The Indian equity market extended its sharp slide for a second straight session on March 30, with benchmark indices losing over 2 percent each amid escalating global concerns and persistent selling pressure.
The Sensex plunged 1,636 points, or 2.22 percent, to close at 71,947.55, while the Nifty 50 dropped 488 points, or 2.14 percent, to settle at 22,331.40. Broader markets also remained under pressure, with the BSE mid cap and small cap indices falling 2.51 percent and 2.57 percent, respectively.
Over the two sessions, the Sensex has shed 3,326 points, or 4.42 percent, and the Nifty 50 has declined 975 points, or 4.18 percent. Investor wealth eroded by more than ₹18 lakh-crore, with the total market capitalisation of BSE-listed firms dropping to below ₹413 lakh-crore from ₹431 lakh-crore at the end of last week.
The sell-off has been driven by a mix of global and domestic factors:
The ongoing conflict between the US and Iran, now stretching beyond a month, continues to unsettle markets. While there have been tentative backchannel efforts and proposals for a ceasefire, there is no clear breakthrough. The situation has worsened with the involvement of Iran-backed groups, raising fears of a prolonged disruption in West Asia.
Brent crude prices have surged past $115 per barrel, driven by supply concerns and disruptions around the Strait of Hormuz. For India, which imports nearly 85–90 percent of its oil needs, this sharp rise threatens to worsen inflation, widen fiscal and current account deficits, and dampen growth prospects.
The India VIX climbed to 28, well above its normal range of 12–15, signalling heightened uncertainty. Such elevated levels indicate expectations of continued market swings over the near term.
Foreign portfolio investors have continued to offload Indian equities aggressively. Data shows net outflows exceeding ₹1.23 lakh-crore in March so far, reflecting risk aversion amid global instability and a weakening domestic macro outlook.
The rupee slipped to a fresh record low of 95.23 against the dollar, exacerbating concerns over capital outflows and imported inflation. Currency weakness has further dented investor confidence.
The monthly derivatives expiry for March also contributed to sharp swings, as traders squared off or rolled over positions ahead of the new series.
With global risks mounting and macro pressures building, market participants expect volatility to remain elevated in the near term.
(By arrangement with livemint.com)
