Middle East Tensions Lead to Sharp Correction

9 Mar 2026 , 03:18 PM

Weekly Market Wrap – Broad-Based Correction on Middle East Tensions

Last week, the NIFTY 50 fell by 2.89%. This was its second consecutive weekly decline amid broad-based selling across sectors. Banking stocks were among the biggest drags, with NIFTY BANK declining sharply by 4.54%. Realty stocks also corrected steeply, as NIFTY REALTY dropped 4.95%, marking one of the sharpest sectoral declines of the week.

Weakness was also visible across most other sectors. NIFTY IT fell another 1.52% and extended its prolonged losing streak. NIFTY PHARMA was an outlier and remained flat for the week.

NIFTY 50 – Sharp Weekly Decline Amid Broad Market Weakness

Weekly Performance: -2.9%

Date	Open	High	Low	Close
2026-02-27	25459.8	25476.4	25141.3	25178.7
2026-03-02	24659.2	24989.3	24603.5	24865.7
2026-03-04	24388.8	24602.5	24305.4	24480.5
2026-03-05	24616.0	24854.2	24529.4	24765.9
2026-03-06	24656.4	24700.9	24415.8	24450.5

Source: NSE

Figure: Recent performance

Source: NSE

The NIFTY 50 declined 2.89% in the week ended 6 March 2026, extending its two-week losing streak after modest gains in the previous weeks. Heavyweight banking stocks HDFCBANK and ICICIBANK were among the key drags on the index, contributing roughly -0.45% and -0.43%, respectively, while LT’s sharp 7.68% decline added further downside pressure. Despite the broader weakness, RELIANCE (+0.78%), along with BEL, SUNPHARMA, INFY, and HINDALCO, posted gains that offered some support and helped limit the overall decline. Market breadth remained sharply negative, with only 8 stocks advancing against 41 declining. Risk-off sentiment was pervasive as the US/Israel-Iran war intensified. Oil prices surged beyond USD 100 per barrel. Many Asian indices witnessed significant volatility as equity prices fluctuated wildly.

NIFTY MIDCAP SELECT – Midcaps Fall as Selective Buying Fails to Prop up the Index

Weekly Performance: -2.4%

Date	Open	High	Low	Close
2026-02-27	13645.4	13674.2	13467.0	13491.5
2026-03-02	13039.7	13450.6	13037.5	13289.9
2026-03-04	13097.7	13112.2	12929.0	13034.4
2026-03-05	13161.1	13314.0	13067.8	13260.5
2026-03-06	13246.8	13324.5	13153.1	13166.9

Source: NSE

Figure: Recent performance

Source: NSE

The NIFTY MIDCAP SELECT declined 2.41% in the week ended 6 March 2026, extending its recent weakness after a brief rebound in the previous week. Heavy declines in ASHOKLEY (-7.78%), HPCL (-7.70%), HDFCAMC (-7.22%), DIXON (-4.74%), and MAXHEALTH (-4.57%) emerged as the key drags on the index, pulling it lower during the week. On the upside, SRF (+2.21%), LUPIN (+1.82%), BSE (+1.64%), PERSISTENT (+1.39%), and AUROPHARMA (+0.94%) posted gains that offered limited support and helped cushion part of the downside. However, market breadth remained weak, with 6 stocks advancing against 19 declining.

NIFTY IT – Outperforms the Market, But the Loss-Making Streak Continues

Weekly Performance: -1.5%

Date	Open	High	Low	Close
2026-02-27	31145.8	31305.8	30546.0	30603.8
2026-03-02	30020.2	30587.3	29889.5	30272.9
2026-03-04	30092.2	30579.4	30092.2	30305.3
2026-03-05	30554.8	30563.3	29823.2	30126.8
2026-03-06	30074.6	30664.9	30062.8	30138.4

Source: NSE

Figure: Recent performance

Source: NSE

The NIFTY IT declined 1.52% in the week ended 6 March 2026, extending its five-week losing streak and indicating persistent weakness across the sector. The fall was mainly led by TCS (-3.03%), WIPRO (-2.77%), TECHM (-1.92%), and HCLTECH (-1.83%), which collectively dragged the index lower during the week. Among the gainers, PERSISTENT (+1.39%) and INFY (+0.73%) registered modest advances, offering limited support to the index. Market breadth remained weak, with 2 stocks advancing against 7 declining, highlighting the broad-based selling pressure across the IT pack.

NIFTY BANK – Banks See a Sharp Selloff

Weekly Performance: -4.5%

Date	Open	High	Low	Close
2026-02-27	61057.4	61086.4	60438.9	60529.0
2026-03-02	59204.3	60177.5	59148.0	59839.6
2026-03-04	58447.1	59058.4	58393.6	58755.2
2026-03-05	59008.2	59274.4	58506.4	59055.9
2026-03-06	58629.6	58807.1	57696.4	57783.2

Source: NSE

Figure: Recent performance

Source: NSE

The NIFTY BANK declined 4.54% in the week ended 6 March 2026, marking its steepest fall in recent weeks after a brief phase of modest gains. The decline was primarily driven by sharp losses in major lenders AXISBANK (-4.92%), SBIN (-4.88%), ICICIBANK (-4.75%), KOTAKBANK (-3.91%), and HDFCBANK (-3.43%), which collectively exerted significant pressure on the index. AUBANK (+0.62%) was the only gainer during the week, offering minimal support amid widespread selling across banking stocks. Market breadth remained extremely weak, with only 1 stock advancing against 11 declining.

