Indian equities extend losing streak on Monday as crude at $116 rattles investor confidence; Japan's Nikkei nosedives 5%, South Korea's KOSPI sheds 4%

Markets Open Deep in Red

Indian benchmark indices kicked off Monday's session on a deeply negative note, extending what has now become a fifth consecutive week of losses on Dalal Street. The BSE Sensex opened with a loss of over 1,100 points, while the NSE Nifty 50 nosedived 300 points to trade around the 22,513 mark — uncomfortably close to its 52-week low.

The sell-off follows a brutal Friday session where the 30-share Sensex closed 2.25% lower at 73,583.22, while the 50-share Nifty plunged 2.09% to settle at 22,819.60, extending their losing streak to a fifth straight week.

Financials Bear the Brunt

Monday's carnage was broad-based, with the financial sector leading losses. Kotak Bank, Axis Bank, Bajaj Finance, Bharti Airtel, Eternal, and Trent were among the steepest fallers in the Sensex pack. Nifty Private Bank emerged as the biggest sectoral loser, falling 2.21%, with sharp declines recorded across lending and capital-market-linked names.

Barring media, metal, and oil and gas counters, every NSE sectoral index traded in the red. Market breadth remained firmly negative through the early session.

Oil Shock Fuels the Fear

At the heart of Monday's rout is a surging crude oil market. Brent crude has climbed 2% to $116 per barrel on the day — a staggering jump from the roughly $70-a-barrel level that prevailed before hostilities between the United States and Iran broke out on February 28. India, as one of the world's largest crude importers, remains acutely exposed to every uptick in energy prices.

Analysts at Religare Broking noted that the week was dictated by fluctuating global cues and escalating US-Iran tensions in West Asia, which sparked fears of energy supply disruptions and pushed crude oil prices into volatile territory.

Asia Bleeds Across the Board

The selloff is not confined to India. Asian markets were largely battered on Monday morning, with Tokyo taking the sharpest hit. Japan's Nikkei index was trading down 5% at 51,433, and South Korea's KOSPI slid 4% to 5,296. Hong Kong's Hang Seng bucked the regional trend, trading 1% higher at 24,713, while China's Shanghai Composite remained broadly flat at 3,922.

The regional weakness follows a rough close on Wall Street on Friday. The Dow Jones Industrial Average shed 793 points, or 1.73%, to end at 45,166. The tech-heavy Nasdaq Composite fell 2.15% to 20,948, while the S&P 500 declined 108 points, or 1.67%, closing at 6,368.

FIIs Pull Out Aggressively

Foreign institutional investors have emerged as relentless sellers in recent sessions. FIIs pulled out roughly Rs 24,596 crore from Indian equities amid rising bond yields and a strengthening US dollar. The Indian rupee has simultaneously breached the 94 mark against the dollar and is edging toward the 95 level — a record low that is further rattling sentiment.

Domestic institutional investors have been stepping in to absorb some of the selling pressure, though analysts say their support has not been enough to stabilise the market.

Diplomatic Uncertainty Prolongs Pain

Markets had briefly recovered mid-week after US President Donald Trump announced a pause in strikes on Iranian energy infrastructure, citing diplomatic progress. However, Iran has publicly dismissed US proposals, leaving the status of talks deeply unclear, and any optimism quickly faded. Trump has since extended the pause in strikes against Iran's energy infrastructure until April 6, 2026, but traders appear unconvinced that a resolution is near.

From a technical standpoint, the Nifty continues to trade below its 200-day EMA, reinforcing the view that the broader trend remains weak, with the 22,500–22,470 zone now serving as a critical make-or-break support level.

What Lies Ahead

With crude oil at elevated levels and geopolitical clarity still elusive, market experts are urging caution. Analysts suggest traders should remain agile, avoid aggressive leverage, and prioritise capital preservation, focusing on quality large-cap stocks and defensive sectors to navigate current turbulence.

The Indian stock market will also operate on a condensed schedule this week, with trading closed on Tuesday for Mahavir Jayanti and again on Friday for Good Friday. The Reserve Bank of India is widely expected to keep the repo rate unchanged at 5.25% at its April 8 policy meeting. Until the fog of the Iran conflict lifts and oil prices retreat, Dalal Street looks set for continued turbulence.