News

The Indian stock market suffered strong losses in intraday trade on Friday, March 27, with equity benchmarks — Sensex and Nifty 50 — falling more than 1% each.

Sensex crashed nearly 1,300 points, or 1.7%, to an intraday low of 73,988, while Nifty 50 dropped nearly 400 points, or 1.6%, to the day's low of 22,927. The mid and small-cap indices on the BSE also tanked up to 2%.

Investors lost about ₹8 lakh crore as the cumulative market capitalisation of BSE-listed firms dropped to ₹423 lakh crore from ₹431 lakh crore in the previous session.

Here are five key factors behind the stock market selloff today:

Weak global cues seem to be weighing on domestic market sentiment. Major Asian peers such as Korea's Kospi and Japan's Nikkei dropped up to 2% following a 2% fall in the S&P 500 and Nasdaq amid persisting uncertainties over war in West Asia.

Mixed reports and conflicting signals related to the war in West Asia are keeping investors wary.

While US President Donald Trump has announced Washington will further delay attacks on Iran’s energy infrastructure until April 6, media reports suggest Israel intends to cripple Iran's military-industrial base and deliver a strong setback before the war ends.

"If the war prolongs, crude remains elevated for months together, and gas availability constraints continue, the stress on India’s macros will be significant, and the market will discount that. In brief, everything boils down to how long the war will last," VK Vijayakumar, Chief Investment Strategist, Geojit Investments, observed.

The Indian rupee's weakness further deteriorated market sentiment. The domestic currency dropped to 94.65 against the dollar, surpassing its prior record low of 93.98 reached earlier this week. Since the onset of the conflict late last month, the rupee has fallen approximately 3.5%. A weak rupee further leads to foreign capital outflows from the Indian market.

Brent crude prices jumped to $108 per barrel amid conflicting reports over the US-Israeli war against Iran.

“The on and off reaction of the market to news and events regarding the war is likely to continue in the near-term. The spike in Brent crude back to around the $108 level will again trigger another round of risk-off in the Indian market,” Vijayakumar noted.

Experts believe a late correction in crude oil prices will delay India Inc.'s earnings recovery, potentially dragging market returns lower.

Goldman Sachs has lowered India Inc.'s earnings growth forecasts to 8% and 13% for the calendar years 2026 and 2027, respectively. Prior to the West Asia conflict, the financial firm expected earnings growth of 16% in 2026 and 14% in 2027.

As per NSDL, foreign portfolio investors (FPIs) have withdrawn ₹1,23,688 crore from the Indian financial market in March till the 25th, amid a sharp jump in crude oil prices and the rupee's weakness driven by the US-Iran war.

NSDL data showed that FPIs' equity assets fell by $79 billion to $710 billion in the fortnight ended 15 March— the steepest fortnightly decline in at least six years, even exceeding the COVID-19 pandemic-triggered selloff. FPI assets fell $60 billion to $281 billion in the fortnight ended 31 March 2020, amid global lockdowns.

Read all market-related news here

stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.Nishant is a market reporter at Mint, where he holds the official designation of Principal Correspondent – Markets. He has been closely tracking the Indian stock market as well as major global stock markets along with the broader macroeconomic trends for a decade.

He is obsessed with breaking down complex financial and economic concepts into clear and engaging stories. He focuses not only on what is happening in the markets, but also why it matters.

His coverage includes stock market trends, sector rotations, monetary and fiscal policy developments, inflation, growth data, and personal finance strategies.

With nearly 10 years of experience in covering financial markets, Nishant has covered bull markets, corrections, policy transitions, and macro developments that has equipped him with a deep understanding of how domestic and global forces shape markets and affect investments.

He regularly interviews market veterans, fund managers, economists, policymakers, and corporate leaders to provide readers with a 360-degree view of market dynamics and the broader economic landscape.

Before joining Mint, Nishant worked with some of India’s most respected business newsrooms, including The Economic Times and Moneycontrol, where he reported extensively on the stock market, corporate earnings, macroeconomic trends, GDP, inflation, monetary policies of the RBI and the US Federal Reserve, bonds, and currencies.

Apart from economics and investing, he has interests in geopolitics and emerging technologies, such as AI.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories