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Key indices extend fall amid crude oil surge, FII outflows
Mar-12-2026

Indian equity benchmarks continued their downtrend for the second straight session and ended with deep cuts on Thursday, amid a sharp rise in crude oil prices due to the heightening crisis in West Asia. Besides, sluggish global market trends, weakness in the rupee and persistent foreign capital outflows also rattled investors' sentiments. 

Some of the important factors in trade:   

India's real GDP growth likely to moderate to 7.1 per cent in FY27: Crisil Intelligence report stated that conflict in West Asia, if prolonged, could pose a downside risk to India's economic outlook due to its impact on crude oil and commodity prices. In its base case, the report expects India's real GDP growth to moderate to 7.1 per cent in FY27, which is still healthy and slightly above potential.

Indian fuel retailers face margin, cash-flow pressure: Moody’s Ratings said state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) absorbing the impact of elevated global energy prices will lead to heightened margin and cash-flow volatility. The three firms control nearly 90 per cent of retail fuel outlets in the country.

Govt fully geared to meet coal demand surge amid West Asia crisis: The government said that it is fully prepared to meet any unprecedented surge in coal demand, with overall coal stocks at about 210 million tonne -- adequate for around 88 days amid escalating tensions in West Asia threatening global energy supplies.

Niti Aayog urges states to stick to FRBM norms, strengthen fiscal discipline: Government think tank Niti Aayog urged state governments to adhere to fiscal deficit norms under the FRBM Act through disciplined expenditure management, broadening the GST base, and enhancing their own tax capacity.

Global front: European markets were trading mostly in red as investors monitor the Iran war and volatile global oil prices. Asian markets ended mostly lower as oil prices kept rising amid widening disruptions to crude transport operations in the Middle East. 

Finally, the BSE Sensex fell 829.29 points or 1.08% to 76,034.42 and the CNX Nifty was down by 227.70 points or 0.95% to 23,639.15.            

The BSE Sensex touched high and low of 76,681.71 and 75,871.18 respectively. There were 6 stocks advancing against 24 stocks declining on the index.

The top gaining sectoral indices on the BSE were Utilities up by 3.31%, Power up by 2.51%, Energy up by 1.06%, PSU up by 0.91% and Capital Goods up by 0.55%, while Auto down by 2.92%, FMCG down by 1.62%, Consumer Discretionary down by 1.59%, Realty down by 1.53% and Bankex down by 1.17% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.79%, Power Grid Corporation up by 1.64%, Tech Mahindra up by 1.61%, HCL Technologies up by 0.71% and Reliance Industries up by 0.05%. On the flip side, Mahindra & Mahindra down by 4.23%, Maruti Suzuki down by 3.60%, Bajaj Finance down by 3.31%, Larsen & Toubro down by 3.06% and Ultratech Cement down by 2.90% were the top losers.

Meanwhile, Crisil Intelligence in its latest report has said that real gross domestic product (GDP) growth of India is likely to moderate but remain healthy at 7.1% in fiscal year 2026-27 (FY27) compared with 7.6% in FY26 (revised under the new GDP series). It noted that conflict in West Asia, if prolonged, could pose a downside risk to India's economic outlook due to its impact on crude oil and commodity prices.

It highlights India’s resilience in withstanding shocks while sustaining growth, as strong domestic demand, ongoing public infrastructure spending, and a gradually expanding private sector capex cycle help offset an uncertain external environment marked by rising protectionism and geopolitical tensions. It also expects export growth to maintain momentum, supported by lower US tariffs relative to FY26, steady global growth and robust services exports even as frontloading benefits fade.

It further said the retail inflation is likely to rise to 4.3 per cent on average in FY27 from an estimated 2.5 per cent in FY26. As food prices are expected to remain benign, assuming a normal monsoon in 2026, inflation should normalise from its current lows. It said the reduced weight of food in the new CPI 2024 series should contain the upside to headline from normalising food inflation.

It also said headline retail inflation is likely to remain close to the central value of the RBI's tolerance band. This would allow the central bank to hold the repo rate and focus on transmitting the 125 bps rate cut implemented in calendar year 2025. It expects that policy rates will remain steady in FY27; the cumulative rate cut of 125 bps undertaken in calendar year 2025 will continue to be transmitted to bank lending and deposit rates.

CNX Nifty touched high and low of 23,833.15 and 23,556.30 respectively. There were 10 stocks advancing against 40 stocks declining on the index.  

The top gainers on Nifty were Coal India up by 5.20%, NTPC up by 2.91%, Power Grid Corporation up by 1.74%, Tech Mahindra up by 1.49% and JIO Financial Services up by 1.38%. On the flip side, Mahindra & Mahindra down by 4.39%, Eicher Motors down by 3.92%, Maruti Suzuki down by 3.72%, Bajaj Finance down by 3.44% and Tata Motors Passenger Vehicles down by 3.30% were the top losers. 

European markets were trading mostly in red; UK’s FTSE 100 decreased 32.72 points or 0.32% to 10,321.05 and France’s CAC fell 28.01 points or 0.35% to 8,013.80, while Germany’s DAX gained 19.47 points or 0.08% to 23,659.50.

Asian markets settled mostly lower on Thursday as the US-Israel conflict with Iran has entered its 13th day with no signs of subsiding. Spike in crude oil prices amid worsening supply concerns following Iranian attacks on commercial shipping around the Strait of Hormuz also dampened market sentiments. Iran’s warning that the world should be ready for oil at $200 per barrel also kept traders cautious. Meanwhile, member countries of the International Energy Agency have unanimously agreed to release its largest-ever emergency release of 400 million barrels of oil.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,129.10

-4.33

-0.10

Hang Seng

25,716.76

-182.00

-0.70

Jakarta Composite

7,362.12

-27.28

-0.37

KLSE Composite

1,711.01

2.23

0.13

Nikkei 225

54,452.96

-572.41

-1.04

Straits Times

4,855.33

-8.48

-0.17

KOSPI Composite

5,583.25

-26.70

-0.48

Taiwan Weighted

33,581.86

-532.33

-1.56
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