Why the Stock Market (NSE and BSE) is Falling Today: Nifty 50 Slips to 23,600, BSE Sensex Drops 800 Points

Indian stock markets opened sharply lower on March 12, extending losses for the second straight session. The benchmark indices Nifty 50 and BSE Sensex declined nearly 1% each, with the Nifty slipping close to 23,600 and the Sensex falling around 800 points during early trade.

The selling pressure was visible across sectors, especially in banking stocks as well as mid-cap and small-cap shares.

Rising Crude Oil Prices

One of the biggest reasons behind the market decline is the sharp increase in global crude oil prices.

Both Brent crude and WTI crude surged after supply disruptions near the Strait of Hormuz, raising concerns about global energy supplies.

Brent crude rose close to $98 per barrel, while WTI crude moved above $93 per barrel. The situation has worsened due to ongoing geopolitical tensions in the region.

The International Energy Agency (IEA) is considering releasing about 400 million barrels of oil from emergency reserves to stabilise supply, but investor concerns remain high.

Weakening Indian Rupee

The surge in crude oil prices has also weakened the Indian currency.

The Indian rupee is trading below 92 against the US dollar, close to its lowest level in 2026. A stronger dollar and rising oil prices increase import costs for India, which negatively impacts market sentiment.

Currency weakness often leads to higher inflation risks and reduces investor confidence in equities.

LPG Supply Shortage

The supply disruption around the Strait of Hormuz has also affected the availability of liquefied petroleum gas (LPG) in India.

Reports suggest that many small food businesses are struggling due to LPG shortages, and some may temporarily shut operations.

To manage the situation, the government has prioritised LPG supply for essential sectors such as hospitals and educational institutions. Refineries have also been asked to increase production by about 10% to stabilise supplies.

Continued FII Selling

Another major reason behind the market weakness is heavy selling by foreign investors.

Foreign Institutional Investors (FIIs) have already sold around ₹39,116 crore worth of Indian equities in March so far. They have been net sellers in the market for the last eight consecutive months.

In comparison, FIIs sold ₹41,435 crore in January 2026 and ₹47,666 crore in July 2025, showing consistent outflows from the Indian market.

Even though domestic institutional investors (DIIs) are buying shares, it has not been enough to offset the large foreign outflows.

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Conclusion

Indian markets are currently facing pressure due to a combination of global and domestic factors. Rising crude oil prices, rupee weakness, LPG supply concerns, and persistent FII selling have pushed indices like the Nifty 50 and BSE Sensex lower.

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