Indian stock markets continued their downward trend for the third consecutive session on Friday, with the Nifty50 and BSE Sensex declining by about 1 per cent each. The sell-off was driven by negative global cues, escalating geopolitical tensions between the United States and Iran, and weak sentiment in technology stocks following Infosys' disappointing quarterly results.
Market Decline Erases Nearly Rs 6 Lakh Crore
The broader market showed relative resilience, but the sell-off wiped out nearly Rs 6 lakh crore in investor wealth. The total market capitalisation of all companies listed on the BSE fell to around Rs 460 lakh crore, according to an ET report.
Key Reasons Behind the Market Crash
US-Iran Tensions Escalate
A key driver of the downturn was the worsening standoff between Iran and the United States. Hopes for a diplomatic resolution faded after the US maintained its blockade around the Strait of Hormuz. Iran reportedly deployed swarms of small, fast vessels to seize at least two container ships near the strategic waterway, raising doubts about claims that Tehran's naval capabilities had been neutralised. US President Donald Trump acknowledged that while Iran's conventional fleet had been weakened, its fast-attack boats remained a concern. He warned that any such vessels approaching the US blockade would be dealt with immediately.
Oil Prices Continue to Climb
Crude oil prices moved higher as concerns intensified over potential supply disruptions through the Strait of Hormuz. Brent crude traded close to $106 a barrel, while West Texas Intermediate hovered around $96 per barrel. After briefly slipping below the $100 mark earlier this month, crude regained upward momentum and crossed that psychologically significant threshold. Oil had first moved above $100 per barrel in March following the outbreak of hostilities involving Iran, the United States, and Israel.
Rupee Under Pressure
The Indian rupee weakened further on Friday, declining by 24 paise to 94.25 against the US dollar. The domestic currency has fallen every day this week, with no immediate signs of stabilisation.
Foreign Investors Continue Selling
Foreign institutional investors remained net sellers in Indian equities on Thursday, offloading shares worth Rs 3,255 crore, according to provisional data from the National Stock Exchange of India.
Global Markets Deliver Mixed Picture
Equity markets traded on an uneven note. South Korea's KOSPI fell by about 1 per cent, while Japan's Nikkei 225 advanced roughly 0.4 per cent. In China, the Shanghai Composite Index declined 0.6 per cent, and Hong Kong's Hang Seng Index also traded lower, though losses remained modest. Overnight, the NASDAQ Composite led the decline on Wall Street, ending nearly 0.9 per cent lower. Futures tied to the Dow Jones Industrial Average were also in negative territory, suggesting a cautious start for US markets later in the day.
Bond Yields Move Higher
Renewed market concerns pushed bond yields upward. The yield on the benchmark US 10-year Treasury note climbed to 4.33 per cent. The 30-year Treasury yield rose to 4.92 per cent, while the yield on the 2-year note—often viewed as a key indicator of expectations around future Federal Reserve interest rate decisions—jumped to 3.84 per cent.
Infosys Earnings Weigh on Sentiment
Investor sentiment on Dalal Street was also affected by a disappointing market reaction to Infosys' latest quarterly results. For the quarter ended March 31, 2026, the company posted a consolidated net profit of Rs 8,501 crore, marking a 21 per cent increase from Rs 7,033 crore in the same period a year earlier. Despite the rise in profit, the results fell short of market expectations. Following the earnings announcement, brokerages including Jefferies and Morgan Stanley lowered their target prices for the stock, citing weaker-than-anticipated performance and a subdued revenue growth outlook.
Technology Stocks Bear the Brunt
Technology stocks bore the brunt of the selling. Shares of Infosys, HCLTech, Tech Mahindra, and Tata Consultancy Services fell between 2 per cent and 4 per cent after Infosys' fourth-quarter results failed to meet market expectations.
(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of the publication.)
