This Indian Market Weekly Wrap covers March 2 to 8, 2026, the worst four-session stretch for Dalal Street in recent months. Nifty fell from roughly 25,116 on Monday to close Friday at 24,450. That is a loss of over 665 points, or approximately 2.64%, across just four trading sessions.
The driver was geopolitical. US strikes on Iran triggered a crude oil surge, a rupee selloff, and FII outflows of Rs 21,831 crore for the month so far. Markets were also closed on Tuesday March 3 for Holi, which compressed four weeks of selling pressure into three hard sessions.
At the low point on Wednesday March 4, Nifty touched 24,305. Investors lost an estimated Rs 23 lakh crore in wealth across the week.
Thursday brought a brief recovery. Nifty bounced 285 points to 24,765 after reports emerged that Iran had made a conditional offer to suspend its nuclear programme. But Friday erased most of that gain, with the index sliding back to 24,450 as the conflict showed no signs of resolving.
Here is every session of this Indian Market Weekly Wrap broken down clearly.
Indian Market Weekly Wrap: What Nifty Did From March 2 to 6
Nifty entered the week around 25,116 and immediately came under pressure.
On Monday March 2, Nifty closed at 24,865.70, down 1.24% for the session. Only 8 of 50 stocks advanced. Top losers were IndiGo down 6.09%, LT down 5.24%, and Adani Ports down 3.43%. The only pockets of green were defence and pharma. BEL gained 2.13%, Hindalco added 1.70%, and Sun Pharma rose 0.93%. India VIX surged 25%, signalling sharply elevated fear. According to NSE India, over 869 stocks across the broader market hit 52-week lows that day.
Tuesday March 3 was a complete market holiday for Holi. No trading took place on NSE or BSE.
Wednesday March 4 was the worst session of the week. Nifty dropped 1.90% to close at 24,393.25. The intraday low was 24,305.40, close to a multi-month support zone. Tata Steel fell 7.32%, LT dropped another 6.42%, and Shriram Finance lost 5%. The rupee hit a record low during the session. Only 6 of 50 stocks closed positive. Investors lost Rs 12 lakh crore in a single session.
Thursday March 5 brought the only meaningful bounce of the week. Nifty gained 285.40 points to close at 24,765.90, up 1.17%. The catalyst was a report suggesting Iran had made a conditional offer to suspend its nuclear programme, which eased oil prices and improved global sentiment.
Friday March 6 gave most of that back. Nifty fell 1.27% to close at 24,450.45. The index opened lower at 24,656, briefly touched a high of 24,700, then sold off into the close as geopolitical anxiety returned. Defence, Energy and IT were the only sectors that ended positive that day.
For the full week, Nifty fell from 25,116 to 24,450 a loss of approximately 665 points across four sessions.
Indian Market Weekly Wrap: What Bank Nifty Did This Week
Bank Nifty had a harder week than Nifty. The index fell from around 61,110 at Monday's open to close Friday at 57,783.25, a loss of over 3,300 points, or approximately 5.4% for the week.
On Monday March 2, Bank Nifty closed at 59,839.65, down 1.14%. Not a single Bank Nifty constituent closed in the green that session. PNB fell 2.39%, Yes Bank dropped 2.32%, and IDFC First Bank lost 2.22%.
Wednesday March 4 was far worse. Bank Nifty dropped another 2.22% to close at 58,509.65. The session low touched 58,204. Again, all 14 Bank Nifty stocks closed in the red. Bank of Baroda fell 5.22%, Canara Bank dropped 4.56%, and Union Bank lost 4.22%. The rupee hitting a record low added pressure on private banks worried about foreign capital outflows.
Thursday's broader market recovery helped Bank Nifty stage a partial bounce. But Friday March 6 saw the index close at 57,783.25, down 2.15% on the day. ICICI Bank fell 3.13%, PNB dropped 2.62%, and SBI lost 2.54%.
The PCR for Bank Nifty closed the week at 0.79 with max pain at 58,400. Resistance sits at 58,500 and support at 57,600. The index is now below its 200-day EMA and in a clear short-term downtrend.
