The Indian stock market resumed its losing streak on Friday, March 27, after a two-day recovery rally, as sentiment was dented by a rebound in crude oil prices and a sharp rise in Indian 10-year bond yields. Conflicting signals from the US and Iran on a potential ceasefire further weighed on sentiment, prompting traders to move away from riskier assets.
The Nifty 50 closed 2.09% lower at 22,819, erasing much of its recent gains and extending its weekly losing streak to five.
The S&P BSE Sensex ended at 73,580, down 2.25% from the previous close. The broader market also saw heavy selling, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices declining by up to 2.3%.
Losses were largely driven by PSU banks, with the Nifty PSU Bank index plunging 4% amid a sharp rise in bond yields.
The Indian 10-year bond yield surged to 6.9%, hitting its highest level since July 2024, driven by a mix of fiscal pressures, energy shocks, and heavy debt supply, which pushed borrowing costs higher.
Additionally, the excise duty cut on petrol and diesel has heightened concerns over the fiscal deficit and long-term fiscal sustainability, further unsettling investors.
Meanwhile, crude oil prices remained elevated, with Brent crude topping $110 per barrel as traders grew increasingly sceptical about the prospects of a US-Iran ceasefire to end the month-long conflict.
US President Donald Trump said he would extend the pause on potential attacks on Iran’s energy infrastructure by 10 days, adding that talks with Tehran had gone “very well.” This follows his earlier decision to halt strikes for five days.
However, hostilities persist, with Israel continuing missile strikes on Iran, while Tehran has intensified its attacks across the Gulf region and tightened its grip on the Strait of Hormuz.
PSU banks, realty and auto stocks lead market decline
Authum Investment & Infrastructure emerged as the top laggard among Nifty 500 stocks, sliding 7.8% to ₹485.9 apiece. It was followed by Godfrey Phillips, Ventive Hospitality, Alkyl Amines Chemicals, Alok Industries, and Reliance Power, all of which declined over 6%.
Paytm also witnessed sharp selling pressure, with the stock falling 5% to ₹1,008, snapping its two-day winning streak.
All 12 constituents of the Nifty PSU Bank index ended in the red, with Bank of Baroda leading the losses, down 4.6% to ₹260 apiece. Punjab National Bank, Canara Bank, UCO Bank, and Indian Bank also declined by up to 4.6%.
Real estate stocks mirrored the broader weakness, with Lodha Developers falling 4.6% to ₹700 apiece. Prestige Estates, Phoenix Mills, Signatureglobal (India), Anant Raj, and Godrej Properties also declined between 3.8% and 4.5%.
Auto stocks, too, gave up recent gains. Tata Motors was the top laggard in the pack, falling 4.6% to ₹303 apiece. Ashok Leyland, Sona BLW Precision Forgings, Tube Investments of India, UNO Minda, and Samvardhana Motherson International also dropped by up to 4.6%.
Heavyweight Reliance Industries declined 4.6%, marking its biggest single-day fall since June 2024. PG Electroplast also saw renewed selling pressure after a brief rally, falling 5.65% to ₹488 apiece.
Overall, more than 100 constituents of the Nifty 500 index declined over 4%.
Select stocks defy sell-off; HEG, Graphite India lead gains
Amid a broad-based sell-off, a few stocks managed to buck the trend, with HEG topping the gainers’ list, surging 13.8% to ₹572 apiece. Similarly, OneSource Specialty Chemicals rose 8.5% to ₹1,447 apiece.
Extending gains for a second straight session, Graphite India advanced 7.5% to ₹640 apiece. Other stocks, including ACME Solar Holdings, Apar Industries, Oracle Financial Services, Sagility, ONGC, and Karur Vysya Bank, also gained over 4%.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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