Midweek gains followed reports of potential U.S.-Iran negotiations and a temporary pause on strikes, boosting risk appetite and pushing the Nifty above 23,300.

However, Friday saw steep declines on weak global cues, ongoing geopolitical uncertainty, and renewed inflation concerns, with the Nifty closing below 22,850. The government’s excise duty cuts on petrol (Rs 3/litre from Rs 13) and diesel (nil from Rs 10) provided partial relief, while auto shares retraced earlier gains amid cautious investor sentiment.

In the week ended on Friday, 27 March 2025, the S&P BSE Sensex tanked 949.74 points or 1.27% to settle at 73,583.22. The Nifty 50 index fell 294.9 points or 1.27% to settle at 22,819.60. The BSE 150 Mid-Cap index fell 2.18% to close at 14,648.91. The BSE 250 Small-Cap index declined 1.82% to close at 5,795.67.

Weekly Index Movement:

The domestic equity benchmarks ended sharply lower on Monday, The S&P BSE Sensex tanked 1,836.57 points or 2.46% to 72,696.39. The Nifty 50 index plunged 601.85 points or 2.60% to 22,512.65.

The key equity indices staged a sharp rebound on Tuesday. The S&P BSE Sensex zoomed 1,372.06 points or 1.89% to 74,068.45. The Nifty 50 index soared 399.75 points or 1.78% to 22,912.40.

The key equity benchmarks ended with strong gains on Wednesday. The S&P BSE Sensex zoomed 1,205 points or 1.63% to 75,273.45. The Nifty 50 index soared 394.05 points or 1.72% to 23,306.45.

The stock market remained closed on Thursday, 26 March 2026, on account of Shri Ram Navami.

The key equity indices ended with steep losses on Friday. The S&P BSE Sensex tumbled 1,690.23 points or 2.25% to 73,583.22. The Nifty 50 index fell 488.85 points or 2.09% to 22,819.60.

US-Iran Warfare:

On the geopolitical front, sentiment remained fragile despite a temporary breather. GIFT Nifty rose over 3% after U.S. President Donald Trump announced a five-day pause on planned strikes targeting Iran’s energy infrastructure, citing “productive” talks and signaling short-term de-escalation. However, the situation remained fluid as the conflict entered its fourth week, with Iran warning that any attack on its southern coast could disrupt key Gulf shipping routes. The International Energy Agency noted nearly 40 energy assets had been severely damaged, heightening fears of a potential energy crisis.

Global investors remained cautious amid limited diplomatic progress. Reports indicated indirect exchanges between Iranian Foreign Minister Abbas Araghchi and U.S. envoy Steve Witkoff, though Tehran denied recent direct contact. Trump stated on Truth Social that he had instructed the Department of War to postpone strikes for five days, subject to continued engagement. Fatih Birol, IEA Executive Director, warned that damages to energy assets across nine Middle Eastern countries could trigger the worst energy crisis since the 1970s oil shocks.

The Trump administration reportedly proposed a 15-point ceasefire plan, while preparing to deploy at least 1,000 additional troops to a region already hosting around 50,000 personnel. Iran rejected the U.S. proposal, presenting its own conditions, including assurances against renewed military action and recognition of control over the Strait of Hormuz. The pause on strikes could extend into April, though conflicting reports suggested Tehran had not formally requested it. Uncertainty continued to weigh on investor sentiment.

Economy:

India’s private sector growth slowed to its weakest pace since October 2022 in March, as softer domestic demand weighed on activity despite a surge in international orders. The HSBC Flash India Composite Output Index fell to 56.5 from 58.9 in February, reflecting slower expansion in both manufacturing and services. Manufacturing output grew at its slowest pace since August 2021, while services expanded at a moderated pace amid travel disruptions. Businesses cited geopolitical tensions, market volatility, and rising inflation as key challenges.

S&P Global raised India’s GDP growth forecast for FY27 to 7.1% from 6.7%, while warning that fresh geopolitical tensions and elevated energy prices could pressure fiscal balances and widen the trade deficit. The ratings agency also revised medium-term growth projections, raising FY28 to 7.2% and FY29 to 7.0%, reflecting steady economic momentum.

