Indian equities saw a sharp sell‑off on Monday, marking a bruising Black Monday for markets as benchmark indices slid steeply on the final trading day of FY26. Escalating tensions in West Asia, crude oil prices hovering close to USD 120 a barrel, relentless foreign fund outflows and a sharply weaker rupee combined to push markets toward their biggest monthly decline in five years as investor wealth was eroded by nearly Rs 50 lakh crore over the past month.
Markets remained under intense pressure throughout the session as panic selling continued across sectors. The Nifty 50 fell 2.11 per cent intraday to 22,337.10, while the Sensex dropped over 1,619 points, or 2.2 per cent, to hit a low of 71,843.29. Broader market weakness was evident, with all major indices declining more than 2 per cent and selling spanning large‑caps, mid‑caps and small‑caps. Notably, Rupee fell to its lowest level at 95.22 per dollar on Monday.
March shaped up to be one of the harshest months for Indian equities since the COVID‑19 crash of 2020. Both the Nifty 50 and Sensex are down around 10.5 per cent each this month, putting them on track for their second‑steepest monthly fall since the pandemic. Heavy foreign institutional investor (FII) selling, with monthly outflows estimated at USD 12.3 billion, has further dented sentiment amid global risk aversion.
The pressure was particularly visible in the banking space, with Nifty Bank sliding close to a one‑year low, currently trading near 50,620. Concerns over higher interest rates, currency volatility and rising global uncertainty have weighed on financial stocks, dragging the index sharply lower.
The sell‑off has also led to a massive erosion in market capitalisation. India’s total market cap fell from Rs 4,63,50,671.27 lakh crore on February 27 to Rs 4,13,24,890.89 lakh crore on March 30, translating into a loss of over Rs 50 lakh crore in investor wealth in just about a month, coinciding with the escalation of the conflict in West Asia.
Adding to the pressure, the rupee hit a fresh lifetime low of 95.22 against the US dollar on Monday, amplifying concerns around imported inflation, higher oil import bills and corporate earnings stress. Rising crude prices and currency depreciation have emerged as key triggers for the ongoing market rout.
With FY26 ending on a weak note, markets are staring at their worst financial‑year performance since FY2020, hit first by geopolitical tensions closer home, then global trade uncertainty and more recently the intensifying Iran‑led conflict in West Asia.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
