Sectorally, all NSE indices traded in the red, with metal, PSU bank and consumer durable stocks emerging as the top laggards, reflecting weak risk appetite and profit booking at higher levels.

At 09:25 IST, the barometer index, the S&P BSE Sensex tanked 1316.16 points or 1.77% to 73,214.79. The Nifty 50 index plunged 390.60 points or 1.69% to 22,703.10.

The broader market underperformed the frontline indices. The BSE 150 MidCap Index dropped 2.33% and the BSE 250 SmallCap Index slipped 2.35%.

The market breadth was weak. On the BSE, 648 shares rose and 2,643 shares fell. A total of 179 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term rallied 9.69% to 25.03.

Foreign portfolio investors (FPIs) sold shares worth Rs 5,518.39 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 5,706.23 crore in the Indian equity market on 20 March 2026, provisional data showed.

Stocks in Spotlight:

Union Bank of India declined 4.02%. The bank has raised Rs 3,000 crore through the issuance of senior, rated, listed, unsecured, redeemable, taxable, transferable long-term bonds on a private placement basis. The base issue size of Rs 3,000 crore included a green-shoe option of Rs 4,500 crore, taking the total issue size to Rs 7,500 crore.

RITES fell 1.70%. The company has secured a letter of acceptance (LoA) for the maintenance of Indian Railways' first high-speed test track. The 64-km dedicated track, developed by RDSO, is designed for comprehensive testing of rolling stock.

MM Forgings declined 2.08%. The company said that its board will meet on 25 March to consider raising funds via equity issuance, subject to necessary approvals.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 1.26% to 6.822 compared with the previous session close of 6.737.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 93.8500 compared with its close of 93.5350 during the previous trading session.

MCX Gold futures for 2 April 2026 settlement tumbled 5.30% to Rs 136,906.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.42% to 99.63.

The United States 10-year bond yield rose 0.05% to 4.412.

In the commodities market, Brent crude for May 2026 settlement jumped 75 cents or 0.67% to $112.94 a barrel.

Global Markets:

Asia-Pacific markets sold off sharply on Monday, as investors fled risk assets amid escalating conflict in the Middle East that has entered its fourth week.

President Donald Trump said on Saturday that he would 'obliterate' Iran's power plants if Tehran failed to fully reopen the Strait of Hormuz ' a vital artery for global energy flows ' within 48 hours.

Iran pushed back, threatening to target energy infrastructure and desalination facilities in the Gulf if the U.S. carries out its ultimatum.

Overnight in the U.S., the Dow Jones Industrial Average declined 0.96% to close at 45,577.47 and the S&P 500 fell 1.51% to end at 6,506.48 while the Nasdaq Composite futures pulled back by 2% to end at 21,647.611.

The three major indices ended last week lower, with the S&P 500 declining by more than 1.5% and falling below its 200-day moving average for the first time since May. The Dow, which saw its first four-week losing streak since 2023, and the Nasdaq each fell around 2% for the week.

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