Last Updated on February 27, 2026 5:46 pm by INDIAN AWAAZ
Analysts suggest that as the earnings season draws to a close, global macroeconomic developments and geopolitical headlines will drive near-term market direction. Rising crude oil prices, persistent FII selling, and lack of fresh domestic triggers could keep volatility elevated in the coming sessions.
OUR CORRESPONDENT
Benchmark equity indices ended sharply lower on Friday, extending losses amid fresh foreign institutional outflows and weak global cues triggered by escalating geopolitical tensions.
The 30-share BSE Sensex plunged 961.42 points or 1.17% to close at 81,287.19. During intraday trade, it slumped as much as 1,089.46 points to touch 81,159.15.
Similarly, the 50-share NSE Nifty dropped 317.90 points or 1.25% to settle at 25,178.65, slipping below the crucial 25,200 mark.
The sharp correction follows marginal movement in the previous session, where the Sensex had declined 27 points while the Nifty had posted a minor gain.
Global & Macro Factors
Market sentiment remained fragile due to a lack of progress in US–Iran nuclear negotiations, raising fears of heightened tensions in the Middle East. Rising geopolitical uncertainty, coupled with persistent concerns around AI-led global disruptions, pushed investors towards safer assets.
Brent crude oil prices climbed 1.26% to USD 71.64 per barrel, adding to inflationary worries for oil-importing nations like India.
Asian markets showed mixed trends. South Korea’s Kospi declined nearly 1%, while Japan’s Nikkei, Shanghai Composite, and Hong Kong’s Hang Seng ended in the green. US markets closed mostly lower overnight.
Institutional Flow
Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth ₹3,465.99 crore on Thursday. In contrast, Domestic Institutional Investors (DIIs) provided support by purchasing shares worth ₹5,031.57 crore.
Despite DII buying, persistent FII outflows and weak global cues dominated investor sentiment.
Sector-Wise Performance
Auto Sector – Major Drag
Auto stocks witnessed heavy profit-booking after recent gains.
- Maruti Suzuki
- Mahindra & Mahindra
Both stocks ended significantly lower, dragging the indices.
Pharma Sector – Under Pressure
Pharma counters faced selling amid global uncertainty.
- Sun Pharmaceutical Industries** (Sun Pharma)** emerged as one of the top laggards on the Sensex.
Financial Services – Weak Sentiment
Financial stocks also traded in negative territory:
- Bajaj Finserv declined amid risk-off sentiment.
Aviation & Telecom – Broad-Based Selling
- InterGlobe Aviation slipped sharply.
- Bharti Airtel also ended in the red.
IT Sector – Selective Buying
The IT space showed resilience despite global concerns.
- HCL Technologies
- Infosys
Both stocks managed to close higher, benefiting from selective defensive buying.
Retail & Others – Mixed Trends
- Trent emerged as a notable gainer.
- Eternal also ended in positive territory.
Market Outlook
Analysts suggest that as the earnings season draws to a close, global macroeconomic developments and geopolitical headlines will drive near-term market direction. Rising crude oil prices, persistent FII selling, and lack of fresh domestic triggers could keep volatility elevated in the coming sessions.
Investors are expected to remain cautious, with defensive sectors and selective IT stocks likely to witness continued interest if global uncertainty persists.