MUMBAI– Indian equity markets ended fiscal year 2026 on a sharply negative note, as escalating tensions in the Middle East triggered widespread selling and dampened investor sentiment.
The benchmark Nifty declined 2.14 percent, or 488.20 points, to close at 22,331.40, while the Sensex dropped 1,635.67 points, or 2.22 percent, to settle at 71,947.55.
Analysts said the prolonged conflict has heightened concerns over global economic growth and inflation, prompting investors to reduce risk exposure.
From a technical perspective, market participants noted that the Nifty’s close below the key 22,500 support level signals a continuation of the broader downtrend.
“On the upside, the 22,500–22,600 zone now acts as immediate resistance, where the index has faced repeated selling pressure,” an analyst said.
Financial stocks led the decline, with Bajaj Finance, Shriram Finance, and State Bank of India among the biggest losers on the Nifty. On the Sensex, Tech Mahindra and Power Grid were the only stocks to finish in positive territory, while Bajaj Finance, IndiGo, Bajaj Finserv, Axis Bank, and Kotak Mahindra Bank were among the top laggards.
The sell-off extended beyond large-cap stocks, with broader markets also under pressure. The Nifty MidCap index fell 2.68 percent, and the Nifty SmallCap index declined 2.66 percent.
Sectorally, banking and financial stocks bore the brunt of the downturn. Indices tracking PSU banks, private banks, and financial services were among the worst performers of the session.
Metal and oil and gas stocks showed relatively smaller losses, offering limited support to the market.
Analysts attributed the sharp correction to growing geopolitical uncertainty and persistent inflation concerns.
“The widening of Iranian strikes, reports of Houthis entering the conflict, and a visible U.S. troop buildup in the region collectively raised escalation fears, with no credible pathway to easing energy prices pushing investors firmly into risk-off territory,” a market expert said. (Source: IANS)
