India Market Daily — March 29, 2026
Indian equity markets are navigating a shortened, three-day trading week ending March 29, 2026, following the steep sell-off on March 27 when the Sensex crashed 1,690 points and the Nifty 50 slumped below 23,000 amid escalating US-Iran war tensions. The sell-off erased approximately ₹9 lakh crore in investor wealth in a single session, with all sectoral indices closing deep in the red. FIIs remained aggressive net sellers on March 27 (the last confirmed trading day), while DIIs partially cushioned the fall with net buying.
India Market Daily — March 29, 2026
Editor's Note: Indian stock markets were closed on Tuesday, March 31 (Mahavir Jayanti) and will be closed again on Friday, April 3 (Good Friday), making this a condensed three-session week. Market data published after the close of March 27 is the most recent available at time of writing. Full March 29 closing data will be updated once confirmed.
Market Snapshot
(Last confirmed close: March 27, 2026)
| Index | Close | Change | % Change |
|---|---|---|---|
| Nifty 50 | 22,819 | −486 | −2.09% |
| Sensex | 73,583 | −1,690 | −2.25% |
| Bank Nifty | — | — | ~−2% to −3% |
| Nifty IT | — | — | ~−2% |
| Nifty Pharma | — | — | ~−2% |
moneycontrol.com
moneycontrol.com
FII & DII Trading Activity in Cash, Futures and Options, OI ...
Closing Bell: Nifty above 23,100, Sensex up 326 pts; IT, metal, pharma stocks rally | Moneycontrol N
Closing Bell: Markets bounce back; Nifty above 22,900, Sensex up 1,372 pts | Moneycontrol News
Top Gainers & Losers
(Based on March 27, 2026 close — last confirmed trading session)
Gainers
- ONGC — Ended as the top gainer on the Nifty 50; energy stocks saw selective buying as oil prices remained elevated due to the US-Iran conflict.
- Wipro — Closed as the second-best performer on the Nifty 50, bucking the broader IT sector weakness.
(Only two confirmed gainers cited in available sources; remaining Nifty stocks broadly declined.)
Losers
- Shriram Finance — One of the top two Nifty losers on the day; financials were broadly under pressure.
- Tata Motors (TMPV) — Closed among the worst performers, with auto stocks seeing broad selling.
- PSU Banks (sectoral) — Nifty PSU Bank was the top sectoral loser, falling over 3.5%, hit by a combination of FII selling and risk-off sentiment.
- Nifty Defence — Lost 3.18%, the second-worst sectoral performer despite the ongoing conflict backdrop.
FII & DII Activity
(March 27, 2026 — most recent confirmed data)
| Category | Net Buy/Sell (₹ Cr) | Trend |
|---|---|---|
| FII (Foreign) | −₹4,367.30 Cr | Persistent sellers; outflows continuing amid Iran war anxiety |
| DII (Domestic) | +₹3,566.15 Cr | Buying on dips; cushioning but unable to offset FII exodus |
FIIs have been aggressive net sellers as geopolitical risk from the US-Iran war fuels capital outflows and a weakening rupee, while domestic institutional investors continue to absorb selling pressure — providing a partial floor but unable to fully offset the foreign exodus. The divergence between FII selling and DII buying has been a defining theme of the current market phase.
Sector Performance
(March 27, 2026 close)
- Banking (PSU): Worst-hit sector, down ~3.5%; rate uncertainty and FII selling hammered public sector banks.
- Defence: Down ~3.18%; despite war-related demand thesis, broader risk-off outweighed sector tailwinds.
- Realty: Down ~3%; rate-sensitive sector under pressure amid inflation and crude oil concerns.
- Auto: Down ~2%; selling pressure on higher input cost fears from elevated crude oil.
- IT: Down ~2%; global growth fears dampened sentiment despite individual outperformers like Wipro.
- Media: Down ~2%; broad-based weakness.
- Consumer Durables / Capital Goods / Private Banks: Each down ~2% — widespread risk-off selling left no major sector unscathed.
Sector summary: PSU Banks led losses with the sharpest decline, while ONGC (energy) and Wipro (IT) were rare bright spots. There was no meaningful outperforming sector on March 27 — the sell-off was broad and indiscriminate, driven by macro and geopolitical fear rather than stock-specific catalysts.
