India's Nifty extends drop to 2% as Larsen, banks tumble
TL;DR
India's Nifty 50 fell 2.18% to 23,199.40 on March 13, 2026, marking a third straight decline due to geopolitical tensions, foreign fund outflows, and rising oil prices. Key losers included Larsen & Toubro and banks, with the rupee hitting a record low, exacerbating inflation concerns.
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India’s benchmark equity indices extended their decline for the third consecutive session on March 13, 2026, with the Nifty 50 falling 2.18 percent to 23,199.40 and the Sensex dropping 1.77 percent to 74,690.92 according to market data. The selloff was driven by escalating geopolitical tensions in West Asia, persistent foreign fund outflows, and rising crude oil prices, which approached USD 100 per barrel. Iranian strikes on oil tankers heightened fears of supply disruptions through the Strait of Hormuz, exacerbating inflationary pressures and import costs for oil-dependent economies like India as reported.
Sectoral indices across the National Stock Exchange traded in the red, with financial and auto stocks bearing the brunt. The Bank Nifty fell 1.75 percent as public sector banks like Punjab National Bank and Canara Bank declined 2.3–2.7 percent. Private banks, including IndusInd Bank, also faced sharp selling pressure. Larsen & Toubro, Tata Steel, and InterGlobe Aviation were among the top losers, while Power Grid Corporation and Hindustan Unilever offered limited relief.
Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth Rs 7,049.87 crore on Thursday, with cumulative outflows exceeding Rs 39,000 crore in March so far. The Indian rupee hit a record low of 92.37 against the U.S. dollar, compounding concerns over inflation and corporate margins. Analysts noted that global markets remain volatile amid the Federal Reserve’s upcoming policy meeting, with uncertainty over inflation and energy shocks likely to weigh on investor sentiment in the near term.
