Iran War Sends Nifty Down 9%, Crude Past $101
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- Nifty 50 closed at 22,819.60, down 486.85 points or 2.09% on the day, and has fallen nearly 9% since the Iran-Israel war began on February 28 — the sharpest drop of the three recent geopolitical conflicts.
- Houthis expanded the war to the Red Sea by firing on international shipping in support of Palestinians, prompting retaliatory air strikes from Israel and the U.S.
- Crude oil surged past $100, with U.S. WTI gaining 7.09% to $101.18 and Brent rising 6.07% to $114.57 in a single session, fueling inflation concerns for energy-importing India.
- Foreign Institutional Investors offloaded Rs 1.14 lakh crore in March alone, taking 2026 net outflows to Rs 1.27 lakh crore as global funds flee emerging markets.
- Indian rupee hit a record low of 94.84 against the dollar, prompting the RBI to cap bank net open positions on the rupee at $100 million per day, with compliance required by April 10.
- Technical analysts flag 22,500–22,470 as the make-or-break support level, with 23,500 acting as immediate resistance, while India VIX surged 9% on fresh geopolitical uncertainty.
- Trading week will be shortened by two holidays — March 31 for Mahavir Jayanti and April 3 for Good Friday — with no new IPOs scheduled; attention turns to the listing of Coal India subsidiary CMPDI.
Why it matters: With crude above $100, the rupee at a record low, and FIIs pulling Rs 1.27 lakh crore in 2026, India Inc faces a margin squeeze from imported energy while equity investors have limited days to reposition before the new financial year. The RBI's new $100 million cap on bank rupee positions — its second intervention this quarter — underscores official concern about currency stability.