Key Market Movers
1. US-Iran War Drives ₹9 Lakh Crore Wipeout
Escalating conflict between the US and Iran sent shockwaves through Indian equity markets on March 27, with the Sensex crashing 1,690 points and the Nifty 50 slumping 2.09% to 22,819. The sell-off wiped out approximately ₹9 lakh crore in market capitalisation in a single session, with Nifty opening below 23,173 and extending losses through the day. All 50 Nifty constituents ended in the red, with broader markets mirroring the benchmark weakness.
2. Rupee Hits Record Low of 94.29 Against the Dollar
The Indian rupee touched a fresh record low of 94.29 per US dollar on March 27, adding to the bearish sentiment in equities. Capital outflows driven by FII selling, elevated crude oil prices, and war-related uncertainty have pushed the rupee down approximately 4% since the Iran war began. Goldman Sachs has now cut its India 2026 GDP forecast to 5.9%, down 110 basis points since the conflict escalated, and is factoring in a possible 50 bps RBI repo rate hike.
3. India Retains 4% Inflation Target for RBI Through 2031
The Government of India this week officially retained the 4% retail inflation target with a ±2% tolerance band for the period 2026–2031, reinforcing the Flexible Inflation Targeting (FIT) framework adopted in 2016. The move provides policy continuity for the RBI but comes at a sensitive time — with crude oil above $100/barrel and the rupee at record lows, analysts warn the central bank faces a difficult balancing act between controlling inflation and supporting growth.
4. Finance Ministry Flags "Moderation in Economic Momentum"
Early economic data for March 2026 released by India's Finance Ministry shows a "moderation in economic momentum" driven by the West Asia conflict. The report acknowledged sectoral risks, particularly in energy-intensive industries and export-facing sectors, while highlighting areas of resilience. The acknowledgment is significant as it marks the first official government recognition that the Iran war is materially affecting India's near-term economic trajectory.
5. Market Outlook for Shortened Trading Week (March 29–April 2)
Analysts at BusinessToday noted ahead of Monday's session that investors are bracing for a condensed trading schedule: the market will be closed Tuesday, March 31 (Mahavir Jayanti) and Friday, April 3 (Good Friday), leaving only three active sessions. Key levels to watch include Nifty support at 22,500–22,600 and resistance near 23,300–23,500. Strategy recommendations lean toward defensive positioning given geopolitical uncertainty and FII selling pressure.
Macro & Global Cues
-
Rupee: USD/INR hit a record low of 94.29 on March 27 — a 4% decline since the US-Iran war began. A weak rupee amplifies imported inflation, particularly in crude oil and commodities.
-
Crude Oil: Brent crude remains above $100/barrel, a critical pressure point for India's current account deficit and corporate margins. Energy sector stocks like ONGC benefit from high prices, but the broader market suffers from elevated input costs and inflation risk.
-
US Markets: Ongoing uncertainty from the US military engagement with Iran and potential escalation in West Asia weighed on global risk appetite through the week. Indian markets opened sharply lower on March 27, tracking weak overnight global cues.
-
Bond Yields: No specific India 10-year yield data available for this period.
Global factor assessment: The US-Iran conflict remains the dominant macro overhang for Indian markets. Elevated crude oil prices, a weakening rupee, and FII outflows form a negative feedback loop — each reinforcing the others. Despite OECD projecting India as the world's fastest-growing major economy at 7.6% GDP growth for FY26, near-term market sentiment is being dictated by geopolitical risk rather than structural fundamentals.
What to Watch Tomorrow
- US-Iran War Developments: Any ceasefire signals, escalation, or diplomatic progress over the weekend will be the single largest driver of Monday's (March 30) opening. GIFT Nifty futures will be the first indicator.
- Crude Oil Prices: Brent above $100/barrel is the critical threshold — a meaningful decline could trigger relief rallies in PSU banks, auto, and FMCG; a further spike would add selling pressure.
- Rupee Trajectory: Watch USD/INR — if the rupee weakens further past 94.50–95, it could trigger additional FII outflows and sustained market pressure. The RBI may intervene.
- Shortened Week Dynamics: With markets closed Tuesday (Mahavir Jayanti) and Friday (Good Friday), volumes may remain thin and moves exaggerated. Investors are advised to watch for any pre-holiday position-squaring by FIIs on Monday and Wednesday. [Source: https://www.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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