Sensex drops 1,635 points, Nifty falls below 22,350 amid Iran war

Indian equities fell sharply on March 30 as the Iran war, rising crude oil prices, and persistent FII selling weakened global sentiment. Markets stayed under pressure through the day, with investors moving away from riskier assets. Financial stocks faced the heaviest selling, pulling the benchmark indices deep into the red.

By close, the Nifty 50 slipped 488 points or 2.14% to 22,331, while the Sensex dropped 1,635 points or 2.22% to 71,947. The decline was more intense in rate-sensitive and high-beta segments. NIFTY BANK fell 3.82% and NIFTY FINANCIAL SERVICES dropped 3.49%, indicating unwinding in financial stocks. PSU banks suffered even deeper losses, with the NIFTY PSU BANK index sinking 4.56%.

Volatility signaled growing caution as the INDIA VIX rose 4% to 27.89, nearing its 52-week highs. The surge reflected increased hedging activity rather than routine profit booking. Midcap and smallcap indices also weakened, losing between 2.5% and 2.9%, showing that the correction was broad-based and not limited to large caps.

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Defensive Sectors Offer Limited Support Amid Broad Market Sell-off

On the sectoral front, defensives provided only marginal support. FMCG and IT declined less than the broader market, while metals and oil & gas stocks showed relative resilience. Selective buying in commodity-linked counters helped limit their downside, but overall sentiment across sectors remained weak.

Technically, the NIFTY fell below its key support near 22,500 and is now moving toward the lower end of its 52-week range around 21,743. This breakdown has made traders cautious, as it indicates the possibility of further volatility. Analysts believe global uncertainty will continue to influence market direction in the near term.

Vinod Nair of Geojit Financial Services said the market ended the financial year on a cautious note amid global tensions, higher oil prices, and FII outflows. He added that banking stocks lagged after the RBI tightened rules on banks’ forex positions, triggering sharp declines. He noted that despite improved valuations, earnings trends and currency weakness will remain key risks for investors.

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