Sensex, Nifty fall: Why markets are down today; what investors should do
Stock market: The BSE Sensex was trading at 72,583.69, down 999.53 points or 1.36 per cent. Nifty stood at 22,507.85, down 311.75 points or 1.37 per cent.
- Mar 30, 2026,
- Updated Mar 30, 2026 9:46 AM IST
Benchmark stock indices Sensex and Nifty fell over 1 per cent each in Monday's trade amid weakness in banking names, a sharp selloff in Asian peers, boiling crude oil prices and persistent concerns over the West Asia war.
In a post today, the US President Donald Trump called Monday a "Big day in Iran", adding that many long sought after Iran targets have been taken out and destroyed, dashing hopes of an end to the Iran conflict.
The BSE Sensex was trading at 72,583.69, down 999.53 points or 1.36 per cent. Nifty stood at 22,507.85, down 311.75 points or 1.37 per cent. Asian peers tumbled with Japan's Nikkei and Korea's Kospi falling up to 3.3 per cent. Hong Kong shares were down 1 per cent. US stock indices had tanked 1.7-2.3 per cent on Friday.
Investors were concerned over rising oil prices. Brent futures for June delivery were trading 2.5 per cent higher at $107.96 a barrel level.
"Crude oil prices continue to be a major concern, with Brent trading above $108 per barrel, driven by supply disruptions and geopolitical uncertainty. Elevated oil prices are increasing inflationary pressures, impacting fiscal health, and weighing on corporate margins. At the same time, Foreign Institutional Investors (FIIs) remain aggressive sellers, with outflows crossing approximately Rs 1.14 lakh crore in March 2026, reflecting sustained global risk aversion and capital reallocation away from emerging markets," said Ponmudi R, CEO of Enrich Money.
With the conflict in West Asia entering the fifth week, there are signs of escalation of the war with the Houthi’s joining the conflict and the US sending additional troops to reinforce the attack, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
The Goldilocks macro scenario which India had before the war has almost disappeared thanks to the war, he said.
"Instead of high GDP growth, low inflation, moderate fiscal and current account deficits and expectations of higher corporate earnings growth in FY27, now we face prospects of lower GDP growth, higher inflation, higher fiscal and current account deficits and lower earnings growth for FY27. The market has largely discounted these negatives as reflected in the decline in the Nifty trailing PE ratio to about 19.9 times. This is fair but not yet cheap valuations," he said.
Hitesh Tailor, Research Analyst at Choice Broking said investors are advised to maintain a disciplined and selective approach. He said it would be prudent to focus on accumulating fundamentally strong stocks on meaningful declines rather than chasing any short-term bounce.
Banking stocks fell on fears banks would be forced to unwind down their long dollar positions beyond $100 million in the domestic forex market following the latest Reserve Bank of India (RBI) directive.
Union Bank declined 3.16 per cent to Rs 170.20 Axis Bank dropped 3 per cent to Rs 1,168.70. Canara Bank, Kotak Mahindra Bank, Bank of Baroda, State Bank of India and Punjab National Bank fell over 2 per cent each. IndusInd Bank and Federal Bank also slipped 2 per cent each. ICICI Bank and HDFC Bank were down 1.8 per cent and 1.4 per cent, respectively.
Benchmark stock indices Sensex and Nifty fell over 1 per cent each in Monday's trade amid weakness in banking names, a sharp selloff in Asian peers, boiling crude oil prices and persistent concerns over the West Asia war.
In a post today, the US President Donald Trump called Monday a "Big day in Iran", adding that many long sought after Iran targets have been taken out and destroyed, dashing hopes of an end to the Iran conflict.
The BSE Sensex was trading at 72,583.69, down 999.53 points or 1.36 per cent. Nifty stood at 22,507.85, down 311.75 points or 1.37 per cent. Asian peers tumbled with Japan's Nikkei and Korea's Kospi falling up to 3.3 per cent. Hong Kong shares were down 1 per cent. US stock indices had tanked 1.7-2.3 per cent on Friday.
Investors were concerned over rising oil prices. Brent futures for June delivery were trading 2.5 per cent higher at $107.96 a barrel level.
"Crude oil prices continue to be a major concern, with Brent trading above $108 per barrel, driven by supply disruptions and geopolitical uncertainty. Elevated oil prices are increasing inflationary pressures, impacting fiscal health, and weighing on corporate margins. At the same time, Foreign Institutional Investors (FIIs) remain aggressive sellers, with outflows crossing approximately Rs 1.14 lakh crore in March 2026, reflecting sustained global risk aversion and capital reallocation away from emerging markets," said Ponmudi R, CEO of Enrich Money.
With the conflict in West Asia entering the fifth week, there are signs of escalation of the war with the Houthi’s joining the conflict and the US sending additional troops to reinforce the attack, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
The Goldilocks macro scenario which India had before the war has almost disappeared thanks to the war, he said.
"Instead of high GDP growth, low inflation, moderate fiscal and current account deficits and expectations of higher corporate earnings growth in FY27, now we face prospects of lower GDP growth, higher inflation, higher fiscal and current account deficits and lower earnings growth for FY27. The market has largely discounted these negatives as reflected in the decline in the Nifty trailing PE ratio to about 19.9 times. This is fair but not yet cheap valuations," he said.
Hitesh Tailor, Research Analyst at Choice Broking said investors are advised to maintain a disciplined and selective approach. He said it would be prudent to focus on accumulating fundamentally strong stocks on meaningful declines rather than chasing any short-term bounce.
Banking stocks fell on fears banks would be forced to unwind down their long dollar positions beyond $100 million in the domestic forex market following the latest Reserve Bank of India (RBI) directive.
Union Bank declined 3.16 per cent to Rs 170.20 Axis Bank dropped 3 per cent to Rs 1,168.70. Canara Bank, Kotak Mahindra Bank, Bank of Baroda, State Bank of India and Punjab National Bank fell over 2 per cent each. IndusInd Bank and Federal Bank also slipped 2 per cent each. ICICI Bank and HDFC Bank were down 1.8 per cent and 1.4 per cent, respectively.