Multiple risk factors are converging to drag global markets lower, as escalating tensions involving Iran threaten severe damage to the Gulf’s oil and gas infrastructure.
Crude oil prices have surged sharply, with Brent touching $112 a barrel and signals pointing to further upside.
US markets fell steeply on Wednesday and futures remain weak this morning. Asian markets opened sharply lower, with losses of up to 3 percent.
Gift Nifty, which closed at 23,218 on Wednesday night, slipped to 23,160 in early trade before recovering slightly to 23,250—indicating a weak start for Indian equities.
The US Federal Reserve kept interest rates unchanged, warning that inflation is not easing as expected and that war-related uncertainties persist. Central banks including the Bank of Japan, Bank of England and the European Central Bank are also expected to hold rates.
HDFC Bank chairman Atanu Chakraborty resigned unexpectedly, citing concerns that certain developments within the bank were not aligned with his values and ethics.
The bank’s ADR fell 7.28 percent in New York before recovering slightly in after-hours trade. ICICI Bank ADR declined 3.17 percent.
US indices ended sharply lower amid rising oil prices and prolonged geopolitical tensions:
Dow Jones fell 768.11 points (1.63 percent) to 46,225.15
S&P 500 lost 91.39 points (1.36 percent) to 6,624.70
Nasdaq dropped 327.11 points (1.46 percent) to 22,152.42
US futures remain weak this morning.
Asian markets are witnessing heavy selling:
Japan’s Nikkei and South Korea’s Kospi dropped nearly 3 percent
Australia declined 1.6 percent
Hong Kong and China opened lower
European markets had earlier closed about 1 percent down.
Indian equities extended gains for a third straight session but closed well off the day’s highs due to elevated crude prices.
India’s crude basket remains above $146 per barrel, compared to about $70 before the conflict.
Mid cap and small cap stocks outperformed benchmark indices.
Sensex rose 633.29 points (0.83 percent) to 76,704.13
Nifty gained 196.65 points (0.83 percent) to 23,777.80
Bank Nifty added 0.82 percent
Mid cap 100 jumped 2.02 percent
Small cap 100 rose 1.67 percent
Market breadth remained strong, with most stocks advancing.
Foreign institutional investors continued selling, offloading ₹2,714 crore, while domestic institutions bought ₹3,253 crore.
Gold fell sharply after losing the $5,000 per ounce support level, closing at $4,819.70—down over 3 percent. Prices have shown slight recovery this morning.
Silver also declined, while platinum, palladium and rhodium remain at elevated levels.
In Kerala, 22-carat gold fell ₹480 to ₹1,15,440 per sovereign.
Analysts attribute the fall to unwinding of leveraged positions but expect the long-term bull run to continue.
Industrial metals mostly declined:
Copper fell 1.37 percent
Aluminium edged up marginally
Nickel, lead, tin and zinc declined
Rubber prices slipped slightly in international markets.
Other commodities:
Cocoa fell 3.40 percent
Coffee declined 0.75 percent
Palm oil eased
Polymers rose up to 5.86 percent
Urea climbed to $610 per tonne
The dollar index moved above 100, supported by steady US rates.
Euro and pound weakened
Japanese yen depreciated to 159.74 per dollar
Chinese yuan strengthened
US 10-year bond yields rose to 4.283 percent.
The rupee weakened further, closing at a record low of 92.63 against the dollar despite RBI intervention.
Concerns over India’s balance of payments are intensifying due to:
Surging oil and gas import costs
Rising trade deficit
Slowing capital inflows
Continued FII outflows
Lower remittances from Gulf economies
The rupee may open above 93 today, with offshore markets already indicating pressure.
Crude oil continues to rally sharply after attacks on energy infrastructure:
Brent crude: $112 per barrel
WTI crude: $99.62
Murban crude: $116.84
Escalation between Iran and Israel has raised fears of supply disruptions across key Gulf producers.
Cryptocurrencies remain under pressure:
Bitcoin fell below $71,000
Ether dropped below $2,200
Solana slipped below $90
(March 18, Wednesday)
Sensex: 76,704.13 (+0.83%)
Nifty 50: 23,777.80 (+0.83%)
Bank Nifty: 55,326.05 (+0.82%)
Midcap 100: 56,289.85 (+2.02%)
Smallcap 100: 16,179.15 (+1.67%)
Dow Jones: 46,225.15 (-1.63%)
S&P 500: 6,624.70 (-1.36%)
Nasdaq: 22,152.42 (-1.46%)
Dollar: ₹92.63 (+₹0.26)
Gold (oz): $4,819.70 (-180.60)
Gold (sovereign): ₹1,15,440 (-₹480)
Brent crude: $107.40 (+$3.98)