Indian equity markets remained closed on Thursday on account of Bakrid, while commodity (MCX) trading will resume later in the evening, market officials confirmed. The holiday came as Asian stock indices slid sharply and crude oil prices jumped amid renewed tensions in the Middle East, denting investor sentiment ahead of the weekend.

Markets closed for Bakrid

The BSE and NSE did not operate on Thursday because of the Bakrid public holiday, a routine annual closure. Commodity exchanges, including MCX, were inactive until late afternoon; trading is scheduled to restart at 5:00 pm IST, exchange notices showed. Stock broking desks said most overseas markets were open, leaving Indian investors to track global cues remotely.

Asian markets slide

Asian equities suffered notable declines on Thursday. South Korea’s KOSPI dropped about 3.1% in early trade, while Hong Kong’s Hang Seng fell roughly 2.3% and Japan’s Nikkei eased around 1.2%, exchange feeds indicated. Market strategists linked the weakness to a sharp rise in crude oil and lingering geopolitical worries after fresh US-Iran tensions.

US markets firmed; mixed signals

Wall Street closed modestly higher on Wednesday, with the Dow Jones adding 0.36% and the Nasdaq nearly flat, data showed. But that limited uplift failed to translate into Asian gains overnight. “US markets were steady, but the spike in oil and heightened risk aversion in Asia outweighed the follow-through,” a Hong Kong-based strategist said on condition of anonymity.

FIIs net sellers

Data compiled by exchange sources showed continued foreign institutional investor (FII/FPI) outflows. Over the past 30 days, FIIs sold equities worth about ₹45,374 crore, while domestic institutional investors (DIIs) remained net buyers, purchasing roughly ₹71,654 crore over the same period. In the latest seven-day window, FIIs were net sellers to the tune of around ₹7,069 crore, compared with DII buys of ₹15,043 crore.

Domestic indices fell earlier

On Wednesday, when markets were open, the BSE Sensex closed down 142 points at 75,868 and the Nifty 50 slipped 7 points to finish at 23,907. Banking stocks underperformed, brokers said, reflecting profit-taking after a recent rally and sensitivity to macro and liquidity expectations.

Crude surge fuels concerns

A key immediate trigger was a near 4% rise in Brent crude to about $98 per barrel on Thursday, traders said, citing renewed US-Iran tensions. Higher oil directly affects inflation and input costs globally and is particularly sensitive for India, which imports an estimated 80–85% of its crude needs. “When oil spikes, the trade deficit and inflation outlook worsen, the rupee can weaken, and corporate margins—especially for fuel-intensive sectors—come under pressure,” an equity economist noted.

Why oil hits Indian markets

Analysts explained that rising crude increases import bills, pressuring the rupee and raising costs for manufacturers, transporters and airlines. That squeezes corporate profits and can erode equity valuations. Retail inflation risks could also prompt tighter monetary stance expectations, adding to investor caution.

Ground-level cues

On the trading floors and at brokerage firms in Mumbai’s Dalal Street, traders spent the holiday monitoring late-session commodity trades and global headlines. “We were more focused on oil and flows from FIIs. With markets closed, clients expect a quiet holiday but want updates before the close in the US,” said a Mumbai broker who declined to be named.

What to watch next

Market participants will watch MCX’s evening session for any volatility in energy contracts and refine positions ahead of Friday’s truncated session. The rupee’s movement versus the dollar, upcoming US economic data, and any further geopolitical developments will be key near-term drivers. Investors will also track central bank commentary and domestic macro prints that could influence DII behavior.

For now, the Bakrid holiday gave local investors a pause to reassess exposures while global factors—especially a resurgent crude oil price—kept risk sentiment subdued. If oil maintains elevated levels into next week, strategists warn, Indian markets may face renewed pressure once trading resumes fully.

Dalal Street Cheers Modi-Trump Call
Sensex roars 1,300 points; Nifty jumps nearly 400 on Hormuz Strait, trade talks

Indian benchmark indices surged sharply in early trade on Wednesday, propelled by a key phone conversation between Prime Minister Narendra Modi and US President Donald Trump. Sensex rocketed 1,300 points at open, while Nifty climbed almost 400 points.

Markets reacted to the leaders' focus on keeping the Strait of Hormuz open amid Iran tensions and hints of an impending India-US trade deal.

