MUMBAI, March 13 — Indian equity markets witnessed a sharp downturn on Friday as a broad selloff across sectors triggered a major Sensex Crash, dragging benchmark indices lower amid rising geopolitical tensions and global market uncertainty.
The benchmark BSE Sensex plunged 1,470.50 points, or 1.93 percent, to close at 74,563.92, while the Nifty 50 fell 488.05 points, or 2.06 percent, ending the session at 23,151.10.
The decline came as investors turned cautious amid rising crude oil prices and escalating geopolitical risks in the Middle East, which pushed markets into a risk-off mode.
Market data showed widespread selling across sectors, with auto, metal, and public sector banking stocks emerging as the worst performers during the session.
Sensex Crash Wipes Out ₹10 Lakh Crore in Market Capitalisation
The Sensex Crash triggered a sharp erosion in investor wealth as the total market capitalisation of companies listed on the Bombay Stock Exchange dropped significantly.
According to market data, the combined market value of BSE-listed companies declined by nearly ₹10 lakh crore, falling to around ₹430.18 lakh crore from ₹440.06 lakh crore in the previous session.
The decline reflected broad selling pressure across large-cap, mid-cap and small-cap stocks.
Broader indices also underperformed the benchmark indices. The Nifty Midcap and Nifty Smallcap indices each declined around 2.5 percent, highlighting widespread weakness in the market.
Nifty Slips Below 23,200 Amid Heavy Selling Pressure
The Sensex Crash was accompanied by sustained selling in the Nifty index throughout the trading session.
The market opened weak with the Nifty trading below the 23,500 level, and continued profit booking dragged the index to an intraday low of 23,112 before it eventually closed near the day’s low.
Technical indicators suggest that the selling pressure remained strong throughout the session as traders used intraday recoveries as opportunities to offload positions.
Market analysts noted that the sharp fall erased most of the gains accumulated earlier in the financial year.
Auto, Metal and PSU Bank Stocks Among Worst Hit
Sector-wise performance showed deep losses across most segments of the market.
The automobile sector recorded one of the sharpest declines, reflecting concerns that rising crude oil prices and geopolitical tensions could disrupt production and exports.
Metal stocks also faced heavy selling as global commodity prices remained volatile amid geopolitical developments.
Public sector banking stocks were another major drag on the market, with the PSU Bank index falling between 3 percent and 4 percent during the session.
The broad-based decline highlighted the risk-off sentiment among investors.
Major Losers Include L&T, Tata Steel and UltraTech Cement
Several large-cap stocks witnessed sharp declines during the trading session.
Among the biggest losers on the Nifty were Larsen & Toubro, Tata Steel, Hindalco Industries, UltraTech Cement and JSW Steel.
These stocks faced heavy selling pressure amid concerns over global economic uncertainty and rising energy prices.
However, some stocks managed to limit losses or record gains during the session. Shares of Tata Consumer Products, Hindustan Unilever and Bharti Airtel were among the relatively better performers.
Over 500 Stocks Hit 52-Week Lows
Market breadth remained extremely weak, indicating widespread selling pressure across the broader market.
More than 500 stocks touched their 52-week lows, reflecting the severity of the market decline.
Stocks such as Sapphire Foods, Birla Corporation, Gravita India, Piramal Pharma, Exide Industries, KPIT Technologies, Berger Paints and HDFC Bank were among those hitting fresh yearly lows.
The sharp increase in the number of stocks at new lows suggests rising risk aversion among investors.
Rupee Weakens Against the US Dollar
The decline in equities also coincided with weakness in the Indian currency.
The Indian rupee fell to a fresh record low of 92.47 against the US dollar, before settling at 92.45, down 26 paise from the previous close.
Currency weakness added to concerns about capital outflows and rising import costs, especially for crude oil.
Analysts Warn of Potential Earnings Impact
Market analysts say the ongoing geopolitical tensions could have broader economic implications if energy prices remain elevated.
According to research estimates, rising crude oil prices could lead to a terms-of-trade shock for India, increasing inflationary pressures and affecting corporate earnings.
Some analysts have warned that if crude oil prices remain above $100 per barrel, earnings growth projections for Indian companies in FY27 could face downward revisions.
Technical Outlook for Nifty
Technical analysts say the market remains under strong bearish pressure.
Key support for the Nifty 50 is currently seen in the 23,000–22,950 zone.
A decisive breakdown below these levels could extend the decline towards 22,750, followed by 22,500 in the near term.
On the upside, the 23,450–23,500 range is expected to act as immediate resistance.
Momentum indicators also suggest continued weakness, with the Relative Strength Index (RSI) falling below 25, indicating strong bearish momentum.
Meanwhile, a rising Average Directional Index (ADX) suggests that the downward trend in the market is strengthening.
Market Trend Remains Weak
Analysts say the broader market structure remains weak despite the index approaching key support levels.
The formation of a long bearish candle on daily charts indicates strong selling pressure across sectors.
Unless benchmark indices reclaim higher resistance levels, the market is expected to remain under pressure in the near term.
(Related: https://angelrupeez.com/sensex-worst-weekly-drop-middle-east-conflict/ )