Stock markets slump in early trade as West Asia war enters fifth week

Unabated foreign fund outflows also added to the weakness in domestic equities.

The 30-share BSE Sensex tumbled 1,191.24 points to 72,391.98 in early trade. The 50-share NSE Nifty slumped 349.45 points to 22,470.15.

From the 30-Sensex firms, Axis Bank, Kotak Mahindra Bank, Bajaj Finserv, Bajaj Finance, Bharti Airtel and ICICI Bank were among the biggest laggards.

Bharat Electronics, Reliance Industries, Power Grid, Tata Consultancy Services and Hindustan Unilever were the gainers.

Brent crude, the global oil benchmark, jumped 2.32% lower to $115.3 per barrel.

In Asian markets, South Korea’s benchmark Kospi and Japan’s Nikkei 225 index and Hong Kong’s Hang Seng index were quoting sharply lower, while Shanghai’s SSE Composite index traded in positive territory.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹4,367.30 crore on Friday (March 27, 2026), according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth ₹3,566.15 crore.

Foreign investors have pulled out ₹1.14 lakh crore (about $12.3 billion) from domestic equities in March, making it the worst monthly outflow, weighed down by escalating tensions in West Asia, a weakening rupee and concerns over the impact of elevated crude oil prices on India’s growth.

“The pressure is largely external, as escalating geopolitical tensions and surging crude oil prices continue to dominate investor sentiment. Asian markets have opened with significant cuts, with South Korea’s Kospi and Japan’s Nikkei declining sharply.”

“The broad-based weakness comes as the Middle East conflict enters its fifth week, with fresh escalation after Yemen’s Houthis reportedly launched missile strikes on Israel. This marks a widening of the conflict footprint and has heightened fears of prolonged instability in the region,” K. Hariprasad, Research Analyst and Founder, Livelong Wealth, said.

On Friday (March 27, 2026), the Sensex tanked 1,690.23 points or 2.25 per cent to settle at 73,583.22. The Nifty dropped 486.85 points or 2.09% to end at 22,819.60.