The domestic equity markets opened Thursday’s trade on a lower note, slipping for the second straight session. The benchmark indices opened deep in the red with close to 1% cut each, as crude oil prices spiked again. The Nifty 50 dropped 200 points and is trading near the 23,600 level, while the Sensex declined 802 points. The cut across the banking counters and small and midcaps is no doubt even harsher.
“External headwinds have pushed the market into a weak zone. With the war continuing to rage with no signs of let-up and Brent crude again bouncing back to $100 levels, the weakness is likely to persist. Even though DIIs are continuously buying in the market, DII buying is not helping the market to recover since FIIs are sustained sellers and show no signs of reversing their strategy in this uncertain global environment,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
For investors, markets can be very frustrating at times. This is one such time. The lesson from market history is that attitude and temperament are important in these trying times, he added.
4 reasons why markets are falling?
Here is a detailed look at the key factors why markets continue to be under pressure –
Crude oil price
Crude oil prices surged once again, with Nymex and Brent Crude rates increasing by as much as 7% as the supply disruption along the Strait of Hormuz continues. The historic release of emergency reserves by the International Energy Agency (IEA) was unable to ease investor worries. New strikes on container vehicles in the Strait of Hormuz raised significant concerns for the markets.
Overnight, West Texas Intermediate futures climbed more than 4% to settle at $87.25 per barrel and further surged by 6.62% on Thursday morning to trade at $93.14 a barrel. Brent crude gained about 4.8% to end the session at $91.98 per barrel and was up 7.35% at $98.77 today morning. On COMEX, crude prices surged 1.12% to $84.420 a barrel.
The International Energy Agency (IEA) is looking to release 400 million barrels of oil after the supply disruption due to the Iran conflict. This will be the largest such action in the organisation’s history. The IEA did not set out a timeline for when the stocks would hit the market.
Rupee weakness continues
The high crude oil prices are also impacting the rupee. This, along with a strong dollar, is exerting downward pressure on the rupee. The Indian currency is trading below 92/$ close to its 2026 lows as investor concerns and market apprehension continue.
LPG shortage a big hit
The supply disruption across the Strait of Hormuz has impacted countries, including India. In fact, the country is seeing a massive shortage of liquid petroleum gas (LPG) as a result of this. Many small-time food joints are on the verge of a temporary shutdown. The government has temporarily diverted the priority of cooking gas cylinder supplies to some key sectors, such as education and hospitals.
However, to control the situation, refineries have been directed to increase production by around 10% to stabilise supplies. The supply strain came amid global energy markets linked to tension in West Asia.
FII outflows continue
Foreign Institutional Investors are on a continuous selling spree. They have net sold as much as Rs 39,116.71 crore worth of Indian equities so far in March. To give you context, in January 2026, they sold equities worth Rs 41,435.22 crore and 47,666.68 crore in July, 2025, which was the highest in the last 8 months. The foreign investors have been the net sellers for the last 8 months straight.
