Indian stock markets concluded the last trading session of fiscal year 2026 on a weak note, influenced by escalating global tensions related to the ongoing Middle East conflict. The prolonged war has sparked worries about economic growth and inflation, resulting in significant selling pressure across equities. The benchmark Nifty witnessed a sharp decline of 2.14%, or 488.20 points, settling at 22,331.40, while the Sensex also dropped by 2.22%, or 1,635.67 points, finishing at 71,947.55.
Commenting on the technical outlook for Nifty, experts highlighted the significance of the close below the crucial 22,500 support zone, indicating a continuation of the broader downtrend. They noted that the 22,500–22,600 zone now serves as immediate resistance, facing repeated selling pressure. Financial stocks, including Bajaj Finance, Shriram Finance, and State Bank of India, experienced notable selling pressure on the Nifty index.
In the Sensex pack, only Tech Mahindra and Power Grid closed in the green, while other major players like Bajaj Finance, IndiGo, Bajaj Finserv, Axis Bank, and Kotak Mahindra Bank were among the top losers. The weakness extended beyond large-cap stocks, with broader markets witnessing significant declines; the Nifty MidCap index slipped by 2.68%, and the Nifty SmallCap index fell by 2.66%.
The sell-off predominantly impacted banking and financial stocks, with indices such as the Nifty PSU Bank, Nifty Bank, and Nifty Financial Services emerging as the worst performers of the day. On the other hand, metal and oil & gas stocks displayed relatively lesser declines compared to other sectors, offering some support to the market. Analysts attributed the sharp correction in equities at the fiscal year-end to heightened geopolitical uncertainty and inflation concerns, which dampened investor sentiment.
