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Key gauges extend losses amid spike in global crude oil prices
Mar-09-2026

Indian equity benchmarks ended sharply lower for the second consecutive session on Monday as soaring crude oil prices and weak global trends due to the worsening situation in West Asia triggered a sharp sell-off in the stock market. Besides, unabated foreign fund outflows and the weakness in the rupee against the US dollar weighed heavily on investors' sentiment.  

Some of the important factors in trade:

Iran conflict could increase challenges for emerging market sovereigns: Fitch Ratings said the Iran conflict could raise additional challenges for some emerging market sovereigns in areas like energy imports, remittances and exchange rates.

Oil price surge from West Asia clashes not to have substantial impact on India’s inflation: Amidist the ongoing geo-political clashes in West Asia leading to surge in crude oil prices and its impact on India’s inflation, Finance Minister Nirmala Sitharaman has said that the impact is not estimated to be substantial at this point as the country’s inflation is near the lower bound. 

Full benefits under RoDTEP export support scheme will be restored from April 1: The Federation of Indian Export Organisations (FIEO) has said that the commerce ministry has assured that full benefits under the export support scheme, the Remission of Duties and Taxes on Exported Products (RoDTEP), will be restored from April 1, 2026. 

Railway stocks in watch: Ministry of Railways has said that the Indian railways’ freight loading stood at 137.72 MT in February 2026, an increase of 3.96% compared with 132.48 MT of goods carried in the corresponding month last year, highlighting the sustained demand for rail-based logistics across sectors.  

Global front: European markets were trading lower as investors braced for a prolonged conflict in the Middle East that could send energy costs even higher, risking inflation and regional economic growth. Asian markets settled lower tracking weak cues from Wall Street on Friday. 

Finally, the BSE Sensex fell 1352.74 points or 1.71% to 77,566.16 and the CNX Nifty was down by 422.40 points or 1.73% to 24,028.05.           

The BSE Sensex touched high and low of 77,711.35 and 76,424.55 respectively. There were 5 stocks advancing against 25 stocks declining on the index.

The top losing sectoral indices on the BSE were Auto down by 3.89%, Bankex down by 3.16%, Oil & Gas down by 3.11%, PSU down by 2.95% and Basic Materials down by 2.77%, while there was no gaining sectoral index on the BSE. 

The top gainers on the Sensex were Reliance Industries up by 1.37%, Sun Pharma up by 0.48%, Infosys up by 0.47%, Tech Mahindra up by 0.26% and HCL Technologies up by 0.13%. On the flip side, Ultratech Cement down by 5.23%, Maruti Suzuki down by 4.68%, Mahindra & Mahindra down by 4.39%, SBI down by 3.92% and Interglobe Aviation down by 3.83% were the top losers.

Meanwhile, in a cautious tone, the Finance Ministry, in its latest report Monthly Economic Review for February, has said that rising prices of petroleum products and fertilizers due to the prolonged crisis in the Middle East may stoke inflationary pressures on India and may have adverse implications for the exchange rate. Besides, subdued capital flows, accentuated by a flight to safety, could put pressure on the currency. It also said that some sectors dependent on LNG and crude, like fertilisers and petrochemicals, could be affected if the crisis is prolonged. It added that this conflict has already driven Brent crude up around 9 per cent to near $80/bbl and LNG prices around 50 per cent. 

Despite the country’s high import dependency on crude oil, it said the country has sufficient foreign exchange reserves, a low CAD (which stands at 0.8 per cent of GDP in H1 FY26), and low inflation rates, which collectively allow it to effectively mitigate the impacts of rising global crude oil prices and ensure domestic energy security. However, if the crisis persists, it could have material implications for the exchange rate and the current account deficit and could stoke inflationary pressures. 

However, the report highlighted that Indian economy has maintained strong momentum in FY26, with real GDP growth estimated at 7.6 per cent and real GVA growth at 7.7 per cent. Economic activity in January 2026 remained broad-based, supported by strong high-frequency indicators, including robust logistics activity, expanding PMI indices and sustained demand conditions, pointing to continued growth momentum. The external sector is stable despite elevated global trade uncertainty.

Moreover, it said India’s active trade diplomacy, including progress on the India-EU FTA, the India-US Interim Trade Arrangement and the India-Oman CEPA, together with Budget initiatives aimed at improving trade facilitation, logistics efficiency and export competitiveness, is expected to diversify export destinations and strengthen external resilience over the medium term. It noted that external developments, including global growth conditions, trade dynamics, commodity price movements and geopolitical factors, will continue to shape the outlook. Nevertheless, it said strong macroeconomic fundamentals and continued reform momentum position the economy well for expansion.

CNX Nifty touched high and low of 24,078.15 and 23,697.80 respectively. There were 8 stocks advancing against 42 stocks declining on the index. 

The top gainers on Nifty were Wipro up by 1.64%, Reliance Industries up by 0.98%, Apollo Hospital up by 0.86%, Infosys up by 0.58% and HCL Technologies up by 0.42%. On the flip side, Tata Motors Passenger down by 5.27%, Ultratech Cement down by 5.25%, Maruti Suzuki down by 4.67%, Eicher Motors down by 4.53% and Mahindra & Mahindra down by 4.44% were the top losers. 

European markets were trading lower; UK’s FTSE 100 decreased 142.91 points or 1.39% to 10,141.84, France’s CAC fell 176.39 points or 2.21% to 7,817.10 and Germany’s DAX lost 422.43 points or 1.79% to 23,168.60.

Asian markets settled lower on Monday as surging crude oil prices above $100 per barrel for the first time since 2022 fuelled inflation concerns and further dimmed the prospects for near-term reductions in US interest rates. Meanwhile, major Middle Eastern oil producers cut output, and shipments through the Strait of Hormuz remain halted. Further, sentiments remained weak as the US-Israel war with Iran entered its second week with no clear resolution. Chinese shares dropped after the release of mixed inflation data, with China's consumer prices (CPI) rising 1.3% year-on-year in February, while the country's producer prices (PPI) fell 0.9% year-on-year.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,096.60

-27.59

-0.67

Hang Seng

25,408.46

-348.83

-1.38

Jakarta Composite

7,337.37

-248.32

-3.27

KLSE Composite

1,674.17

-43.89

-2.55

Nikkei 225

52,728.72

-2,892.12

-5.20

Straits Times

4,756.61

-91.64

-1.89

KOSPI Composite

5,251.87

-333.00

-5.96

Taiwan Weighted

32,110.42

-1,489.12

-4.43
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