 4.25%) were the major Nifty50 losers.

Stocks in Spotlight:

G R Infraprojects fell 1.05%. The company announced that it has emerged as the L1 bidder for an NHAI construction project worth Rs 2,441 crore.

HDFC Bank declined 3.64%. The bank informed that its part-time chairman and independent director, Atanu Chakraborty, has resigned with immediate effect from 18 March 2026. In his resignation letter, he stated that certain happenings and practices within the bank over the last two years were not in congruence with his personal values and ethics. Reserve Bank of India has approved the appointment of Keki Mistry as interim part-time chairman for a period of three months, effective 19 March 2026. Chakraborty joined the board in May 2021, and his tenure oversaw the merger with HDFC.

DCX Systems fell 2.97%. The company announced that it has secured an order worth Rs 12.8 crore for the supply of cable and wire harness assemblies.

Zydus Lifesciences declined 1.93%. The company announced the launch of Aerolife Mini, a next-generation pressurized metered-dose inhaler (pMDI) enhancer, marking a key step in the company’s strategy to drive drug-device-led innovation in respiratory care.

Hindustan Construction Company fell 1.98%. The company has won a major infrastructure contract valued at approximately Rs 1,662.27 crore from the Brihanmumbai Municipal Corporation for the construction of the Goregaon-Mulund Link Road (GMLR) Phase IV.

Global Markets:

European markets opened lower on Thursday as the Iran war escalates following attacks on Iranian and Qatari energy infrastructure.

Asian markets traded in red, tracking losses on Wall Street that saw the Dow Jones Industrial Average touch a new closing low for the year.

The Bank of Japan kept the interest rates steady at 0.75% but noted that inflation risks now are tilted to the upside due to the Iran war.

Malaysia’s annual inflation eased to 1.4% in February 2026 from 1.6% in January, coming in below market expectations of 1.6% and marking the lowest level since November. The moderation was driven by slower price increases across key segments, including food, health and education. Core inflation also softened to 2% from 2.3%, the lowest in six months. On a monthly basis, consumer prices rose 0.2% in February, compared with a 0.1% rise in the previous month.

In the commodities market, Brent crude for May 2026 settlement rallied $3.85, or 3.59% to $111.23 a barrel.

Overnight in the U.S., the 30-stock Dow Jones Industrial lost 1.63%, ending at 46,225.15, reaching a new low this year. The index also closed below its 200-day moving average. The S&P 500 fell 1.36%, while the Nasdaq Composite dropped 1.46%.

The Federal Reserve held its key policy rate steady at 3.5% to 3.75%, with Chair Jerome Powell watering down rate-cut expectations, saying that inflation was not coming down as much as ‘hoped.’

The U.S. central bank’s “dot plot” projects a cut in 2026 and another in 2027, even though the timing is unclear.

The producer price index—which tracks the change in wholesale prices—rose 0.7% in February, well above the 0.3% that economists polled by Dow Jones had estimated.