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Key gauges end lower amid rising global geopolitical tensions
Mar-06-2026

Indian equity benchmarks tumbled over a per cent on Friday after a day's breather as the conflict in the Middle East entered its seventh day, driving crude oil prices higher. Weakness in the US equities, subdued trend in European markets and relentless foreign fund outflows also dampened sentiments. 

Some of the important factors in trade: 

West Asia conflict likely to add pressure on Indian rupee, inflation amid energy supply risks: Moody's Ratings said India could face pressure on the rupee, higher inflation and a widening current account deficit if the escalating Middle East conflict spikes energy prices and disrupts supplies, given its heavy dependence on crude and LNG imports from the region. 

US to work closely with India to meet energy needs amid conflict in West Asia: US Deputy Secretary of State Christopher Landau has said that the United States (US) will work closely with India to ensure the country’s energy requirements are met in both the short and long term, amid fears over disruptions in crude oil flows following ongoing conflict in West Asia. 

No significant upside to $63/Bbl Brent price estimates for 2026: Fitch Ratings said the $63/bbl estimation for average Brent crude price for 2026 is unlikely to see any significant upside as the Strait of Hormuz closure would be only temporary and global oil market oversupply should limit oil price rises. 

Sugar stocks remain in watch: Trade body AISTA said India's sugar output for the 2025-26 season has been revised down 4.4 per cent to 28.3 million tonnes from an earlier first estimate of 29.6 million tonnes, citing lower yields in key producing states due to adverse weather. 

Global front: European markets were trading mostly in red as Iran's retaliation in West Asia spread to Bahrain and Azerbaijan. Asian markets settled mostly higher despite concern about the economic impact of the expanding conflict in the Middle East, with crude oil prices spiking to above $81 a barrel amid ongoing supply disruption.

Finally, the BSE Sensex fell 1097.00 points or 1.37% to 78,918.90 and the CNX Nifty was down by 315.45 points or 1.27% to 24,450.45.         

The BSE Sensex touched high and low of 79,753.03 and 78,812.18 respectively. There were 6 stocks advancing against 24 stocks declining on the index.

The few gaining sectoral indices on the BSE were Capital Goods up by 1.30%, Power up by 0.44% and Industrials up by 0.06%, while Bankex down by 2.14%, Realty down by 2.03%, Auto down by 1.10%, Consumer Discretionay down by 1.04% and Telecom down by 0.67% were the top losing indices on BSE.

The top gainers on the Sensex were Bharat Electronics up by 1.82%, Reliance Industries up by 1.11%, Sun Pharma up by 0.68%, NTPC up by 0.61% and Infosys up by 0.26%. On the flip side, Eternal down by 3.39%, ICICI Bank down by 3.39%, Axis Bank down by 2.58%, Ultratech Cement down by 2.56% and HDFC Bank down by 2.39% were the top losers.

Meanwhile, raising concerns over the impact of the ongoing crisis between Iran and US-Israel, Moody’s Ratings in a note on oil supply shock in prolonged West Asia conflict has said that the escalating West Asia conflict could spike energy prices and disrupt supplies, adding pressure on India’s rupee, inflation and current account deficit, as the country is highly dependent on crude oil and LNG imports from the region. The country imports about 46 per cent of its oil and natural gas requirements from West Asia. Supplies from the region have been disrupted as the widening West Asia conflict has blocked the Strait of Hormuz, a key conduit for crude oil and LNG exports from the region.

Moody's said the West Asia conflict poses substantial risk to the global economy, particularly if it causes prolonged disruption in global energy markets. The Strait of Hormuz, a vital shipping route for oil and Liquefied Natural Gas (LNG), remains a critical choke point. It said although infrastructure damage so far has been limited and global inventories offer short-term buffers, shipping through the strait has largely stalled and some regional ports have suspended operations, disrupting trade in oil and LNG. 

It added ‘But a prolonged disruption in navigation through the Strait of Hormuz, beyond our baseline of a few weeks, would likely trigger sustained supply shortages; prices averaging higher than $100 per barrel for Brent, the main international benchmark crude; higher inflation; tighter financial conditions; and slower global growth’. It also said energy-importing regions in Asia and Europe would sustain the most immediate stress from $100-plus Brent crude. It said ‘a prolonged blockage would restrict significant global supply and drive energy prices higher’.

CNX Nifty touched high and low of 24,700.90 and 24,415.75 respectively. There were 13 stocks advancing against 37 stocks declining on the index. 

The top gainers on Nifty were Bharat Electronics up by 2.52%, ONGC up by 1.28%, Reliance Industries up by 1.27%, NTPC up by 0.82% and Hindalco Industries up by 0.59%. On the flip side, ICICI Bank down by 3.13%, Eternal down by 2.96%, Shriram Finance down by 2.77%, Axis Bank down by 2.54% and State Bank of India down by 2.54% were the top losers.

European markets were trading mostly in red; France’s CAC fell 15 points or 0.19% to 8,030.80 and Germany’s DAX lost 2.75 points or 0.01% to 23,813.00, while UK’s FTSE 100 increased 5.63 points or 0.05% to 10,419.57.

Asian markets settled mostly higher on Friday after China's strategic commitment to deepen tech investment. Despite setting the lower GDP growth target of 4.5-5% for 2026, China pledged substantial investment in high-tech sectors, benefiting artificial intelligence, chipmakers, and biotech firms. Chinese shares gained after reports emerged that China’s government has reportedly ordered a suspension of new fuel export contracts to ensure domestic supply and demand balance amidst heightened inflation risks and market volatility. Hong Kong shares rallied as technology shares rebounded from a week-long selloff following the Middle East war. Japan’s Nikkei rose, supported by expectations of a less-hawkish Bank of Japan. Seoul shares ended almost flat with positive bias after data showed South Korea's annual inflation rate held steady at 2% in February 2026, unchanged from January and slightly below market expectations of 2.1%. However, Jakarta shares dipped tracking Wall Street’s fall overnight as attacks in the Middle East spread to more countries.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,124.19

15.63

0.38

Hang Seng

25,757.29

435.95

1.72

Jakarta Composite

7,585.69

-124.85

-1.65

KLSE Composite

1,718.06

4.86

0.28

Nikkei 225

55,620.84

342.78

0.62

Straits Times

4,848.25

1.69

0.03

KOSPI Composite

5,584.87

0.97

0.02

Taiwan Weighted

33,599.54

-73.40

-0.22
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