The ongoing conflict in the region also overshadowed key domestic macroeconomic data, including trade deficit and wholesale inflation figures. Market participants also tracked policy signals from major central banks such as those of U.S, Switzerland, the UK, Japan and the Eurozone. The Nifty ended the week below the 23,150 mark.

In the week ended on Friday, 20 March 2026, the S&P BSE Sensex shed 30.96 points or 0.04% to settle at 74,532.96. The Nifty 50 index dropped 36.60 points or 0.16% to settle at 23,114.50. The BSE 150 Mid-Cap index rose 0.01% to close at 14,844.43. The BSE 250 Small-Cap fell 0.19% to end at 5,864.23.

Weekly Index Movement:

Domestic equity benchmarks ended sharply higher on Monday, supported by value buying in select large-cap stocks as investors assessed the potential fallout of the ongoing U.S.-Iran conflict. However, overall sentiment remained cautious amid persistent FII outflows and elevated crude oil prices due to ongoing tensions involving Iran, Israel and the United States.

The S&P BSE Sensex jumped 938.93 points or 1.26% to 75,502.85. The Nifty 50 index rose 257.70 points or 1.11% to 23,408.80. In the past three sessions, the Sensex dropped 4.65% while the Nifty fell 4.57%.

Domestic equity indices ended Tuesday's session with strong gains, extending their rally for the second consecutive day, tracking positive global cues. However, sentiment remained cautious amid concerns over the US-Iran conflict in the Middle East and elevated crude oil prices, which continue to weigh on investor confidence.

The S&P BSE Sensex jumped 567.99 points or 0.75% to 76,070.84. The Nifty 50 index rose 172.35 points or 0.74% to 23,581.15. In the two consecutive trading sessions, the Sensex and Nifty jumped 2.02% and 1.86%, respectively.

Domestic equity benchmarks ended Wednesday’s session with strong gains, extending their rally for the third straight day, even as the ongoing Middle East conflict kept investor sentiment cautious. The S&P BSE Sensex jumped 633.29 points or 0.83% to 76,704.13. The Nifty 50 index surged 196.65 points or 0.83% to 23,777.80. In three consecutive trading sessions, the Sensex and Nifty climbed 2.87% and 2.71% respectively.

Dalal Street witnessed a brutal selloff on Thursday, with benchmark indices Sensex and Nifty plunging over 3%, leaving traders nursing significant losses after a sharp three-day rally. The fall was driven by a combination of factors, led by aggressive profit booking after the recent surge and a sharp spike in global crude oil prices, with Brent crude jumping to around $119 per barrel, raising concerns over inflation and macro stability.

The S&P BSE Sensex tanked 2,496.89 points or 3.26% to 74,207.24. The Nifty 50 index plunged 775.65 points or 3.26% to 23,002.15. In the past three sessions, the Sensex and Nifty climbed 2.87% and 2.71% respectively.

The key domestic indices ended with modest gains on Friday, supported by short-covering following sharp losses in the previous session. The Nifty ended above the 23,100 level. As per provisional closing data, the barometer index, the S&P BSE Sensex surged 325.72 points or 0.44% to 74,532.96. The Nifty 50 index rose 112.35 points or 0.49% to 23,114.50.

Economy:

India's merchandise trade deficit narrowed to $27.1 billion in February from $34.68 billion in January. Goods exports edged up to $36.61 billion in February from $36.56 billion in January, while imports declined to $63.71 billion from $71.24 billion during the same period. However, on a year-on-year basis, the merchandise trade deficit widened sharply from $14.42 billion in February last year.

Meanwhile, India’s wholesale price index (WPI) inflation accelerated to 2.13% in February 2026 compared with 1.81% in January 2026, marking an 11-month high. Food inflation edged higher to 1.85% during the month from 1.41% in January. Inflation in the fuel and power segment turned positive at 1.17% in February against a contraction of 1.62% in the previous month.

West Asia Conflict:

The Middle East conflict intensified as Iran stepped up retaliatory attacks following Israeli strikes on its leadership, targeting energy infrastructure in the UAE and key oil and gas facilities across the region. Rising tensions around the Strait of Hormuz heightened fears of supply disruptions, pushing global oil and gas prices higher. The situation worsened after reported strikes killed senior Iranian officials, with both sides issuing strong warnings, raising concerns of a prolonged conflict and its impact on global energy markets.

