Markets plunge as Brent hits over one-year high on US-Iran tensions; Sensex, Nifty post sharp weekly losses

Indian benchmark equity indices extended losses in the second half of trade on Friday to close sharply lower, as surging crude oil prices and escalating tensions between the US and Iran dampened investor sentiment. 

The Nifty 50 fell 315.45 points, or 1.27%, to close at 24,450.45 while the BSE Sensex declined 1,097 points, or 1.37%, to settle at 78,918.90. 

The BSE Sensex recorded its steepest weekly decline since December 2024, while the Nifty 50 posted its worst weekly fall since February 2025. 

On the 30-share Sensex platform, Eternal Ltd.,  ICICI Bank , and  Axis Bank  were among the major laggards while  Bharat Electronics Ltd.  and  Reliance Industries Ltd. were among the gainers. 

Broader markets also ended in the red. The Nifty Midcap 100 slipped 0.69%, while the Nifty Smallcap 100 declined 0.24%. 

Why Nifty Private Bank emerged as the worst performer 

Among sectoral indices, the Nifty Private Bank emerged as the worst performer, falling 2.27%. The Nifty Bank and Nifty Financial Services were also among the top losers during the session. 

In contrast, the Nifty IT managed to outperform other sectoral indices and ended with marginal gains. 

Market sentiment was weighed down after Brent crude surged to an over one-year high, crossing the $87-per-barrel mark during the European trading session amid fears of supply disruptions. 

According to media reports, shipping activity through the Strait of Hormuz—a key route for global oil supplies—has nearly come to a halt as the US-Iran conflict escalates, heightening concerns over global energy flows. 

According to Bajaj Broking Market Commentary, "Benchmark equity indices declined on 6th March, reversing the previous session’s brief recovery, as persistent geopolitical tensions in West Asia, rising crude oil prices, and continued foreign fund outflows weighed on sentiment. Weak cues from US equities and a subdued trend across Asian markets further dampened investor confidence. Volatility index climbed more than 11 percent to 20 mark, signalling heightened uncertainty among investors."

Why is the rupee under pressure despite limited volatility? 

In the currency market, the Indian rupee remained range-bound throughout the session and ended 6 paise lower at 91.70 (provisional) against the US dollar. 

At the interbank foreign exchange market, the rupee opened at its previous close of 91.64 and traded in a narrow band between a high of 91.54 and a low of 91.78 during the day. 

Forex traders said heavy selling in domestic equities and continued foreign fund outflows exerted pressure on the local currency. 

However, the depreciation was partly capped after the US administration allowed Indian refiners a temporary window to purchase Russian oil. 

On Thursday, Scott Bessent said the US Department of the Treasury had issued a temporary 30-day waiver permitting Indian refiners to buy Russian oil already stranded at sea. “This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage,” Bessent said. 

The rupee had recovered 41 paise on Thursday to close at 91.64 against the dollar after losing 97 paise in the preceding two sessions.