Indian Market Weekly Wrap: Sector Winners and Losers This Week
Sector performance this week reflected a clear flight to safety and away from rate-sensitive and commodity-linked names.
Defence was the standout winner. The Nifty Defence index gained approximately 3.2% for the week. HAL, BEL, BDL, Zen Technologies, and GRSE all saw buying as analysts drew parallels between the current geopolitical environment and the IT sector's decades-long outperformance. BEL was the top Nifty gainer on both Monday and Friday. The logic is simple: a prolonged conflict means defence budgets rise globally, and India's defence export order book gets stronger.
IT was the only other sector that ended the week in marginal positive territory. Infosys gained 1.30% on Wednesday and Coal India added 2.18% on the same session, both benefiting from being perceived as domestically insulated from the oil shock. Elara Capital noted in a report that Nifty near-term returns may remain flat while analysts see IT as a relative safe haven.
On the losing side, Metal was the worst performer, down 4.5% for the week. Tata Steel was the biggest single-stock casualty, falling 7.32% on Wednesday alone. PSU Banks lost 3.91% as public sector banks faced a dual headwind of rising crude prices and FII selling. Realty fell 3.71%.
Auto was also hard hit, down 4.2% for the week. Rising crude directly threatens fuel cost assumptions and consumer demand for vehicles. IndiGo was the worst performer in the broader market on Monday, falling 6.09% as aviation fuel costs spiked.
The message from sectors was consistent: anything tied to domestic consumption, crude imports, or global trade faced sustained selling. Defence and select IT stocks were the only places to hide.
Indian Market Weekly Wrap: Where FII and DII Money Went
Foreign institutional investors sold heavily throughout this Indian Market Weekly Wrap period. Total FII net outflows for March through March 6 stood at Rs 21,831.19 crore.
Day by day, the selling was consistent and large. On Monday March 2, FIIs sold Rs 3,295.64 crore net. On Wednesday March 4, the worst session, FII net selling hit Rs 8,752.65 crore, one of the heaviest single-day outflow sessions in months. Thursday March 5 saw a moderation to Rs 3,752.52 crore in net selling. On Friday March 6 the selling resumed at Rs 6,030.38 crore.
The rupee bore the brunt of this flow. It hit a record low during Wednesday's session and closed that day at 92.15 against the dollar, a two-session fall of 68 paise, the steepest such move since May 2025. A weaker rupee makes Indian assets less attractive in dollar terms, which accelerates FII exits.
Domestic institutional investors were the counterweight throughout the week. DIIs bought Rs 8,593.87 crore on Monday, Rs 5,347 crore approximately on Wednesday, Rs 5,153.37 crore on Thursday, and Rs 6,971.51 crore on Friday. The DII total for the four trading sessions came to approximately Rs 26,064 crore, the only reason the market did not fall harder.
The net picture: FIIs were distributing, DIIs were absorbing, and the market found a floor each time, but the FII pressure was large enough to prevent any sustained recovery.
How Many Stocks Were Actually Going Up
Indian Market Weekly Wrap: What the F&O Market Tells Us
The options data this week painted a clear bearish picture at the start and only partly improved by Friday.
On Monday March 2, Nifty PCR was 0.74 with max pain at 24,900. The highest call OI was at the 25,000 strike. This told you that the market's centre of gravity was already shifting lower, the 25,000 call wall was heavy, making recovery to those levels difficult without a fundamental catalyst.
By Wednesday March 4, the options picture had moved sharply. Highest call OI was concentrated at 24,400 and highest put OI was at 24,000. Max pain dropped to 24,450. PCR remained weak at 0.75, confirming bearish positioning. Call writers were aggressively building positions at lower strikes, effectively capping any bounce.
Thursday's recovery day saw put writing at 24,500 increase, a sign that traders were becoming more confident the 24,500 floor would hold. The 25,000 calls continued to hold the highest overall open interest, confirming that zone remains a strong resistance.
