Indian equities ended sharply lower on February 27 as rising geopolitical tensions, firm crude oil prices and volatile foreign flows triggered broad-based selling.
The BSE Sensex plunged 961 points, or 1.17 percent, to close at 81,287.19, while the Nifty 50 dropped 318 points, or 1.25 percent, to 25,178.65.
BSE 150 MidCap Index: down 1.09 percent
BSE 250 SmallCap Index: down 0.86 percent
Investor wealth erosion: over ₹5 lakh-crore
Total BSE market capitalisation: fell to ₹463 lakh-crore from ₹468.5 lakh-crore
Uncertainty over US-Iran nuclear talks dampened global risk appetite.
Latest round of talks ended without a deal
US Secretary of State Marco Rubio termed Iran a “very grave threat”
US President Donald Trump reiterated that Tehran would not be allowed to possess nuclear weapons and hinted at possible military action
Fears of escalation in West Asia have revived concerns over supply disruptions and global volatility.
Brent crude rose over 1 percent and continued to trade above $71 per barrel.
Higher oil prices are negative for India as they:
Widen the current account deficit
Put pressure on the rupee
Increase imported inflation
Complicate fiscal management
The spike in crude added to nervousness across equity markets.
Foreign institutional investors (FIIs) have turned cautious despite modest buying in February.
February 26: FIIs sold ₹3,466 crore in the cash segment
February (till 26th): Net buying of ₹896 crore
With valuations still seen as slightly elevated and the rupee hovering near 91 against the dollar, foreign flows remain inconsistent and vulnerable to profit booking.
Key sectors that led the recent rally saw sharp correction.
Banking stocks declined on profit booking
Auto and metal counters saw selling pressure
FMCG stocks also traded weak
Market experts say indices have been in consolidation mode for nearly three months, with stock-specific action dominating broader moves.
Investors stayed cautious ahead of the December-quarter GDP data under the new series.
State Bank of India estimates growth at 8.0–8.1 percent
Economist poll pegs growth around 7.4 percent
Concerns remain over weak nominal GDP growth
While headline growth is expected to remain healthy, softer nominal numbers could weigh on earnings expectations.
With geopolitical risks elevated, crude firm and foreign flows volatile, markets may remain choppy in the near term. Sustained earnings growth and clarity on global developments will be crucial for a durable rebound.