Stock markets plunge as West Asia conflict, crude oil prices continue to dent sentiment

 Equity benchmark indices Sensex and Nifty plummeted on Monday (March 23, 2026), in tandem with an extremely weak trend in global markets as the war in the Middle East showed no signs of a slowdown.

Rising crude oil prices due to the war, which has entered its fourth week, relentless foreign fund outflows and weakness in the rupee have also made investors risk-averse.

The 30-share BSE Sensex dived 1,836.57 points, or 2.46%, to settle at 72,696.39. During the day, it plunged 1,974.52 points, or 2.64%, to 72,558.44.

The 50-share NSE Nifty tanked 601.85 points, or 2.60%, to end at 22,512.65.

From the 30-Sensex firms, Titan tumbled the most by 6.24%. Trent, UltraTech Cement, Bharat Electronics, InterGlobe Aviation, Tata Steel, and HDFC Bank were also among the major laggards.

HCL Tech, Power Grid, Infosys, and Tech Mahindra were the winners.

Brent crude, the global oil benchmark, jumped 0.97% to $113.3 per barrel.

In Asian markets, South Korea’s benchmark Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended sharply lower. The Kospi dived the most by 6.49%.

Markets in Europe were trading with deep cuts. The U.S. market ended significantly lower on Friday (March 20, 2026).

“Domestic markets witnessed a sharp decline, mirroring weakness across Asian markets amid escalating tensions in the Middle East and concerns over potential disruptions to global energy supplies. Investor sentiment turned cautious following Trump’s 48-hour ultimatum to Iran on the Strait of Hormuz,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.

Rising global bond yields signalled heightened inflation and fiscal concerns, while the rupee falling to a record low further pressured markets and triggered FII outflows, he added.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹5,518.39 crore on Friday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth ₹5,706.23 crore. Foreign investors have pulled out ₹88,180 crore (about $9.6 billion) from Indian equities so far this month.

On Friday (March 20, 2026), the Sensex climbed 325.72 points, or 0.44%, to settle at 74,532.96. The Nifty edged higher by 112.35 points, or 0.49%, to end at 23,114.50.