Mumbai: Indian stock markets closed the final trading session of FY26 on a sharply negative note, as escalating tensions in the Middle East triggered a broad-based sell-off and dampened investor sentiment.
Growing concerns over the prolonged conflict and its potential impact on global economic growth and inflation led to heavy selling across equities.
The benchmark Nifty declined by 2.14 per cent, losing 488.20 points to settle at 22,331.40. The Sensex also fell significantly, dropping 1,635.67 points or 2.22 per cent to close at 71,947.55.
Market experts pointed out that the Nifty’s close below the crucial 22,500 level is technically significant, indicating a continuation of the ongoing downtrend. They added that the 22,500–22,600 range is now likely to act as an immediate resistance zone, where selling pressure could persist.
Financial stocks were among the worst hit, with heavy losses seen in major players such as Bajaj Finance, Shriram Finance, and State Bank of India on the Nifty.
Within the Sensex pack, Tech Mahindra and Power Grid were the only stocks to end in positive territory, while most others—including Bajaj Finance, IndiGo, Bajaj Finserv, Axis Bank, and Kotak Mahindra Bank—closed lower.
The weakness extended beyond large-cap stocks, as broader markets also faced significant declines. The Nifty MidCap index dropped 2.68 per cent, while the Nifty SmallCap index fell 2.66 per cent.
Sector-wise, banking and financial indices took the biggest hit, with Nifty PSU Bank, Nifty Bank, and Nifty Financial Services emerging as the worst-performing sectors of the day.
Meanwhile, metal and oil & gas stocks showed relatively smaller declines, offering limited support to the overall market.
Analysts noted that rising geopolitical uncertainty and persistent inflation concerns continued to weigh heavily on investor confidence, leading to a sharp correction at the close of the fiscal year.
They added that the widening scope of the conflict—including increased Iranian strikes, reports of Houthi involvement, and a visible buildup of US forces in the region—has heightened fears of further escalation, keeping investors firmly in a risk-off mode.
With inputs from IANS