NIFTY ENERGY – Index Falls Despite RIL’s Gains

Weekly Performance: -2.0%

Date	Open	High	Low	Close
2026-02-27	37116.6	37303.9	36917.9	37045.2
2026-03-02	36014.4	36756.8	35972.7	36453.4
2026-03-04	36010.4	36044.2	35492.4	35589.6
2026-03-05	35765.4	36409.9	35755.8	36273.9
2026-03-06	36320.9	36606.6	36160.0	36319.6

Source: NSE

Figure: Recent performance

Source: NSE

The NIFTY ENERGY declined 1.96% in the week ended 6 March 2026, snapping the previous week’s gains and signalling a pause in the sector’s recent upward momentum. The decline was led by sharp losses in SUZLON (-6.28%), GAIL (-8.15%), and PETRONET (-10.20%), while additional weakness in IOC, BPCL, and MGL also pressured the index. Among the gainers, COALINDIA (+2.28%) and RELIANCE (+0.78%) registered gains, while POWERINDIA, THERMAX, and GVT&D posted modest advances that offered limited support. Market breadth remained weak, with 8 stocks advancing against 32 declining.

NIFTY FMCG – Weak Market Sentiment Impacts FMCG Stocks Too

Weekly Performance: -2.3%

Date	Open	High	Low	Close
2026-02-27	51801.4	51987.6	51039.1	51142.2
2026-03-02	49968.2	50879.5	49954.1	50751.6
2026-03-04	50052.4	50315.8	49742.2	49797.5
2026-03-05	49985.9	50186.4	49354.8	50000.8
2026-03-06	49847.6	50173.6	49679.5	49970.6

Source: NSE

Figure: Recent performance

Source: NSE

The NIFTY FMCG declined 2.29% in the week ended 6 March 2026, marking the second consecutive weekly decline amid weakness in key consumer stocks. The fall was led by a sharp drop in GODREJCP (-8.29%), along with declines in DABUR (-7.70%), HINDUNILVR (-4.81%), NESTLEIND (-3.07%), and ITC (-1.24%), which collectively weighed on the index during the week. Among the gainers, UBL (+9.55%) and RADICO (+4.81%) posted strong advances, offering limited support. Market breadth stayed negative, with 3 stocks advancing against 12 declining.

NIFTY AUTO – ‘Iranflation’ Worries Dampen Sentiment In Auto Stocks

Weekly Performance: -3.8%

Date	Open	High	Low	Close
2026-02-27	28623.2	28687.0	28094.2	28158.8
2026-03-02	27196.4	27951.8	27133.6	27540.1
2026-03-04	26979.4	27012.6	26607.2	26867.2
2026-03-05	27053.5	27471.4	26909.8	27366.8
2026-03-06	27247.2	27321.1	27042.4	27076.4

Source: NSE

Figure: Recent performance

Source: NSE

The NIFTY AUTO declined 3.84% in the week ended 6 March 2026, marking a sharp reversal after a phase of modest gains in the previous weeks. The fall was led by MARUTI (-4.70%), EICHERMOT (-4.87%), MOTHERSON (-7.76%), ASHOKLEY (-7.78%), and M&M (-1.91%), which collectively dragged the index lower during the week. Among the gainers, BHARATFORG (+0.66%) recorded a modest rise, offering limited support. Market breadth remained extremely weak, with only 1 stock advancing against 13 declining.

NIFTY PHARMA – Rally Continues

Weekly Performance: 0.1%

Date	Open	High	Low	Close
2026-02-27	23257.8	23301.8	22917.1	22952.3
2026-03-02	22385.3	22994.6	22354.1	22956.7
2026-03-04	22702.6	22814.3	22528.2	22672.2
2026-03-05	22703.6	23082.8	22703.6	23005.5
2026-03-06	23005.1	23131.7	22877.6	22970.2

Source: NSE

Figure: Recent performance

Source: NSE

The NIFTY PHARMA edged up 0.08% in the week ended 6 March 2026, maintaining its positive momentum for the fifth consecutive week with a marginal gain. The upside was led by SUNPHARMA (+3.60%), with additional support from DRREDDY, LUPIN, ABBOTINDIA, and AUROPHARMA, which posted modest gains during the week. On the downside, declines in GLAND (-8.40%), LAURUSLABS (-4.60%), and CIPLA (-2.00%) limited the overall advance. Market breadth remained slightly negative, with 8 stocks advancing against 12 declining.

NIFTY REALTY – Sharp Weekly Decline Amid Broad Sell-off

Weekly Performance: -4.9%

Date	Open	High	Low	Close
2026-02-27	797.8	798.8	778.2	780.6
2026-03-02	751.8	770.6	751.8	768.0
2026-03-04	754.6	756.1	734.0	744.1
2026-03-05	749.8	760.0	745.9	757.8
2026-03-06	756.4	757.4	740.6	742.0

Source: NSE

Figure: Recent performance

Source: NSE

The NIFTY REALTY declined 4.95% in the week ended 6 March 2026, extending its recent downtrend as selling pressure intensified across real estate stocks. The decline was led by sharp losses in LODHA (-10.23%), along with weakness in DLF (-4.36%) and GODREJPROP (-3.68%), which weighed heavily on the sector during the week. Additional pressure came from declines in RAYMOND, SOBHA, ANANTRAJ, BRIGADE, and OBEROI, further dragging the sector lower. Market breadth remained extremely weak, with no stocks advancing against 10 declining.