Sensex And Nifty Extend Losses for Third Straight Session Amid Global Tensions

Domestic equity markets closed significantly lower for the third consecutive session on March 4, 2026, as rising geopolitical tensions in West Asia weighed heavily on investor sentiment. The Sensex dropped 1,123 points to close at 79,116, while the Nifty fell 385 points to end at 24,481.

Intraday trade was marked by heightened volatility, with both indices retreating to multi‑month lows before recovering partially. The decline occurred alongside sustained weakness in the rupee, reflecting broader risk aversion across global markets.

Benchmark Indices Hit Multi-Month Lows During Trade

Both major indices witnessed steep intraday declines as selling pressure intensified during the first half of the session. The Sensex plunged nearly 1,700 points, or 2.24%, to an 11‑month low of 78,443.2 before recovering some ground by the close.

The Nifty dropped 2.25% to a 10‑month low of 24,305.4 during early trade, reflecting widespread investor caution. Despite late-session stabilisation, both benchmarks ended deeply in the red, extending the ongoing losing streak.

Market Breadth Weak as Sectoral Indices Decline

Market breadth remained sharply negative, with 46 of the 50 Nifty constituents closing in the red. The NSE advance–decline ratio stood at 1:5, signalling widespread weakness across sectors.

On the Sensex, 27 of the 30 stocks ended the session lower. This distribution reflects broad selling pressure in the market.

Stock-Specific Movements Drive Additional Volatility

Several frontline and mid-tier companies saw significant price movements during the session. Petronet LNG slumped 9% after Qatar halted LNG production, impacting sentiment across the energy basket. L&T extended its losing streak, falling nearly 10% over the past four sessions amid sustained selling pressure.

JSW Infrastructure declined 2% following reports of debris striking a storage tank at its Fujairah liquid terminal in the UAE. KRBL and LT Foods also recorded losses as rice export‑related concerns intensified with the evolving US‑Iran conflict.

Currency Market Pressure Adds to Sentiment Weakness

The rupee recorded fresh lows during the session, adding to market concerns. It hit an intraday record low of 92.30 against the US dollar before ending at 92.15, marking a new record closing low.

This compared with 91.47 in the previous session, reflecting sustained pressure from capital outflows and elevated crude oil prices. Currency weakness contributed to cautious investor positioning across equity markets.

Read More: Gold And Silver ETFs Drop Sharply.

Conclusion

Indian equity benchmarks closed sharply lower on March 4, 2026, as geopolitical tensions triggered risk aversion across sectors. The Sensex and Nifty touched multi‑month lows during trade before recovering modestly.

Market breadth weakened significantly, with most sectors and large‑cap stocks declining. The rupee’s record low added to prevailing market pressures, signalling continued caution among participants.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.