Sensex falls 0.66% as Brent hits $100 amid US-Iran tensions

Markets extend losses as risk appetite weakens

Indian equities ended lower for the second straight session on Friday as geopolitical tensions in West Asia resurfaced and revived worries around energy supplies. Investors also tracked foreign fund outflows and a weak global market trend, which added to the cautious tone. The decline came alongside a move higher in crude oil prices, a key macro variable for India as an oil importer. Market commentary pointed to profit booking and defensive positioning heading into the weekend. Despite the downbeat mood in frontline indices, some pockets of the broader market held up better.

Sensex and Nifty close lower; intraday volatility stays high

The 30-share BSE Sensex fell 516.33 points, or 0.66%, to close at 77,328.19. During the session, it dropped as much as 698.09 points, or 0.89%, to 77,146.43. The NSE Nifty declined 150.50 points, or 0.62%, to settle at 24,176.15. The previous session had also ended marginally lower, with the Sensex down 114 points at 77,844.52 and the Nifty lower by 4.30 points at 24,326.65. The back-to-back declines underscored how quickly sentiment shifted as geopolitical headlines returned to the foreground.

Crude back near $100 and West Asia headlines drive caution

Ajit Mishra, SVP - Research at Religare Broking, said the decline was driven by a fresh spike in crude oil prices, with Brent crude moving back above the $100 mark amid renewed military exchanges between the US and Iran. The move in oil prices dampened hopes of a near-term peace agreement and added to risk aversion. Mishra also cited continued weakness in the rupee and cautious institutional positioning ahead of the weekend as factors that capped risk appetite. Stock-specific earnings reactions were described as mixed, adding to intraday choppiness.

Brent crude levels in focus through the session

Brent crude traded around $100 per barrel, keeping energy supply concerns in focus. In the futures market, Brent, the global oil benchmark, was trading 0.25% lower at $19.81 per barrel at one point. Vinod Nair, Head of Research at Geojit Investments Limited, described the session as risk-off following fresh US-Iran military action near the Strait of Hormuz. He said stability in crude around $100 per barrel and benign US 10-year yields continued to provide some support to broader sentiment and the rupee, even as investors booked profits.

Financials lead the drag; IT and FMCG show resilience

The market’s sectoral picture remained mixed but tilted negative, with heavy selling in rate-sensitive segments. Banking and financial indices were under pressure, with Nifty Bank, Financial Services, and PSU Bank declining sharply, indicating weakness in rate-sensitive stocks. Realty and oil & gas also ended in the red, adding to the downside. On the positive side, IT and FMCG indices managed modest gains, and selective buying was seen in Healthcare, Consumer Durables, and Midcap segments, according to Gaurav Garg of Lemonn Markets Desk.

Stock-specific laggards include large financial names

Among the laggards mentioned were HDFC Bank, Bajaj Finance, and Axis Bank, reflecting the pressure on financials. UltraTech Cement and Mahindra & Mahindra were also cited among the stocks that ended on the weaker side. The commentary around the day’s trade suggested investors were not uniformly risk-off, but were rotating selectively while keeping exposure tight amid global uncertainty.

Broader market indicators show a split trend

In the broader market, the BSE SmallCap Select index rose 0.34%, while the MidCap Select index slipped 0.01%. This divergence indicated that selling pressure was not uniform across the market. Even as headline indices reacted to macro and geopolitical risks, selective buying continued in parts of the broader universe. The mixed breadth also aligned with the “mixed earnings reactions” referenced in market commentary.

Weekly snapshot highlights FII selling and IT weakness

A separate weekly wrap in the same set of updates described a weak end to the week, with benchmark indices declining about 2% amid escalating West Asia tensions, higher crude, and heavy selling in IT stocks. On a weekly basis in that wrap, Sensex and Nifty ended lower by 2.3% and 1.9%, respectively. Broader markets showed relative resilience there, with the BSE Midcap and BSE Smallcap down 0.6% and 0.2% week-on-week. On flows, foreign institutional investors (FIIs) were net sellers of Rs 1,369 crore during the week, while domestic institutional investors (DIIs) bought Rs 9,782 crore.

Strait of Hormuz developments add to oil-market uncertainty

Analysts linked volatility to US-Iran tensions and disruptions around the Strait of Hormuz. The weekly account said that after Iran announced the opening of the shipping lane, US naval forces intercepted an Iranian vessel, which was followed by renewed threats against Iranian infrastructure. Iran then re-imposed restrictions on the Strait of Hormuz, triggering a sharp spike in crude prices that surged over 15% during the week to $107 per barrel. The same account added that US President Donald Trump reportedly extended the ceasefire arrangement with Iran indefinitely, adding to uncertainty.

Earlier sell-off shows sensitivity to crude and foreign outflows

The article set also referenced a sharp fall on Monday, March 30, 2026, described as a volatile end to the 2025-26 fiscal year. On that day, the Sensex tumbled 1,635.67 points, or 2.22%, to close at 71,947.55 after opening at 72,565 and sliding to an intraday low of 71,774.13. The Nifty fell 488.20 points, or 2.14%, to 22,331.40. Brent crude jumped 2.18% to $115.1 per barrel, and the update noted India relies on imports for over 85% of its oil needs. It also said FIIs pulled out a record Rs 1.14 lakh crore from Indian equities in March alone, with a preceding Friday seeing FII selling of Rs 4,367.30 crore and DII buying of Rs 3,566.15 crore.

Key data points at a glance

Why the move matters for Indian investors

The day’s decline showed how quickly Indian equities can reprice when oil and geopolitics move together. Crude around the $100 level tends to heighten concerns around inflation, corporate input costs, and currency stability, themes also referenced through comments on rupee weakness. Sector performance suggested investors were especially cautious in financials and other rate-sensitive areas, while defensives such as FMCG and selective IT showed relative resilience. Flow data in the weekly update highlighted a continuing split between foreign selling and domestic buying, a pattern that can influence index direction during volatile phases.

Conclusion

Indian equities ended the week with a cautious tone as West Asia tensions, crude price swings and foreign outflows weighed on sentiment. With Brent hovering near $100 and the Strait of Hormuz remaining a key headline risk, markets are likely to continue tracking energy prices, institutional flows and earnings updates closely in the coming sessions.