Leaders Discuss Key Issues

Prime Minister Modi and President Trump spoke for 40 minutes on Tuesday evening. Sources indicated the call covered the Iran conflict and stressed uninterrupted navigation through the Strait of Hormuz.

PM Modi shared details on social media, highlighting the productive exchange. Trading opened buoyant as investors cheered the positive tone.

Sensex Opens Strong

The BSE Sensex leaped to around 25,000 levels in initial deals, up 1,300 points from Tuesday's close. Major gainers included IndiGo, HCL Tech, Infosys, UltraTech Cement, Bajaj Finance and Larsen & Toubro.

Nifty mirrored the rally, gaining nearly 400 points to hover above 24,200. Broad-based buying swept across counters.

Nifty IT Leads Gains

Sectoral indices shone brightly on the NSE. Nifty IT topped with a 2.93% jump, followed by PSU Bank, Metal and Realty sectors.

All major indices advanced at open. The rally erased Monday's losses, when Sensex had shed 702 points and Nifty 208 points to end at 23,842.65.

Ambassador Hints Trade Deal

US Ambassador to India Sergio Gor termed the Modi-Trump call "a very positive and productive" discussion. He added, "Stay tuned," signaling possible announcements on the long-awaited India-US trade deal soon.

Officials confirmed the envoy's remarks aligned with ongoing negotiations. Markets interpreted this as a bullish trigger.

Global Markets Align

Asian bourses advanced in tandem. South Korea's Kospi rose 3.14% to 6,155, Japan's Nikkei gained 0.49% at 58,163, and Hong Kong's Hang Seng climbed 0.82% to 26,094.

US indices closed higher overnight, with Nasdaq up 1.96%, Dow Jones 0.66% and S&P 500 1.18%. Positive overseas cues fueled Dalal Street's momentum.

Impact on Investors

The surge boosted investor sentiment amid geopolitical worries. IT and banking stocks drew heavy buying as trade deal hopes resurfaced. Analysts see this lifting foreign inflows into Indian equities.

Retail and institutional players piled in early, pushing turnover higher. Broader economy stands to gain from stable trade ties.

What Lies Ahead

Traders eye follow-up developments on the trade pact and Hormuz situation. Any formal deal announcement could sustain the rally, per market experts.

HDFC Bank Chairman Resigns Citing Values and Ethics Concerns

Atanu Chakraborty steps down as part-time chairman of India's largest private sector lender, triggering sharp stock sell-off and renewed scrutiny over governance and post-merger challenges.

HDFC Bank, India's largest private sector lender, faced fresh turbulence after its part-time chairman and independent director Atanu Chakraborty resigned on March 18, 2026, citing differences over certain practices observed over the past two years that were not in line with his personal values and ethics. The development sent shock waves through Dalal Street, with the bank's shares plunging as much as 8.7 per cent the next day and erasing over Rs 1 lakh crore in market capitalisation in a single session.

The resignation letter, dated March 17 and addressed to the board, highlighted a fundamental incongruence between observed “happenings and practices” at the bank and Chakraborty's ethical standards. He offered no specific details or examples, a vagueness that only deepened market unease. Keki Mistry, former HDFC Ltd CEO and current board member, was swiftly appointed as interim part-time chairman for three months, with Reserve Bank of India approval.

Leadership Transition Sparks Volatility

Shares of HDFC Bank tumbled sharply on March 19, hitting a 52-week low near Rs 750 levels before partial recovery. The stock's heavy weight in the Nifty 50 dragged the broader market lower by over 3 per cent on that day, marking one of the worst sessions since mid-2024. By late March, the scrip had slipped further amid lingering uncertainty, reflecting investor discomfort over potential governance signals from an independent director's abrupt exit.

The former chairman, a retired IAS officer and ex-finance secretary, later clarified in media interactions that his letter did not point to any financial wrongdoing or governance lapses. He described the differences as more ideological and value-based rather than instances of misconduct. However, the initial ambiguity fuelled speculation and a trust deficit in a sector where confidence remains paramount.

Background on the Resignation

Chakraborty had served as part-time chairman following the landmark merger of HDFC Ltd with HDFC Bank in July 2023. Sources indicated underlying tensions, including possible disagreements over management approaches and extension of the CEO's tenure. Reports pointed to differences with CEO Sashidhar Jagdishan, though both the bank and RBI have maintained there are no material concerns regarding governance or financial health. The regulator described the lender as well-capitalised and stable.

