Although the benchmark indices opened lower, they traded negatively throughout the session and ultimately closed red.
Indian equity benchmarks, Sensex and Nifty50 sharply lower, despite paring some losses from the intraday lows as US-Iran war tensions weighed on risk-on sentiment. Auto, oil, and gas stocks weighed the most.
Please note markets will remain closed tomorrow, 3 March 2026, on account of Holi.
At the closing bell, the BSE Sensex closed lower by 1,048 points (down 1.3%)
Meanwhile, the NSE Nifty closed 312 points lower (down 1.2%)
Bharti Airtel, Sun Pharma, and ITC are among the top gainers today.
Adani Ports, Asian Paints, and Maruti Suzuki, on the other hand, were among the top losers today.
The GIFT Nifty was trading at 24,992, lower by 292 points at the time of writing.
The BSE MidCap index ended 1.5% lower, and the BSE SmallCap index ended 2.1% lower.
Sectoral indices are trading negatively today, with stocks in the services sector and the auto sector witnessing selling pressure.
The rupee is trading at Rs 91.4 against the US$.
Gold prices for the latest contract on MCX are trading 4.2% higher at Rs 168,923 per gram.
Meanwhile, silver prices were trading 5% higher at 2,96,600 per 1 kg.
Five reasons why Indian share markets are falling:
#1 Crude Oil Spikes
Oil prices have risen to multi-month highs due to fears of supply disruptions in the Middle East, especially near the Strait of Hormuz. Any blockage in this key shipping route could push prices even higher. For India, which imports around 85% of its crude, higher prices increase the import bill, widen the current account deficit, and add inflationary pressure.
#2 Oil-Sensitive Sectors
When crude oil rises, sectors like paints and aviation often come under pressure. Higher raw material costs hurt paint companies, while rising fuel costs impact airlines. This makes investors cautious about stocks in these industries during crude spikes.
#3 Rupee Weakens
The Indian rupee fell past 91 per US dollar, making imports like crude oil more expensive. A weaker rupee adds to inflation and increases the cost of foreign purchases. This can put additional pressure on the overall economy and markets.
#4 Volatility Surges
The India VIX, a measure of market fear, jumped nearly 22%, showing traders expect large price swings in the coming days. A rising VIX indicates nervousness and higher demand for protection against losses. This signals uncertainty and caution among investors.
#5 All Sectors Fall
The market decline was broad-based, with auto, financial, IT, realty, and consumer durable stocks all falling sharply. Even oil and gas stocks fell due to overall weakness. Paint companies like Asian Paints, Berger Paints, and Kansai Nerolac also saw selling pressure from higher crude costs, while IT stocks dropped further amid global uncertainty.
GAIL Boosts Wind Power Capacity
State-owned gas company GAIL India Ltd said that its board has approved an investment of Rs 17.36 billion (bn) to set up a new 178.2 MW wind power project in Maharashtra.
The project will be developed over 24 months after the Lump Sum Turnkey (LSTK) contract is awarded. At present, GAIL operates 117.95 MW of wind power capacity, which is running at full capacity. The new project will significantly increase its renewable energy capacity.
The total investment of Rs 17.36 bn will be funded through a mix of debt and equity. The company said the additional capacity will support its business growth. After this project, GAIL's total renewable energy capacity will rise above its current 145 MW portfolio, which includes 118 MW of wind and 27 MW of solar power projects located in Gujarat, Karnataka, Tamil Nadu, Rajasthan, Uttar Pradesh, and Madhya Pradesh.
NCC Gets Relief from Court
Infrastructure company NCC Ltd said on Friday (February 27) that the Telangana High Court has suspended a debarment order issued against it by the National Highways Authority of India.
NCC also said it received a new order worth Rs 3.26 bn in February 2026. This order is related to the company's Water Division and was received in the normal course of business. The company clarified that it is not an internal order.
Comments
Log in or sign up to join the conversation.