Nifty 50 fell 422.40 points (1.73%) to close at 24,028.05
Sensex dropped 1,352.74 points (1.71%) to settle at 77,566.16
Broader markets performed even worse than the benchmark indices, signalling wider weakness across smaller companies.
Nifty MidCap index declined 1.97%
Nifty SmallCap index dropped 2.22%
Market volatility also remained elevated as investors reacted to global developments and rising commodity prices.
Impact on the stock market
Sector-wise performance reflected strong selling pressure across interest-rate-sensitive and economically sensitive sectors.
The Nifty PSU Bank index emerged as the worst-performing sector, falling 3.97% during the session. Banking stocks are particularly sensitive to inflation and interest-rate expectations, both of which tend to rise when crude oil prices surge.
Other financial sector indices also struggled:
Nifty Bank declined sharply
Nifty Financial Services index also ended lower
Higher crude oil prices can lead to rising inflation, which may force central banks to maintain tighter monetary policy. This reduces liquidity in financial markets and often weighs on banking stocks.
Meanwhile, Nifty IT was one of the few sectors to show resilience, closing slightly higher by 0.08% at 30,162.05. Technology stocks often behave defensively during periods of market uncertainty, which helped limit losses in the sector.
| Sector/Index | Performance |
| IT & BPM sector | 0.08% |
| Healthcare sector | -0.13% |
| Oil & Gas sector | -2.37% |
| Real estate sector | -1.24% |
| PSU Bank in India | -3.97% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Wipro | 198.75 | 1.71 |
| Reliance | 1,424.00 | 1.37 |
| Apollo Hospital | 7,779.00 | 0.71 |
| Infosys | 1,315.00 | 0.50 |
| Sun Pharma | 1,807.40 | 0.44 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| TMPV | 332.00 | –5.35 |
| UltraTechCement | 11,378.00 | -5.08 |
| Eicher Motors | 7,266.00 | -4.65 |
| Maruti Suzuki | 13,508.00 | -4.60 |
| Bajaj Auto | 9,383.00 | -4.41 |
Market aftermath: Impact on stocks
Meesho Shares Hit Lower Circuit After ₹1,500 Crore Tax Notice
Shares of e-commerce company Meesho came under intense selling pressure after the firm received an income tax demand notice worth around ₹1,500 crore.
The tax demand relates to the assessment year 2023–24 and includes applicable interest. According to the company’s exchange filing, the demand arises from adjustments and additions made by the Income Tax Department to the income reported by the company.
Following the announcement, Meesho shares hit the 10% lower circuit, trading at around ₹143.34 per share.
The company said it does not agree with the assessment order and plans to challenge it legally. It believes there are adequate factual and legal grounds to contest the demand.
Interestingly, this is not the first such notice received by the company. A similar demand for the assessment year 2022–23 was previously issued, which was stayed by the Karnataka High Court in April 2025.
Financially, the company also reported widening losses recently. For the December 2025 quarter, Meesho posted a loss of ₹490.6 crore, compared with ₹37.43 crore in the same quarter last year. Expenses surged 44% during the quarter, while revenue grew 31% to ₹3,517.5 crore.
Defence Stocks Slide On Profit Booking
Defence sector stocks also witnessed selling pressure as investors booked profits after the strong rally seen in the previous sessions.
The Nifty India Defence index fell about 3.5%, with all 18 constituent stocks trading in the red.
Major defence companies saw noticeable declines:
- Dynamatic Technologies dropped up to 6%
- Bharat Electronics fell about 3.3%
- Mazagon Dock Shipbuilders declined 4.17%
- Hindustan Aeronautics slipped around 1%
The selling came after the sector had gained more than 5% in the previous two sessions, driven by geopolitical tensions that raised expectations of increased defence spending globally.
However, with the broader market turning weak, traders chose to lock in profits from the recent rally.
Crude-Sensitive Stocks Fall Sharply
Some of the biggest losers of the day were companies heavily dependent on crude oil prices.
As global crude prices surged above $115 per barrel, stocks in sectors such as airlines, tyres, and paints faced sharp selling pressure.
Among the biggest declines:
- IndiGo (InterGlobe Aviation) plunged more than 7%
- SpiceJet dropped around 6%
- JK Tyre fell about 6.5%
- Apollo Tyres declined nearly 4%
Paint companies, which rely heavily on petrochemical inputs, also saw sharp declines:
- Asian Paints slipped more than 4%
- Berger Paints fell around 3–4%
- Kansai Nerolac declined about 3%
- Akzo Nobel India dropped around 4%
Rising crude prices increase input costs for these companies, which can squeeze profit margins if the costs cannot be fully passed on to consumers.
Market experts described the spike in oil prices as a major macroeconomic shock. If crude remains elevated for a prolonged period, it could increase inflation and slow economic growth, particularly for oil-importing countries like India.
Crude Oil
The biggest driver of market volatility remained the dramatic surge in global crude oil prices.
Oil prices jumped sharply after production cuts and geopolitical tensions disrupted global supply.
By Monday morning:
- Brent crude futures surged 24.8% to $115.68 per barrel
- WTI crude futures jumped 26.71% to $115.19 per barrel
In India’s commodity market:
- March crude futures on MCX rose nearly 15% to ₹9,617
- April crude futures climbed to ₹9,221
The surge was largely driven by production cuts across major oil-producing countries in West Asia.
Reports indicated that:
- Iraq reduced oil production by around 1.5 million barrels per day
- Kuwait cut output by roughly 300,000 barrels per day
At the same time, shipping disruptions through the Strait of Hormuz have created fears of prolonged supply shortages.
Conclusion
The Indian stock market faced another turbulent session as a sharp surge in crude oil prices triggered widespread selling across sectors.
With the Sensex falling over 1,350 points and the Nifty dropping below 24,100, investor sentiment was clearly impacted by global macroeconomic risks.
Banking stocks, crude-sensitive companies, and mid-cap stocks were among the hardest hit, while only a few sectors like IT managed to hold relatively steady.
The biggest concern for markets remains the spike in crude prices above $115 per barrel. For an oil-importing country like India, sustained high energy prices could push inflation higher and slow economic growth.
Until geopolitical tensions ease and energy supply stabilises, market volatility is likely to remain elevated, making the coming weeks critical for investors and global financial markets.
For more stock market insights, check out the StockGro blog.