HDFC Bank has engaged external law firms to review the circumstances surrounding the resignation, signalling efforts to address investor concerns transparently.

AT1 Bonds Controversy Resurfaces

The resignation has revived questions around an earlier episode involving the bank's Dubai operations. Reports indicate that HDFC Bank's DIFC branch faced regulatory scrutiny from the Dubai Financial Services Authority over client onboarding and advisory practices. Allegations surfaced that some NRI clients were sold high-risk Credit Suisse Additional Tier-1 (AT1) perpetual bonds as relatively safe, high-yield instruments around 2021, before the Swiss bank's 2023 collapse led to a write-off of such bonds.

Following an internal probe, the bank reportedly took disciplinary action against several executives, including terminations and penalties for lapses in client due diligence and disclosure. Chakraborty reportedly viewed the bank's handling of accountability in such matters as falling short of expected ethical standards, contributing to his decision. The bank has maintained these were technical or compliance gaps rather than systemic fraud and has cooperated with regulators.

Post-Merger Integration Pressures

The 2023 merger integrated HDFC Ltd's large home loan portfolio into the bank, bringing scale but also operational challenges. HDFC Bank's net interest margin (NIM) compressed from pre-merger levels above 4 per cent to around 3.35 per cent in recent quarters. This decline stems from a shift in asset mix towards lower-yielding mortgages, slower growth in low-cost current and savings account (CASA) deposits, and higher reliance on costlier term deposits and borrowings to fund the expanded loan book.

The loan-to-deposit ratio, which spiked post-merger, has moderated towards 98-99 per cent but remains above the bank's comfort zone. Management has outlined a gradual glide path to bring it down further while aiming for system-aligned credit growth in FY26 and outperformance thereafter. Deposit mobilisation through branch expansion and cross-selling remains a focus area.

Market and Stakeholder Impact

The episode has wiped out significant investor wealth and raised broader questions about the evolving role and influence of independent directors in Indian boardrooms. Analysts note that while HDFC Bank maintains strong asset quality and capital adequacy, the leadership transition comes at a time when the sector grapples with deposit competition and margin pressures.

The RBI and the bank have reiterated that there are no underlying solvency or major governance issues. However, the market's sharp reaction underscores how even perceived ethical or cultural misalignment at the top can erode confidence in India's most valued private lender.

Outlook and Next Steps

HDFC Bank is scheduled to consider debt fundraising and announce Q4 results in mid-April. The board, now under interim chairman Keki Mistry, is expected to focus on stabilising sentiment, clarifying any review findings, and accelerating deposit franchise strengthening.

For India's banking sector, the episode serves as a reminder of the delicate balance between aggressive growth post-merger and maintaining robust governance standards. Investors will watch closely for signs of renewed stability in the coming quarters as the bank navigates this phase of transition.

The Indian stock markets witnessed a sharp sell-off on Monday, March 23, 2026, as geopolitical tensions escalated following US President Donald Trump's 48-hour ultimatum to Iran over the Strait of Hormuz. The BSE Sensex plunged over 1,800 points to close around 72,757, while the NSE Nifty shed more than 550 points to settle near 22,824, marking one of the steepest single-day declines in recent months.

Sensex Crashes 1,800 Points

Dalal Street opened in deep red amid heavy selling pressure across sectors. The benchmark indices erased gains from Friday's session and extended losses through the day, wiping out significant investor wealth.

Trump's Ultimatum Triggers Panic

The primary trigger was President Trump's stern warning issued late Saturday, demanding Iran fully reopen the Strait of Hormuz within 48 hours or face US strikes on its power plants. Tehran responded defiantly, vowing to target regional energy infrastructure if attacked. The ultimatum heightened fears of further disruption in the key oil shipping route, already strained by the ongoing US-Israel war with Iran now in its fourth week.

Crude Oil Surges Above $112

Brent crude climbed over 1% to trade above $112 per barrel, reflecting supply concerns. The Indian basket price hovered near elevated levels, adding pressure on import-dependent India. Rising energy costs fuelled inflation worries and impacted oil-sensitive sectors.

Sectoral Losses Widespread

All major NSE sectoral indices ended lower. Metals and PSU banks bore the brunt, while broader selling hit IT, financials, and consumer stocks. Midcap and smallcap indices also faced sharp corrections.

