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Weak trade persists in morning session
Mar-27-2026

Indian equity benchmarks continued their weak trade in morning session tracking a weak trend in global peers, as the US-Iran conflict continues to be a key overhang for the markets. Crude oil prices staying above the $100 per barrel mark and unabated foreign fund outflows have also made investors risk-averse. Traders remained cautious as ratings agency ICRA’s report stated that ongoing geopolitical conflict in the West Asia region has triggered a severe surge in global crude oil and natural gas prices, posing a challenge to India's fiscal position by FY2027. Some concern also came as a research by the Asian Development Bank (ADB) stated that the West Asia conflict could lower economic growth in Asia Pacific region by up to 1.3 percentage points over 2026-2027 and raise inflation by 3.2 percentage points if energy market disruptions last more than a year. On the global front, Asian markets were trading mostly in red following the broadly negative cues from Wall Street overnight as traders remain concerned about the economic impact of the expanding conflict in the Middle East, with crude oil prices spiking amid ongoing supply disruption. 

The BSE Sensex is currently trading at 74376.72, down by 896.73 points or 1.19% after trading in a range of 74169.10 and 74904.91. There were 5 stocks advancing against 25 stocks declining on the index.

The few gaining sectoral indices on the BSE were IT up by 0.40% and TECK up by 0.29%, while Realty down by 2.36%, Auto down by 2.23%, Industrials down by 2.15%, Capital Goods down by 2.00% and Consumer Discretionary down by 1.88% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 1.65%, Sun Pharma up by 1.06%, HCL Technologies up by 0.70%, Infosys up by 0.43% and Bharti Airtel up by 0.20%. On the flip side, Bajaj Finance down by 2.91%, Interglobe Aviation down by 2.79%, Reliance Industries down by 2.57%, Larsen & Toubro down by 2.55% and HDFC Bank down by 2.42% were the top losers.

Meanwhile, ratings agency ICRA in its latest report has said that ongoing geopolitical conflict in the West Asia region has triggered a severe surge in global crude oil and natural gas prices, posing a challenge to India's fiscal position by FY2027. It warned that global crude prices have more than doubled compared to pre-crisis levels, raising input and logistics costs and disrupting supplies, including key fertiliser inputs. 

The agency said elevated energy prices could lift the government's fertiliser and LPG subsidy outgo while weighing on corporate tax collections, refining margins and dividend receipts. It said this complicates the government’s budget math for FY27, vide a potential rise in the fertiliser and fuel subsidy burden, lower excise collections in the event of a cut in excise duty to compensate Oil Marketing Companies (OMCs) for marketing losses and an adverse impact on corporate tax revenues.   

ICRA said the government may use the Economic Stabilisation Fund (ESF) to manage fiscal shocks from external crises like the West Asia conflict, along with measures such as front-loading subsidy payments and seeking supplementary grants later in the year. It said while these buffers could help limit any major slippage from the fiscal deficit target of 4.5 per cent of GDP, risks remain skewed to the upside if elevated energy prices persist due to a prolonged conflict. Besides, it said the government can front-load subsidy pay-outs in H1 FY27 and announce supplementary demand for grants (SDG) later, if needed, that could be partly absorbed by the typical expenditure savings seen in recent years.

The CNX Nifty is currently trading at 23006.75, down by 299.70 points or 1.29% after trading in a range of 22967.30 and 23186.10. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were ONGC up by 2.42%, TCS up by 1.58%, Sun Pharma up by 0.81%, HCL Technologies up by 0.77% and Wipro up by 0.59%. On the flip side, Shriram Finance down by 4.37%, Tata Motors Passenger down by 4.01%, Interglobe Aviation down by 2.90%, Bajaj Finance down by 2.74% and Reliance Industries down by 2.63% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 45.65 points or 0.09% to 53,558.00, Taiwan Weighted lost 346.27 points or 1.04% to 32,991.35, Jakarta Composite plunged 63.09 points or 0.89% to 7,101.00 and KOSPI dropped 15.17 points or 0.28% to 5,445.29.

On the flip side, Hang Seng advanced 198.57 points or 0.8% to 25,055.00, Straits Times rose 13.76 points or 0.28% to 4,901.52 and Shanghai Composite strengthened 30.32 points or 0.78% to 3,919.40. 
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