Indian equity markets extended their decline on March 12, 2026, with benchmark indices closing sharply lower amid rising geopolitical tensions in West Asia and a spike in global crude oil prices. Investor sentiment remained weak as concerns over inflation and energy import costs triggered broad-based selling across key sectors.
The market downturn wiped out a substantial amount of investor wealth, with the total market capitalisation of BSE-listed companies falling to around ₹436 lakh crore from nearly ₹450 lakh crore on Friday, erasing roughly ₹14 lakh crore in investor wealth.
Index performance
Sensex declined 829.29 points (1.08%) to close at 76,034.42.
Nifty 50 fell 231.25 points (0.97%), ending the session at 23,635.60.
Nifty Bank dropped 615.40 points (1.10%) to 55,120.35.
Nifty IT slipped 39.05 points (0.13%) to close at 29,612.65.
Broader markets also ended lower.
Nifty Midcap declined 232.00 points (0.41%) to 56,229.10.
Nifty Smallcap fell 72.85 points (0.90%) to 7,981.35.
The decline was largely led by auto, banking and NBFC stocks, which dragged the benchmark indices lower.
What drove the market decline?
Escalating West Asia tensions
Rising hostilities in the Gulf region have intensified concerns around disruptions to shipping routes near the Strait of Hormuz, a critical corridor for global energy supply. The geopolitical uncertainty triggered risk aversion across global markets.
Surge in crude oil prices
Brent crude prices climbed toward $100 per barrel, raising concerns about imported inflation and pressure on India’s current account deficit. The surge in oil prices added to market volatility and weighed on investor sentiment.
Foreign investor selling
Higher energy costs and global risk aversion have also prompted continued selling by Foreign Institutional Investors (FIIs), contributing to the downward pressure on Indian equities.
Commodities and Currency
Gold (MCX April 2 contract) rose to ₹1,61,990, gaining ₹201 (0.12%).
Silver (MCX May 5 contract) climbed to ₹2,73,431, up ₹4,940 (1.84%).
The Indian Rupee weakened further and touched a record low of ₹92.35 against the US dollar, reflecting pressure from rising energy import costs and external volatility.
Market volatility also increased, with the India VIX rising over 6% to 22.34, signalling heightened investor anxiety.
Market takeaway
Thursday’s decline highlights the sensitivity of domestic equities to global geopolitical developments and crude oil movements. With oil prices approaching key psychological levels and volatility rising, markets are likely to remain cautious in the near term.
Investors will closely watch developments in West Asia, oil price movements, currency trends, and institutional fund flows for further market direction.
Source: Livemint, Business Standard, Google Finance, Moneycontrol
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