Indian equity benchmarks ended near day’s low points on Friday, snapping a two-day rally, amid escalating geopolitical tensions surrounding the US-Iran conflict. Markets made a gap-down opening and remained under sharp selling pressure, driven by losses in PSU bank and auto stocks, alongside rising crude prices and persistent foreign outflows.

Some of the important factors in trade:

FIIs remain net sellers: Some cautiousness came due to continued foreign fund outflows. On March 25, Foreign Institutional Investors (FIIs) were net sellers of securities worth Rs 1,805.37 crore. 

Ongoing West Asia conflict to pose challenge to India's fiscal position by FY27: Traders were concerned as ratings agency ICRA said that a surge in global crude oil and natural gas prices amid the West Asia conflict is likely to complicate India's fiscal position in FY2027, potentially increasing subsidy burdens and pressuring revenues. 

West Asia conflict to drag Asia-Pacific growth by 1.3%: Some concern also came as research by the Asian Development Bank (ADB) stated that the West Asia conflict could lower economic growth in Asia Pacific region by up to 1.3 percentage points over 2026-2027 and raise inflation by 3.2 percentage points if energy market disruptions last more than a year.

On the global front: European equity markets traded in red amid fears that a prolonged conflict in the Middle East may fuel inflation and dent economic growth. Asian markets ended mixed, as traders remain concerned about the economic impact of the expanding conflict in the Middle East.

The BSE Sensex ended at 73583.22, down by 1690.23 points or 2.25% after trading in a range of 73534.41 and 74904.91. There were 3 stocks advancing against 27 stocks declining on the index. (Provisional)

The top losing sectoral indices on the BSE were Realty down by 3.10%, Auto down by 2.79%, Bankex down by 2.70%, Consumer Discretionary down by 2.52% and Consumer Durables down by 2.50%, while there were no gaining sectoral indices on the BSE. (Provisional)

The few gainers on the Sensex were Bharti Airtel up by 0.64%, TCS up by 0.45% and Power Grid up by 0.24%. On the flip side, Reliance Industries down by 4.58%, Interglobe Aviation down by 4.29%, Bajaj Finance down by 4.02%, Eternal down by 4.00% and SBI down by 3.92% were the top losers. (Provisional)

Meanwhile, amid ongoing conflict between US-Israel and Iran, the Organisation for Economic Cooperation and Development (OECD) in its interim Economic Outlook report has projected that India's Gross Domestic Product (GDP) to grow at 7.6 per cent in the current fiscal year 2025-26 (FY26). It said the decline in (US) tariffs should support growth in India, though gas rationing will disrupt some production activities and fiscal support is expected to fade, with growth easing from 7.6 per cent in FY26 to 6.1 per cent in FY27 and 6.4 per cent in FY28.

It noted that the evolving conflict in the Middle East has ‘human and economic costs’ for the countries directly involved, and will test the resilience of the global economy. It said a halt in shipments through the Strait of Hormuz and the closure or damage of energy infrastructure has generated a surge in energy prices and disrupted the global supply of energy and other important commodities, such as fertilisers. It said the fading deflationary impact of past food and energy price-reducing shocks will be exacerbated by the recent surge in global energy prices, which will push inflation up from 2 per cent in FY 2025-26 to 5.1 per cent and 4.1 per cent in FY 2026-27 and 2027-28, respectively. It highlighted that amongst the emerging-market economies, India is projected to raise policy rates temporarily in the second quarter of 2026 to help offset stronger inflationary pressures.

As per the report, US bilateral tariff rates have declined following the US Supreme Court ruling against the tariffs imposed under the International Emergency Economic Powers Act. There are particularly large reductions for several emerging-market economies, including India. Nonetheless, the overall US effective tariff rate remains well above that prevailing prior to 2025. The report projected global GDP growth to ease to 2.9 per cent in 2026 before edging up to 3 per cent in 2027.

The CNX Nifty ended at 22819.60, down by 486.85 points or 2.09% after trading in a range of 22804.55 and 23186.10. There were 6 stocks advancing against 44 stocks declining on the index. (Provisional)

The top gainers on Nifty were ONGC up by 4.35%, Wipro up by 1.35%, TCS up by 0.52%, Bharti Airtel up by 0.49% and Coal India up by 0.30%. On the flip side, Shriram Finance down by 5.46%, Tata Motors Passenger down by 4.64%, Reliance Industries down by 4.60%, Interglobe Aviation down by 4.55% and Bajaj Finance down by 4.41% were the top losers. (Provisional)

European markets were trading lower; Germany’s DAX lost 255.47 points or 1.13% to 22,357.50, France’s CAC fell 53.11 points or 0.68% to 7,716.20 and UK’s FTSE 100 decreased 47.47 points or 0.48% to 9,924.70.

Asian markets ended mixed on Friday amid uncertainty around the US-Iran negotiations to potentially end the West Asia conflict. US President Donald Trump has delayed planned strikes on Iranian energy infrastructure, extending his deadline for Tehran to reopen the Strait of Hormuz to April 6, while claiming negotiations are ‘going very well’. However, reports suggest Iran didn't request this extension, challenging Trump's statement and adding fresh worries to the ongoing West Asia conflict. Japanese shares declined tracking steep declines on Wall Street overnight. Meanwhile, Chinese shares gained after data showed a 15.2% year-on-year jump in industrial profits for the January-February period.