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Markets close lower for fifth straight week amid geopolitical tensions, foreign fund outflows
Mar-27-2026

Indian markets ended the holiday shortened week in red terrain, marking fifth straight weekly loss, as uncertainty around a potential peace deal in West Asia continued amid mixed signals from the US and Iran. Sustained foreign fund outflows and weak rupee also weighed on sentiment. Traders failed to take any sense of relief with government slashing excise duty on petrol and diesel.

Some of the major developments during the week are:

Eight key infrastructure sectors’ output slows to three-month low of 2.3% in February: The Ministry of Commerce & Industry data has showed that eight key infrastructure sectors’ output slowed to a three-month low of 2.3% in February 2026 as compared to 3.4% in the same month last year (February 2025).

Indian private sector growth loses pace in March amid Middle East war: Indian private sector activity expanded in March with weakest pace since October 2022 amid Middle East war. The HSBC Flash India PMI Composite Output Index fell from a final reading of 58.9 in February to 56.5 in March.

S&P Global Ratings raises India’s GDP growth forecast to 7.1% for FY27: S&P Global Ratings has raised India’s gross domestic product (GDP) growth forecast to 7.1 per cent for fiscal year 2026-27 (FY27), citing strong domestic demand drivers such as private consumption, investment and steady exports.

Ongoing West Asia conflict likely to pose challenge to India's fiscal position by FY27: Ratings agency ICRA 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.

Govt cuts excise duty on petrol, scraps diesel duty: The government has cut excise duty on petrol to Rs 3 a litre, from Rs 13 a litre earlier, while the levy on diesel has been slashed to nil from Rs 10 earlier, offering relief to OMCs from a sharp spike in global crude oil prices.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex slipped 949.74 points or 1.27% to 73,583.22 during the week ended March 27, 2026. On the sectoral front, S&P BSE Realty was down by 213.94 points or 3.95% to 5,203.83, S&P BSE PSU was down by 582.34 points or 2.81% to 20,105.74, and S&P BSE Capital Goods was down by 1,641.80 points or 2.44% to 65,702.59 were the top losers, while S&P BSE Information Technology was up by 220.95 points or 0.78% to 28,447.56, S&P BSE TECK was up by 58.88 points or 0.39% to 15,044.73, and S&P BSE Healthcare was up by 121.56 points or 0.29% to 42,427.96 were the few gainers on the BSE.

NSE movement for the week

The Nifty slipped 294.90 points or 1.28% to 22,819.60. On the National Stock Exchange (NSE), Nifty Next 50 lost 1819.25 points or 2.85% to 62,043.05, Bank Nifty was down by 1152.45 points or 2.16% to 52,274.60, and Nifty Mid Cap 100 decreased 757.70 points or 1.38% to 54,097.80, while Nifty IT was up by 342.05 points or 1.17% to 29,541.65.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week, with gross purchases of Rs 70,122.11 crore and gross sales of Rs 95,752.43 crore, leading to a net outflow of Rs 25,630.32 crore. They also stood as net buyers in the debt segment with gross purchases of Rs 14,597.55 crore against gross sales of Rs 10,530.80 crore, resulting in a net inflow of Rs 4,066.75 crore. In hybrid segment, FIIs stood as net buyers, with gross purchases of Rs 2,824.70 crore and gross sales of Rs 501.41 crore, leading to a net inflow of Rs 2,323.29 crore.

Industry and Economy

Amid ongoing conflict between US-Israel and Iran, the Organisation for Economic Cooperation and Development (OECD) in its interim Economic Outlook report has projected that India's Gross Domestic Product (GDP) to grow at 7.6 per cent in the current fiscal year 2025-26 (FY26). It said the decline in (US) tariffs should support growth in India, though gas rationing will disrupt some production activities and fiscal support is expected to fade, with growth easing from 7.6 per cent in FY26 to 6.1 per cent in FY27 and 6.4 per cent in FY28. It noted that the evolving conflict in the Middle East has ‘human and economic costs’ for the countries directly involved, and will test the resilience of the global economy. 

Outlook for the coming week

In the passing week, Indian markets ended with a cut of over a percent as geopolitical tensions sparked concerns over energy supplies.

The coming week will be crucial as the new month begins and there will be some important macroeconomic data to guide the markets. Investors will be eyeing Industrial Production data scheduled to be release on March 30. Government Budget Value to be released on March 31. HSBC Manufacturing PMI Final data going to be out on April 02. Additionally, auto companies would grab some attention, as they will announce their monthly sales figures.

On the global front, investors would be eyeing some important economic data from world’s largest economy, United States (US), starting with Dallas Fed Manufacturing Index on March 30, Redbook YoY, Chicago PMI, Dallas Fed Services Index on March 31, Retail Sales MoM, ISM Manufacturing PMI, Business Inventories MoM on April 01, Balance of Trade, Initial Jobless Claims on April 02. Moreover, Fed Balance Sheet, ISM Services PMI and Baker Hughes Oil Rig Count data are schedule to be release in the coming week.

