Stock indices down 1.3% as oil prices keep investors anxious

The Nifty 50 opened steady at 24,656.40 points, and after trading flat for the better part of the day, slumped to the day’s low of 24,415.75 points before closing at 24,450.5 points. Sensex 30 too fell 1.4% to 78,918.90 points.

Of the 21 sectoral indices on Nifty, just three of them closed higher than the previous day. Most of the indices were negative shedding nearly 2% of their previous day’s close. 

About 55% of the stocks that were trading actively on NSE and BSE declined marking a broadbased negative investor sentiment. This is however slightly better than the ratio on Monday, when the stock market meltdown after Iran began.   

The week had just four trading sessions due to a market holiday marking Holi on Tuesday (March 3, 2026). Of the four days, market declined in three days with a slight relief on Thursday (March 5, 2026). 

The primary reason behind this remains elevated oil prices. Brent Oil Price futures closed $90.64 on Friday (March 6, 2026). The anxieties of oil supply shocks are more pronounced due to the Strait of Hormuz blockade, experts said. The cost of shifting to an alternative source of oil transportation, freight and the insurance costs will keep oil prices elevated, experts have been warning. 

“Investors are moving towards traditional safe-haven assets and adopting a cautious stance, awaiting greater clarity. We expect that reassurance over control of the Strait of Hormuz will help stabilise market sentiment. We advise avoiding a panic sell-off and adopting a disciplined, long-term perspective and exercising patience over the next several weeks, as current price levels may offer a strategic entry point for medium- to long-term investors,“ Vinod Nair, Head of Research, Geojit Investments Limited. said.