The barometer index, the S&P BSE Sensex tanked 1,635.67 points or 2.22% to 71,947.55. The Nifty 50 index plunged 488.20 points or 2.14% to 22,331.40. In two consecutive trading sessions, the Sensex declined 4.41% while the Nifty fell 4.18%.

The broader market underperformed the frontline indices. The BSE 150 MidCap Index dropped 2.51% and the BSE 250 SmallCap Index slipped 2.57%. The market breadth was weak.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 4.04% to 27.89.

The stock market will remain closed on 31 March 2026 on account of Shri Mahavir Jayanti.

Among the sectoral indices, the FMCG index (down 1.91%), the Nifty IT index (down 1.62%) and the Nifty Pharma index (down 1.48%) outperformed the Nifty 50 index.

Meanwhile, the Nifty PSU Bank index (down 4.56%), the Nifty Private Bank index (down 3.37%) and the Nifty Realty index (down 2.84%) underperformed the Nifty 50 index.

Economy:

The IIP growth rate for the month of February 2026 is 5.2% which was 4.8% in the month of January 2026. The growth rates of the three sectors, Mining, Manufacturing and Electricity for the month of February 2026 are 3.1%, 6.0% and 2.3% respectively.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.95% to 6.998 compared with the previous session close of 6.960.

In the foreign exchange market, the rupee edged higher against the US dollar. The partially convertible rupee was hovering at 94.7800 compared with its previous close of 94.8525, after hitting a record low of 95.2275 during the day.

MCX Gold futures for 5 June 2026 settlement added 0.89% to Rs 148,497.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.10% to 100.25.

The United States 10-year bond yield declined 0.88% to 4.402.

In the commodities market, Brent crude for May 2026 settlement jumped $2.68 or 2.38% to $115.25 a barrel.

Global Markets:

The US Dow Jones index futures are currently up by 146 points, signaling a positive opening for US stocks today.

Most European stocks traded higher on Monday despite investors grappling with a further escalation in the Iran war and fresh evidence of weaker economic sentiment.

Retail trade in Spain rose 2.2% YoY in February 2026, slowing from a revised 3.8% in January and below expectations. Growth eased across food and non-food segments, while retail sales dipped 0.1% MoM.

Asian markets ended lower as the Middle East war entered its fifth week, with the conflict escalating despite efforts aimed at finding a diplomatic solution.

In Japan, the Bank of Japan policymakers discussed the need for further rate hikes at their March meeting, as rising oil prices linked to the Middle East conflict add to inflation pressures. One member signaled that tightening may need to be accelerated, according to a summary of opinions released Monday.

There is a risk the BOJ might unintentionally fall behind the curve, one policymaker noted, as second-round effects and a rise in underlying inflation stemming from overseas developments are more likely to emerge.

Meanwhile, Yemen’s Houthi movement said Saturday it had fired missiles at Israel, marking its first direct involvement in the U.S.- and Israeli-led war against Iran.

In a post on a social media platform, Houthi spokesperson Yahya Saree has reportedly said the group launched a barrage of ballistic missiles at what it described as sensitive Israeli military sites, in support of Iran and allied Hezbollah forces in Lebanon.

The strike signals a further escalation in a conflict that began with U.S. and Israeli airstrikes on Iranian targets on Feb. 28.

Last Friday, the Dow Jones Industrial Average tumbled and fell into correction territory. The 30-stock Dow fell 793.47 points, or 1.73%, to close at 45,166.64. The S&P 500 lost 1.67% and ended the session at a seven-month low of 6,368.85. The Nasdaq Composite dropped 2.15% and settled at 20,948.36.