Global Cues Turn Negative

Asian markets mirrored the caution, with Japan's Nikkei down around 3%, Hong Kong's Hang Seng falling over 3%, and China's Shanghai Composite declining nearly 2.3%. South Korea's KOSPI showed mixed movement but overall sentiment remained weak. US markets had closed lower on Friday, with Dow Jones down nearly 1%, Nasdaq off 2%, and S&P 500 slipping 1.5%.

FIIs Continue Outflows

Foreign institutional investors maintained selling momentum, offloading shares worth over ₹5,500 crore on Friday. Cumulative March outflows stood at nearly ₹87,000 crore. Domestic institutions provided some counterbalance with purchases exceeding ₹1 lakh crore this month.

Background of Recent Volatility

Markets had rebounded modestly on Friday, with Sensex up 325 points to 74,532 and Nifty gaining 112 points to 23,114, buoyed by temporary relief in oil prices and bargain hunting. However, the weekend escalation reversed that trend swiftly.

Official and Market Reactions

Analysts pointed to the combination of geopolitical risks, elevated crude, and FII exits as key drivers. Market participants remained on edge as the 48-hour deadline approached, with potential for further volatility depending on developments in the Middle East.

Impact on Economy and Investors

The sharp decline raised concerns over rupee stability, corporate earnings, and broader economic growth. Higher oil prices could widen the current account deficit and stoke inflation. Retail investors faced significant erosion in portfolio values amid the uncertainty.

What Lies Ahead

Traders will closely monitor any response to the ultimatum and military developments. A de-escalation could trigger a rebound, but prolonged tensions risk sustained pressure on equities. Support levels near 22,500 for Nifty and 72,000 for Sensex will be tested in the coming sessions.

Black Monday on Dalal Street underscores how global events, particularly energy supply risks, continue to dictate sentiment in India's equity markets.

Indian Stock Market Update: Mixed Trend on Dalal Street

The Indian stock market opened with muted momentum on Monday as traders remained cautious amid thin holiday season volumes. The Sensex today traded 50 points higher at 85,100, while the Nifty 50 edged up by just 10 points to 26,050, reflecting a subdued tone on Dalal Street.

A strong rally in metal shares was among the few bright spots, but overall participation remained weak as investors awaited fresh triggers ahead of the New Year.

Sector Watch: Metals Shine, Broader Market Cools

Across sectoral indices on the NSE, the trading pattern was largely mixed.

• Gains were visible in metal, IT, auto, and select chemical stocks.
  
  

• However, banking, pharma, and FMCG counters witnessed mild profit-booking.
  
  

Market experts attribute the metal rally to firm global commodity prices and renewed demand sentiment from China and other Asian economies.

“The metal index continues to outperform due to steady global demand recovery. However, overall market activity is muted because of year-end holidays,” said R. Sharma, a senior market analyst at an Indian brokerage.

Global Cues Remain Mixed

Asian markets offered no clear direction to domestic investors. South Korea’s KOSPI rose 1.52% to 4,192, while Japan’s Nikkei slipped 0.39% to 50,550.
Meanwhile, Hong Kong’s Hang Seng added 0.44% and Shanghai Composite climbed 0.31%, indicating selective buying across regional exchanges.

Overnight in the US, major indices closed marginally lower. The Dow Jones Industrial Average fell 0.041%, Nasdaq Composite declined 0.086%, and the S&P 500 slipped 0.030%, as traders booked profits at record highs.

FII and DII Activity: Domestic Buyers Offer Support

According to data from December 26, Foreign Institutional Investors (FIIs) offloaded shares worth ₹317.56 crore, continuing their monthly selling streak.
In contrast, Domestic Institutional Investors (DIIs) emerged as net buyers with purchases worth ₹1,772.56 crore, offering solid support to the markets.

So far this month, FIIs have sold equities worth ₹24,148.33 crore, while DIIs have accumulated stocks worth ₹64,056.61 crore—underscoring the strong domestic buying momentum buffering against foreign outflows.

Recent Trend: Sensex Ends Last Week Lower

On Friday, December 26, the Sensex fell 367 points to close at 85,041, and the Nifty dropped 100 points, ending at 26,042. Analysts believe the current consolidation phase may continue in the short term until trading volumes normalize in January 2026.

Outlook: Range-Bound Ahead of New Year

With global markets entering a low-activity phase and investors preferring to hold cash ahead of year-end, experts expect the Indian stock market update to remain modest in the coming sessions.

Focus will soon shift to quarterly earnings and the upcoming Union Budget 2026, which may set the tone for the markets in the new year.