Global Risk-Off: Indian Equities Correct as Brent Crude Surges and FPIs Sell Aggressively

Indian Developments

The Nifty and Sensex ended the week flat after witnessing sharp volatility over the course of the week. Investors remained on edge due to escalating Iran-US tensions in West Asia, a surge in crude oil prices, concerns over global energy supply disruptions, and a sharp fall in the domestic currency.

Although the Indian stock market closed higher on Friday, the Nifty and Sensex could not fully erase the heavy losses sustained throughout the week. Following a robust recovery in the first half of the week, a sharp 3.3% plunge on Thursday wiped out most of the progress. Among the other broader indices, Nifty midcap 150 ended the week at virtually the same level as Monday, while Nifty 100 and Nifty Smallcap 250 slid very marginally by -0.3% and -0.4% respectively.

The Rupee hit an all-time closing low of ?93.71 on Friday, as it remains under intense pressure from a one-two punch of persistent foreign fund outflows and soaring global crude oil prices.

Brent crude remained above the $100/barrel mark, ending the week ~$109/barrel. Prices slightly cooled after reports suggested the U.S. might lift sanctions on Iranian oil and Israel paused strikes.

Sectoral Developments

• Major Laggards: FMCG (-1.9%), Realty (-1.9%), Healthcare (-1.5%), and Financial Services (-1.4%) were the major laggards among the sector indices.
• Sectors in Green: Auto (2.2%) and Metal (1.1%) were the major outperformers. PSU Banks, Commodities, IT, and Infra indices logged marginally positive returns as well.

Global Developments

Global cues remained overwhelmingly negative as investors moved toward safe-haven assets.

• U.S. Markets: Major indices recorded their fourth consecutive weekly decline. Persistent inflation concerns and surging oil prices weighed on sentiment. Major indices ended the week in negative territory; specifically, the Dow Jones saw a 1.41% decline while the S&P 500 dropped 0.99%.
• European Markets: Europe’s STOXX 600 edged higher on Friday, but was set for a third consecutive ?weekly loss, as escalating Middle ?East conflict and a surge in oil prices reinforced inflation fears and increased the odds of a rate hike from the European ?Central ?Bank.
• Asian Markets: In Japan, the rise in crude oil futures continued to weigh on share prices, leading to broad-based declines. The Nikkei 225 index suffered a sharp 3.38% decline on Friday, and an overall weekly loss of 1.98%. Other Asian Markets saw a weekly decline as well, with the CSI 300 and Hang Seng clocking a weekly decline of -2.19% and -0.74% respectively. South Korea’s KOSPI snapped a 2 week losing streak and delivered 5.36% weekly return

Other Markets

• Brent Crude: $109.08 per barrel
• Rupee ended the week at ?93.71 against the US dollar
• 10-Year Benchmark Yield: 6.753%
• Gold prices closed at Rs 1,46,842 per 10 grams.

Source: www.nseindices.com; MCX Gold Prices; Economic times, Bloomberg.

Data for week ended on March 20, 2026.

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