Stocks in Spotlight:

HDFC Bank declined 4.36%. The bank announced that its part-time chairman and independent director, Atanu Chakraborty, has resigned with immediate effect from 18 March 2026. In his resignation letter, he stated that certain happenings and practices within the bank over the last two years were not in congruence with his personal values and ethics. The Reserve Bank of India has approved the appointment of Keki Mistry as interim part-time chairman for a period of three months, effective 19 March 2026. Chakraborty joined the board in May 2021, and his tenure oversaw the merger with HDFC.

Tejas Networks added 2.66% after the company announced that it had received a purchase order to supply its 4G radio access network (RAN) solutions for a mobile network expansion project in South Asia. The company said its 4G multiband radio products will be deployed at multiple locations across the operator’s network as part of the project. The order marks a step toward expanding Tejas Networks’ international wireless customer base.

Reliance Industries (RIL) jumped 2.22%. The company announced that it has entered into a binding long-term supply and purchase agreement with Samsung C&T Corporation, South Korea, for the supply of green ammonia over a 15-year period starting in the second half of FY2029.

Tata Motors declined 1.36%. The company announced a price hike across its commercial vehicle (CV) portfolio, effective from 1 April 2026.

Fractal Analytics climbed 2.83% after the company announced the launch of its new enterprise-grade generative AI platform, 'LLM Studio', signalling its deeper push into scalable AI solutions for businesses.

State Bank of India (SBI) climbed 1.06%. The bank’s subsidiary company, SBI Funds Management (SBIFM) has filed a draft red herring prospectus (DRHP) with SEBI for an initial public offer (IPO).

Natco Pharma jumped 0.82%. The company announced the launch of Semaglutide Injection (multi dose vials) in the India market under the brand names of SEMANAT and SEMAFULL.

Global Markets:

The People’s Bank of China kept its key lending rates steady in March, with the one-year LPR at 3.0% and the five-year LPR at 3.5%, in line with expectations. The decision reflects a cautious stance amid global uncertainties, even as domestic data shows resilience, while property weakness and soft demand persist.

On the data front, China’s retail sales for the first two months of the year rose 2.8% YoY, beating expectations for a 2.5% increase but marking a slowdown from the 4% growth recorded in the January-February period of 2025.

China’s Industrial output increased 6.3%, also surpassing forecasts for a 5% rise. Industrial production has remained a bright spot in the world’s second-largest economy, supported by resilient external demand, particularly from European and Southeast Asian markets.

Japanese exports increased by 4.2% year-on-year in February. Exports had risen 16.8% jump in the previous month.

The Bank of Japan kept the interest rates steady at 0.75% but noted that inflation risks now are tilted to the upside due to the Iran war.

The Reserve Bank of Australia (RBA) on Tuesday raised its cash rate by 25 basis points to 4.10% in a narrowly split 5-4 decision, signalling heightened concern among policymakers that inflation could remain above target for longer than previously expected. The central bank highlighted rising fuel costs-linked to the ongoing Middle East conflict-as a key upside risk to inflation, reinforcing expectations that monetary policy may need to stay restrictive in the near term.

Malaysia’s annual inflation eased to 1.4% in February 2026 from 1.6% in January, coming in below market expectations of 1.6% and marking the lowest level since November. The moderation was driven by slower price increases across key segments, including food, health, and education. Core inflation also softened to 2% from 2.3%, the lowest in six months. On a monthly basis, consumer prices rose 0.2% in February, compared with a 0.1% rise in the previous month.

The Swiss National Bank held its policy rate at 0% and signaled readiness to intervene in currency markets, while inflation remains subdued but may rise due to higher energy prices.

Bank of England kept its key rate unchanged at 3.75%. The Bank said prices would rise more quickly due to the "new shock to the economy" and now expects inflation to be close to 3.5% in March.

The Federal Reserve held its key policy rate steady at 3.5% to 3.75%, with Chair Jerome Powell watering down rate-cut expectations, saying that inflation was not coming down as much as ‘hoped.’

The U.S. producer price index—which tracks the change in wholesale prices—rose 0.7% in February, well above the 0.3% that economists polled by Dow Jones had estimated.