Indian stock markets dropped sharply on Friday, with the BSE Sensex falling nearly 1,100 points and the Nifty 50 closing below the 24,500 level.
The Sensex ended at 78,870.95 after losing more than 1,100 points, while the Nifty 50 fell about 320 points to close at 24,438.70.
The heavy selling erased nearly Rs 3 lakh crore from the total market value of companies listed on the Bombay Stock Exchange.
Here are five factors that could influence market movement on March 9.
Escalating conflict in Middle East
The conflict involving the United States, Israel and Iran continues to intensify, raising concerns in global financial markets.
US Defence Secretary Pete Hegseth said the conflict has “only just begun”, while US President Donald Trump stated that there is no time limit on how long the war could continue.
Tensions increased after US and Israeli strikes reportedly killed Iran’s Supreme Leader Ali Khamenei.
Iran responded with retaliatory attacks in several parts of the region. The lack of clear diplomatic efforts to stop the fighting has unsettled investors worldwide.
Crude oil prices surge
Oil prices have risen sharply as the conflict in the Middle East continues.
Before the tensions began, crude oil was trading around $62 per barrel. By Friday, prices had climbed significantly.
Brent crude settled at $92.69 per barrel, while West Texas Intermediate closed at $90.90.
Markets have been worried about disruptions in energy supplies through the Strait of Hormuz, a crucial shipping route between Iran and Oman.
Nearly one-fifth of the world’s crude oil and liquefied natural gas normally passes through this route.
With the strait largely shut for several days, around 140 million barrels of oil — roughly 1.4 days of global demand — have been prevented from reaching international markets.
Continued selling by FIIs
Foreign institutional investors (FIIs) remained net sellers in the previous trading session.
According to data from the National Stock Exchange of India, FIIs sold shares worth about Rs 6,030 crore on Friday. In contrast, domestic institutional investors bought equities worth Rs 6,971 crore.
So far this month, FIIs have sold nearly Rs 30,000 crore worth of Indian equities as global investors react cautiously to the Middle East conflict.
Global brokerage Morgan Stanley has also reduced its exposure to Indian markets and taken a more cautious view on Asian equities. The firm warned that the war could disrupt supply chains if oil shipments through the Strait of Hormuz do not recover.
Weak US jobs data
Recent labour data from the United States has also raised concerns among investors.
According to the US Bureau of Labor Statistics, nonfarm payrolls fell by 92,000 in February. This was a sharp decline from the revised gain of 126,000 jobs in January and much weaker than the 50,000 increase expected by economists.
The unemployment rate also rose slightly to 4.4% from 4.3% in the previous month, indicating some weakening in the US labour market.
Weak technical outlook
Market experts say Indian equities may start the coming week on a cautious note due to rising global uncertainty and geopolitical tensions.
According to analysts, the current trend in GIFT Nifty suggests a bearish undertone compared to the previous Nifty close near 24,450.
From a technical perspective, the Nifty is currently taking support near 24,300 but remains volatile. The 24,900–25,000 range is expected to act as a resistance zone where selling pressure could appear if the index rises.
If the index falls below 24,300, the next important support level could be around 23,800, which traders will closely watch in the coming sessions.
