Benchmarks Post Worst Week in Years as West Asia War Drives Oil Above $100

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

India stocks fall, rupee fall

By Dehuti Jani

March 13, 2026 at 11:35 AM IST

Indian equity benchmarks continued their downward trend for a third straight session on Friday, marking their worst weekly performance in years. The ongoing West Asia conflict pushed crude oil prices above $100 per barrel, raising concerns about inflation and growth for India, the world's third-largest crude importer. The Nifty50 dropped 2.06% to 23,151.10, while the BSE Sensex fell 1.93% to 74,563.92 as the prolonged US-Iran dispute worsened the gas supply crunch.

Over the week, the Nifty lost 5.3%, its steepest decline since June 2022; the Sensex fell 5.5%, its poorest showing since May 2020. BSE-listed companies saw their combined market capitalization shrink by ₹9.5 trillion to ₹430.19 trillion. The India VIX climbed 5.23% to 22.65, highlighting sustained investor anxiety. Goldman Sachs cautioned that India could face a significant terms-of-trade impact due to rising energy costs from the conflict, while Fitch Ratings projected India's GDP growth at 7.5% for FY26 and inflation at 4.5% by December 2026.

Amid intensifying diplomatic efforts, External Affairs Minister S Jaishankar held his fourth discussion with his Iranian counterpart since the crisis started, as New Delhi worked to ensure safe passage for 28 merchant ships stranded near the Strait of Hormuz.

The broader markets today mirrored the benchmark indices' drop, with the Nifty MidCap 100 and Nifty SmallCap 100 declining 2.62% and 2.52%, respectively. Nifty Metal was the hardest-hit sector, falling 5% amid global risk aversion and weak demand, while Nifty PSU Bank and Nifty Media also recorded notable losses.

Top Movers of the Day

IFCI surged over 11% after the NSE appointed 20 merchant bankers and eight law firms for its upcoming IPO, with IFCI holding an indirect stake in NSE through its subsidiary Stock Holding Corporation of India, which could participate as a selling shareholder in the offer.

Eternal hit an 11-month low of ₹214.15 on the BSE, falling 3% in a market already under significant pressure, on growth concerns surrounding the delivery platform company.

Zydus Wellness surged 16% to ₹450 on the BSE amid heavy volumes, its fourth straight session of gains, having soared 20% over the period, though still well below its 52-week high of ₹530.55.

NTPC Green Energy climbed 7.25% to an intraday high of ₹104.73 on the NSE, bucking the broader market weakness as power demand concerns continued to attract buying interest.

Shaily Engineering Plastics rose 2.8% to an intraday high of ₹1,969 on the BSE, extending its recent positive momentum on the back of its recent large order win.

ACME Solar Holdings jumped 9.2% to an intraday high of ₹262.45 on the BSE, continuing to attract buying interest amid the broader push into renewable energy.

Great Eastern Shipping hit a 52-week high of ₹1,506, gaining 1% on the BSE for its fourth straight session of gains, surging 13% over the period and edging closer to its all-time high of ₹1,542.80 touched in July 2024.

Vodafone Idea was in focus after HDFC Securities flagged the stock as a high-risk, high-reward opportunity, citing government relief on AGR dues, prospects of a fresh capital raise, expectations of tariff hikes and a planned capex of ₹500–550 billion.

Balaji Amines slipped as much as 4.5% to an intraday low of ₹986.15 on the BSE before partially recovering to trade 2.74% lower at ₹1,005.

Futures & Options
Nifty March 2026 futures closed at 23,228.40, a premium of 77.30 points over the spot Nifty, which tumbled 488.05 points or 2.06% to settle at 23,151.10 in the cash market. The modest premium reflected deeply defensive positioning, with traders showing little appetite to build fresh long exposure amid the relentless geopolitical pressure from the West Asia conflict. India VIX rose a further 5.23% to 22.65, its highest closing level since the onset of the crisis, marking yet another session of elevated volatility expectations as crude oil prices remained stubbornly above $100 per barrel. HDFC Bank, Larsen & Toubro and Reliance Industries were the most actively traded stock futures contracts in the F&O segment on the NSE.

Bonds
Indian government bond yields edged marginally higher on Friday, with the benchmark 6.48% 2035 bond yield closing at 6.6798%, up slightly from 6.6666% at Thursday's close, as oil holding firmly above $100 per barrel stoked inflation fears and clouded India's growth and monetary policy outlook. The Reserve Bank of India provided a measure of support through an open market operation on 13 March 2026, purchasing government securities worth ₹500 billion across eight securities, with cut-off yields ranging from 6.1187% for the 2029 paper to 7.3268% for the 2046 bond. The OMO purchase helped limit the extent of the yield rise, though persistent West Asia-driven energy price pressures continued to weigh on fixed income sentiment heading into the weekend.

Forex
The Indian rupee fell to a fresh record low on Friday, with the currency weakening to 92.4750 per dollar, eclipsing Thursday's all-time low of 92.3575, as concerns mounted that the Iran war-induced surge in oil prices could disrupt India's growth-inflation dynamics and dent capital flows. Elevated offshore dollar bids added further pressure through the session, though likely RBI intervention helped limit losses, with the rupee closing down 0.7% on the week at 92.4550.

Crypto
Bitcoin surged near $72,000 on Friday, continuing its recent upward trend as investors reacted well to new US regulatory moves and decreased worries about rising oil prices. The SEC and Commodity Futures Trading Commission revealed plans to collaborate on a more transparent regulatory structure for crypto markets, aiming to coordinate policy and oversight for digital assets and emerging technologies, a step generally considered positive for market stability. Ethereum, XRP, and Solana also rose, with each climbing 3% to 5%, bringing total crypto market capitalization up about 3% to roughly $2.43 trillion, even though $253 million in positions were liquidated over the previous 24 hours.

US Stock Futures
US stock futures were little changed on Friday as investors awaited key inflation data, with surging oil prices in the wake of the Iran war continuing to cast a shadow over equity markets. Dow Jones Industrial Average futures rose a modest 29 points or 0.1%, while S&P 500 and Nasdaq 100 futures were broadly flat. Stocks were coming off a losing session after oil spiked on Thursday following comments from Iran's new Supreme Leader Mojtaba Khamenei, who said the Strait of Hormuz should remain shut as a tool to pressure the enemy, heightening fears of a prolonged disruption to global energy supplies.

US Treasury Notes
Yields on US Treasury held near five-week highs on Friday, as geopolitical escalation in West Asia and surging global oil prices continued to weigh on the bond market. The benchmark 10-year note yield held steady at approximately 4.27%, while the 30-year bond yield nudged slightly higher to 4.89%, as concerns that Brent crude surpassing $100 per barrel could reignite inflation kept upward pressure on yields. Investors were caught between these inflationary risks and Treasuries' traditional safe-haven appeal, creating a tug-of-war that has kept yields elevated even as geopolitical uncertainty would ordinarily drive demand for government debt.

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