Benchmark indices down 2% as oil prices refuse to budge

Nifty 50 and Sensex 30 dipped about 2% to close at 23,151.10 and 74,563.92 points.

Nifty 50 opened 23,462.50 points, and hit 23,492.40 before tumbling to the day’s 23,112.00 points before settling down at the day’s close.

The dip was broad based with all the sectoral indices falling as much as 4.8%.  Nifty Metal and Nifty PSU fell the most with 4.8% and 3.7%.

The dip was also triggered by a perfect storm for the markets with crude oil prices increasing, rupee hitting a fresh low of ₹92.3 a dollar and Foreign Institutional Investor (FII) sold stocks worth ₹52,704 crore worth of equities in a day. As of 13, March , this is the most sold since January 2025, when the full month sell off was ₹78,027 crore.

“Market volatility is expected to persist in the near term as geopolitical tensions in West Asia continue to disrupt the energy sector and push crude oil prices higher, while uncertainty around shipping routes through the Strait of Hormuz keeps risk sentiment fragile,” said Siddhartha Khemka,  Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd. Further, he said that  market direction is likely to remain sensitive to developments in the West Asia conflict, movements in crude oil prices and the trend in foreign fund flows. “Sustained foreign outflows and elevated oil prices could keep sentiment cautious, while any signs of easing geopolitical tensions may provide relief to markets,” he said.