Sensex on Friday opened 800 points down, while Nifty opened opened above 23,000. Following the excise duty reduction by the Centre on Friday, oil stocks have showed an upward trend.
Indian stock markets were down over 1% on Friday, tracking major global counterparts, after crude oil prices returned to above $100 per barrel levels following Iran’s rejection of a US proposal to end the war. The same factors weighed on the rupee, which fell past the 94-per-dollar level for the first time on Friday and at 1010am was trading at 94.28 after touching a new record low of 94.30.
The rupee has now fallen around 3.5% since the war started in West Asia in late February, with Foreign Portfolio Investors (FPIs) having pulled out $13.4 billion in total from Indian financial markets so far in March – the highest monthly figure ever. Of this, a net $12.1 billion has been withdrawn from equity markets. The heavy outflows have pulled the rupee down sharply this month and broken past the 92-, 93-, and now 94-per-dollar levels just this month. The Indian currency had weakened below 90- and 91-per-dollar back in December 2025.
The benchmark Nifty was down 1.4% at 1020am, while the Sensex was down 1.5%. “The on and off reaction of the market to news and events regarding the war is likely to continue in the near-term. The spike in Brent crude back to around $108 level will again trigger another round of risk-off in the Indian market,” said VK Vijaykumar, chief investment strategist at Geojit Financial Services.
Except for information technology, all other sectoral indices are in the negative territory. The India VIX, which indicates volatility in the market, surged 7% in early trade. The volatility indicator has remained elevated despite the market rising earlier this week, suggesting that investors remain jittery.
Friday’s fall comes after a two-day rally over Tuesday and Wednesday that saw the benchmark indices rise 3.5%. Indian markets were shut on Thursday on the occasion of Ram Navami.
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The market fall on Friday also comes after stock indices in the US fell around 2% overnight as a long-term peace deal between the US and Iran hangs in the balance.
“As per Iranian Government request, please let this statement serve to represent that I am pausing the period of Energy Plant destruction by 10 Days to Monday, April 6, 2026, at 8 P.M., Eastern Time. Talks are ongoing and, despite erroneous statements to the contrary by the Fake News Media, and others, they are going very well. Thank you for your attention to this matter!” President Donald Trump posted on Truth Social early morning on Friday, India time.
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On Thursday, Iran had reportedly said it was waiting for a response from the US after it rejected a 15-point proposal to end the war. Iran, instead, has its own plan, that includes reparations for the war. Meanwhile, it is preparing a law to impose a transit toll to cross the Strait of Hormuz.
© The Indian Express Pvt Ltd
