Black Monday: Markets Plunge into Correction Zone Amid US-Iran War; Brent Crude Hits $104

Last Updated on March 9, 2026 8:08 pm by INDIAN AWAAZ

PSU Banks, Auto and Infrastructure Stocks Lead Losses; IT Shows Resilience

AMN / BIZ DESK

Indian equity markets witnessed sharp volatility on Monday as benchmark indices BSE Sensex and NSE Nifty 50 ended significantly lower amid surging global oil prices, geopolitical tensions in West Asia, and a sharp depreciation of the Indian rupee. Although markets recovered partially from intraday lows, the session reflected deep investor concerns about inflationary pressures and economic uncertainty.

The BSE Sensex plunged 1,352.74 points (1.71%) to close at 77,566.16, marking its second consecutive day of losses. During the session, the index had crashed as much as 2,494.35 points (3.16%) to an intraday low of 76,424.55 before staging a partial recovery.

Similarly, the NSE Nifty 50 declined 422.40 points (1.73%) to settle at 24,028.05. Earlier in the day, the benchmark had dropped sharply by 752.65 points (3.07%), touching an intraday low of 23,697.80. From the day’s lowest point of 23,868.05, the Nifty managed to recover nearly 160 points as crude oil prices cooled slightly later in the trading session.

Market analysts noted that the Nifty has now fallen more than 10 percent from its record high of 26,373 recorded on January 5, pushing the index into the technical correction zone, a signal of weakening short-term market sentiment.

Sector-wise Market Performance

Banking and Financial Sector

The Nifty PSU Bank index emerged as the worst performer, declining 3.97 percent. Major public sector banks faced heavy selling pressure as rising global uncertainty triggered risk aversion among investors. Stocks such as State Bank of India were among the major laggards in the benchmark indices.

Automobile Sector

Auto stocks also witnessed sharp declines. Maruti Suzuki and Mahindra & Mahindra were among the top losers on the Sensex. Rising crude oil prices and a weakening rupee raise concerns about higher input costs and potential pressure on demand in the auto industry.

Infrastructure and Aviation

Infrastructure-linked companies and aviation stocks were also under pressure. Adani Ports and InterGlobe Aviation saw notable declines, reflecting fears that higher fuel prices could affect logistics and airline profitability.

Cement and Construction

The cement sector faced steep losses, with UltraTech Cement emerging as the biggest loser in the Sensex pack, plunging over 5 percent during the session. Rising energy costs, particularly coal and fuel, often impact cement manufacturers’ margins.

Information Technology

In contrast, the IT sector showed resilience. The Nifty IT index ended marginally higher by 0.08 percent, supported by gains in companies such as Infosys, Tech Mahindra, and HCL Technologies. Technology stocks often benefit from a weaker rupee since a large portion of their revenues comes from overseas markets.

Pharmaceuticals and Energy

Defensive sectors such as pharmaceuticals also attracted buying interest. Sun Pharma was among the gainers, while Reliance Industries helped limit the fall in the benchmark indices.

Midcap and Smallcap Stocks Underperform

Broader markets faced heavier selling pressure compared to the benchmark indices. The Nifty MidCap index declined 1.97 percent, while the Nifty SmallCap index dropped 2.22 percent, reflecting heightened caution among investors toward riskier stocks.

Oil Prices Surge and Currency Hits Record Low

Global crude oil prices played a major role in the market turbulence. Brent crude futures surged over 12 percent, trading around $104 per barrel after touching a high near $120 per barrel earlier in the day. The spike was driven by escalating tensions in the US–Iran conflict, raising fears of supply disruptions in the energy market.

Meanwhile, the Indian rupee weakened sharply, falling 53 paise to close at an all-time low of 92.35 against the US dollar. In the interbank foreign exchange market, the rupee opened at 92.22, briefly strengthened to 92.15, but gradually lost ground through the session before hitting the record low.

Market Outlook

Analysts believe markets may remain volatile in the coming days due to global geopolitical tensions, crude oil fluctuations, and currency movements. Investors are expected to closely monitor developments in the Middle East conflict and global commodity prices, which could significantly influence inflation, corporate earnings, and investor sentiment in the Indian markets.