Top Gainers 

  • Oil & Natural Gas Corporation (ONGC) up by 6.40% was the top gainer on Nifty for the week - ONGC caught investors’ attention as global crude oil prices sky rocketed amid West Asia conflict which caused disruption in key energy supplies. Investors favoured oil and gas explorer stocks as they were optimistic that the high energy prices will benefit such companies in upcoming quarters. ONGC is India's largest government-owned oil and gas explorer.
  • Apollo Hospitals Enterprise up by 1.04% was another top gainer on Nifty for the week - Apollo Hospitals Enterprise traded higher after it completed the acquisition of 30.58% equity stake of Apollo Health and Lifestyle for a consideration of around Rs 1,254.07 crore. Post this acquisition, the company holds 99.42% stake in Apollo Health and Lifestyle.

Top Losers 

  • Shriram Finance by 11.53% was the top loser of the week on Nifty - Shriram Finance faced selling pressure as investors raised concerns that Indian banks and non‑bank lenders including non-banking financial companies (NBFCs) could face rising credit costs, tighter liquidity and pressure on corporate and household borrowers if the conflict in West Asia prolonged, disrupting the global energy supply.
  • HDFC Bank down by 10.30% was another top loser of the week on Nifty - Investors turned cautious after HDFC Bank’s non-executive chairman Atanu Chakraborty abruptly resigned, citing differences over values and ethics. Meanwhile, the bank has appointed external law firms to independently examine the issues highlighted in the resignation letter by Atanu Chakraborty as part of a proactive step to ensure an objective and fact-based assessment.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 23,465.35 on March 25 and lowest level of 22,471.25 on March 23. On the last trading day, the Nifty closed at 22,819.60 with weekly loss of 294.90 points or 1.28 percent. For the coming week, 22,372.12 followed by 21,924.63 are likely to be good support levels for the Nifty, while the index may face resistance at 23,366.22 and further at 23,912.83 levels.

US Market

The US markets traded mostly lower during the week as investors struggled with a mix of a resilient labor market and rising geopolitical tensions in the Middle East. There were concerns that rising oil prices from the Iran conflict could keep inflation elevated.

Some of the major developments during the week are:

US initial claims remain at muted levels: Initial jobless claims in US rose by 5,000 from the previous month to 210,000 on the third week of March, aligned with the median market expectations but remaining below the average from the previous year.

US natural gas inventories down by 54 bcf: The U.S. Energy Information Administration has reported that energy firms withdrew 54 billion cubic feet (bcf) of natural gas from storage in week ended March 20, exceeding expectations for a 44 bcf draw.

US current-account deficit drops in Q4 of 2025: The U.S. Bureau of Economic Analysis data showed that current account deficit narrowed to a seasonally adjusted $190.7 billion in Q4 of 2025 from $239.1 billion in previous period.

US flash PMI signals further growth slowdown in March: The flash S&P Global US Composite PMI slipped to 51.4 in March 2026 from 51.9 in February, marking its lowest level since April last year and signaling a second straight month of slowing growth.

US nonfarm business labor productivity grows 1.8% in Q4: A revised data released by Labor Department showed US nonfarm business labor productivity grew 1.8% in Q4 2025, down from preliminary estimate of 2.8% and sharply lower than 5.2% surge in Q3.

European Market

European markets garnered some gains during the passing week, amid hopes of de-escalation in Middle East tensions following reports that U.S. and Iran are engaged in diplomatic efforts to end their conflict.

Some of the major developments during the week are:

Spain GDP growth rises in Q4: Gross domestic product expanded 0.8 percent from a quarter ago, in line with the estimate released on January 30. This was faster than the 0.6 percent expansion seen in the third quarter.

Eurozone private sector growth hits 10-month low: The data published by S&P Global showed that the flash composite output index posted 50.5 in March, down from 51.9 in February. The score fell below forecast of 51.0.

Spain trade gap narrows in January: The preliminary data from the Economy Ministry showed that the trade deficit dropped to EUR 4.0 billion in January from EUR 6.1 billion in the corresponding month last year.

Italy current account deficit narrows in January: The Bank of Italy reported that the current account gap narrowed to EUR 1.8 billion in January from EUR 4.2 billion in the corresponding month last year.

Sweden economic confidence rises slightly in March: The economic tendency index rose to 99.9 in March from 99.7 in February. Moreover, the index remained just below the normal level of 100.

Asian Market

Asian markets traded mostly lower during the passing week, 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.

Some of the major developments during the week are:

Japan’s Producer Prices climb in February: Producer prices in Japan were up 2.7 percent on year in February, following two straight months at 2.6 percent.

Japan’s composite PMI dips to 3-month low: Flash data showed Japan’s S&P Global Composite PMI slipped to 52.9 in March from a final 53.9 in February.   

Japan’s Leading Index rises less than estimated: Japan’s leading economic index, which measures future economic activity, was at 112.1 in January 2026, below flash data of 112.4 but higher than a downwardly revised 110.4 in the previous month.

Hong Kong’s trade deficit widens in February: Hong Kong’s trade deficit widened sharply to $64.2 billion in February 2026 from $36.3 billion in the same month last year.  

South Korea’s consumer confidence deteriorates in March: South Korea’s Composite Consumer Sentiment Index stood at 107.0 in March 2026, down 5.1 points from 112.1 in February to mark a significant retreat from the 8-year high reached earlier.
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