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Markets trade lower after cautious start amid global tensions
Mar-11-2026

Indian equity benchmarks have made a cautious start and are trading lower with cut of over quarter percent in early deals on Wednesday as traders remained focused on geopolitical developments in West Asia. Besides, gains in select heavyweights were offset by weakness in banking stocks. Some cautiousness came as ICRA said escalating conflict in West Asia could pose downside risks to India's economic growth outlook if the conflict persists. It expects India's real GDP growth to be around 7.1 per cent in FY27, slightly lower than the 7.6 per cent estimated for FY26. Sustained foreign fund outflows also dented domestic sentiments. Foreign institutional investors sold shares worth Rs 4,672.64 crore on March 10.

However, down side remained capped amid broadly positive global cues with most of the Asian markets trading higher as sentiments improved amid reports that International Energy Agency (IEA) has proposed the largest ever release of crude oil reserves in its history to offset supply disruptions caused by the US-Iran conflict. The move is aimed at stabilising global energy markets and cooling prices that had surged amid geopolitical tensions.

The BSE Sensex is currently trading at 77917.74, down by 288.24 points or 0.37% after trading in a range of 77891.08 and 78324.37. There were 13 stocks advancing against 17 stocks declining on the index.

The top gaining sectoral indices on the BSE were Utilities up by 1.56%, Metal up by 1.44%, Power up by 1.18%, Realty up by 0.89% and Oil & Gas up by 0.86%, while Bankex down by 0.48%, TECK down by 0.42%, FMCG down by 0.29% and IT down by 0.14% were the few losing indices on BSE.

The top gainers on the Sensex were Interglobe Aviation up by 2.05%, Adani Ports & SEZ up by 1.94%, Tata Steel up by 1.54%, NTPC up by 1.34% and Sun Pharma up by 0.98%. On the flip side, Kotak Mahindra Bank down by 1.24%, ICICI Bank down by 0.99%, Bharti Airtel down by 0.99%, Bajaj Finserv down by 0.99% and Bajaj Finance down by 0.95% were the top losers.

Meanwhile, expressing concerns over ongoing crisis in West Asia and its impact, ICRA in its report has said that there will be a downside risk to the India’s growth projection for FY2027 due to this conflict. The magnitude of this risk depends on the conflict's duration and its impact on domestic investment, inflation, and external trade. ICRA currently projects the real GDP growth at a healthy around 7.1% in FY2027 (vs. 7.6% in FY2026 Second Advance Estimates (SAE)) as per new 2022-23 series, amid favourable developments including the interim deal with the US with a lower tariff rate, improved prospects for domestic investment, aided by the robust hike in Central capital spending included in the Union Budget. In nominal terms, ICRA projected the GDP growth (2022-23 base) at around 10.1% in FY2027, up from 8.6% in FY2026 SAE, amid an expected pick-up in WPI and CPI inflation compared to the current fiscal.

The ongoing conflict has led to disruptions in shipping routes around the Strait of Hormuz, a key global energy corridor, raising concerns over potential supply disruptions and higher freight costs. West Asia remains a significant trade partner for India, accounting for around 14 per cent of exports and nearly 21 per cent of imports, making the country vulnerable to disruptions in trade flows and energy supplies if tensions escalate further. As a result, the conflict poses meaningful risks to India's trade flows, particularly in the form of higher freight costs, supply delays, and uncertainty over energy supplies.

According to ICRA, a $10 per barrel increase in crude oil prices could widen India's current account deficit by 0.30-0.40 per cent, while also pushing up wholesale and consumer price inflation. Higher fuel costs could dampen consumption demand and weigh on overall economic activity. Its baseline projections assume crude oil prices averaging $70-75 per barrel in FY2027, which could keep the current account deficit at around 1 per cent of Gross Domestic Production (GDP). However, if prices rise to $100-105 per barrel, the deficit could expand to about 1.9-2.2 per cent of GDP, increasing macroeconomic pressures. It added that the situation could also impact remittance inflows, with around 40 per cent of India's inward remittances originating from West Asian countries, including the UAE and Saudi Arabia.

The CNX Nifty is currently trading at 24192.45, down by 69.15 points or 0.29% after trading in a range of 24181.75 and 24299.00. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Interglobe Aviation up by 2.21%, Hindalco up by 1.81%, Adani Ports & SEZ up by 1.75%, Tata Steel up by 1.44% and NTPC up by 1.19%. On the flip side, Kotak Mahindra Bank down by 1.35%, Max Healthcare Inst down by 1.22%, Tata Consumer Products down by 1.03%, Bajaj Finserv down by 1.02% and SBI Life Insurance down by 0.97% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted jumped 1406.4 points or 4.11% to 34,178.27, Nikkei 225 surged 1382.61 points or 2.49% to 55,631.00, KOSPI rose 191.38 points or 3.34% to 5,723.97, Hang Seng strengthened 19.1 points or 0.07% to 25,979.00, Jakarta Composite gained 10.42 points or 0.14% to 7,451.33 and Shanghai Composite was up by 2.18 points or 0.05% to 4,125.32, while Straits Times was down by 3.25 points or 0.07% to 4,857.39.
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