Stocks in Spotlight:

DCX Systems added 0.73%. The company secured an order worth Rs 563.45 crore from a domestic customer for the manufacture and supply of maritime patrol radar systems (MPR) for airborne applications.

InterGlobe Aviation declined 1.16%. The foreign brokerage trimmed its target price on the stock while maintaining a ‘Buy’ rating. The brokerage cut its target price to Rs 5,200 from Rs 6,000, citing rising fuel costs and near-term weakness in traffic from the Middle East region. It now expects EBITDAR of around Rs 13,700 crore for FY26, Rs 15,900 crore for FY27 and Rs 24,400 crore for FY28, reflecting a more cautious near-term outlook. The broker noted that ongoing geopolitical tensions have impacted travel demand, particularly in key Middle East routes, which remain an important market for the airline. The company recently introduced a fuel surcharge on domestic and international flights in response to a sharp rise in jet fuel prices.

HDFC Bank fell 3.10%. The decline follows reports that the bank has terminated three senior employees after an internal investigation into alleged mis-selling of AT1 bonds to NRI clients.

Wipro added 0.20%. The company has announced the expansion of its business operations in South Korea, reinforcing the country’s position as a strategic growth market for the company. The expansion includes a larger office footprint in Seoul, the launch of a new innovation lab under the Wipro Innovation Network (WIN), and continued investments in local talent to better serve South Korean clients both domestically and globally.

TBO Tek rallied 3.44%. A domestic brokerage initiated coverage on the stock with a 'Buy' rating and a target price of Rs 1,360. The brokerage said the company offers a structural play in the global B2B outbound travel market. It enables offline travel agents and enterprise buyers to access international airlines, hotels and ancillary services across geographies. It highlighted that the global business-to-agent (B2A) travel distribution ecosystem comprises nearly 2 million agents, including freelancers, home-based consultants, small agencies and large professional firms. TBO Tek’s focus on this fragmented base provides a large total addressable market and significant scope for penetration, wallet share gains and geographic expansion.

Godawari Power & Ispat jumped 3.16%. The company's board approved setting up a 1 million tonne per annum (MTPA) integrated steel plant in Chhattisgarh.

Sammaan Capital surged 7.65%. The Reserve Bank of India approved the proposed investment by Avenir Investment RSC, marking a key step towards a change in control of the company. The approval allows the investor, owned by International Holding Company PJSC, to proceed with an investment of approximately Rs 8,850 crore through a preferential issue. Upon completion, Avenir Investment is expected to hold around 41.23% stake in the company, which could rise to 63.36% following an open offer, subject to full subscription.

Fino Payments Bank tumbled 15.81%. The bank sees strong surge in Q4 FY26 referral loan disbursements. As of 20 March 2026, Q4 FY26 referral loan disbursements have already reached

Rs 540 crore and are expected to close at 90% levels comparable to the first three quarters combined (

Rs 700 crore). Overall, the bank is on track to record close to Rs 1,300 crore in referral loan disbursements for FY26.

Kotak Mahindra Bank shed 0.27%. The bank announced the conclusion of stake sale in Infina Finance by Kotak Mahindra Capital Company (KMCC), a wholly owned subsidiary of the bank, for an aggregate consideration of Rs 1,293.91 crore. Post completion, KMCC’s stake in Infina will reduce to around 19%, resulting in Infina ceasing to be an associate of the bank.

KMCC would sell nearly 9.90% stake (or 2,17,899 shares) to Derive Trading and Resorts and Bright Star Investments for Rs 413.35 crore, approximately 12.10% stake (or 2,66,321 shares) to trusts representing the estate of Rakesh Jhunjhunwala for Rs 505.21 crore and around 8.99% stake (or 1,97,870 shares) to KF Trust, an existing shareholder, for Rs 375.36 crore.

Global Markets:

Euro zone business activity slowed in March, with the S&P Global Eurozone Composite PMI falling to 50.5 from 51.9 in February.

U.K. inflation held steady at 3.0% year-on-year in February, unchanged from January and in line with expectations, official data showed.

Japan’s consumer price index eased to 1.3% in February, its lowest level since March 2022 and below the central bank’s 2% target, down from 1.5% in January, according to government data.

China’s industrial profits rose 15.2% year-on-year in the January–February period, extending a rebound from a 5.3% increase in December, data from the National Bureau of Statistics showed.