By Friday close, Nifty PCR was 0.68 and max pain sat at 24,550. Total call OI was 15.43 crore contracts versus put OI of 10.50 crore. The skew toward calls indicates the market is net positioned for limited upside. A PCR below 0.75 generally signals bearish sentiment among option writers.
For Bank Nifty, Friday's PCR came in at 0.79 with max pain at 58,400. Resistance at 58,500 and support at 58,000. The index's March 30 expiry still has significant open interest at the 59,000 strike on both calls and puts.
The weekly options expiry on March 10 will be a key event. With Nifty below the 24,600 to 24,570 support zone, any gap-down opening at the start of next week puts the 24,200 to 24,000 zone in play.
Indian Market Weekly Wrap: IPO Tracker for March 2 to 8
The IPO calendar remained busy despite the market crash, though demand was noticeably weak for smaller issues.
Sedemac Mechatronics was the headline IPO of the week. Its Rs 1,087.45 crore issue, priced at Rs 1,287 to Rs 1,352 per share, was open from March 4 to 6. Despite the brutal market conditions on its opening days, it closed subscription at 2.68 times overall on Day 3. The company has a market cap of Rs 7,058 crore, a PE of 150.5, and a ROCE of 24%. Allotment date is March 9.
Acetech E-Commerce had a weaker showing, closing at just 0.7 times subscription. Its listing is on March 9 with a market cap of Rs 184 crore. The grey market signals cautious listing expectations given the broader market environment.
PNGS Reva Diamond Jewellery listed on Wednesday March 4. The issue, priced at Rs 386, saw a weak debut with the grey market suggesting a discount to the issue price. The Rs 380 crore issue closed on February 26 with moderate demand from retail and NII categories.
Upcoming listings this week: Elfin Agro India lists March 12 (PE 18.0, ROCE 36%), Srinibas Pradhan lists March 13, and Rajputana Stainless lists March 16 (PE 27.5, ROCE 37%). RaajMarg Infra opens for subscription March 11 to 13 with a listing target of March 24.
| Company | M.Cap (Cr) | P/E | ROCE | Subscription |
|---|---|---|---|---|
| Sedemac Mechatronics | ₹4 Mar | 6 Mar | 11 Mar | 7058 Crx |
| Acetech E-Commerce | ₹27 Feb | 4 Mar | 9 Mar | 184 Crx |
| Elfin Agro India | ₹5 Mar | 9 Mar | 12 Mar | 91 Crx |
| Srinibas Pradhan | ₹6 Mar | 10 Mar | 13 Mar | 77 Crx |
| Rajputana Stainless | ₹9 Mar | 11 Mar | 16 Mar | 1096 Crx |
Key Events to Watch Next Week
| Event | Date | Forecast | Previous |
|---|---|---|---|
| Inflation Rate YoY | 12 Mar 16:00 | 2.13% | High |
| Balance of Trade | 16 Mar 14:30 | -34.68B | High |
| HSBC Manufacturing PMI Flash | 24 Mar 10:30 | 56.9 | Medium |
| HSBC Services PMI Flash | 24 Mar 10:30 | 58.1 | Medium |
| HSBC Composite PMI Flash | 24 Mar 10:30 | 58.9 | Medium |
| Industrial Production YoY | 28 Mar 16:00 | 4.8% | Medium |
| Manufacturing Production YoY | 28 Mar 16:00 | 4.8% | Medium |
Indian Market Weekly Wrap: News That Moved Markets
US Strikes on Iran Trigger Rs 23 Lakh Crore Wealth Wipeout
US military strikes on Iran pushed crude oil to its highest price since 2024. Brent crude rose 4.9% to $85.41 per barrel on Thursday March 5 alone. For India, a crude oil importer dependent on the Middle East for over 85% of its energy needs, this hit hard on multiple fronts at once. The rupee fell to a record low of 92.15 against the dollar, its steepest two-session decline since May 2025. Inflation fears rose. FIIs pulled Rs 21,831 crore out of Indian markets through the month so far. The total investor wealth erosion across the week was estimated at Rs 23 lakh crore. Trump's statement that the conflict could last four to five weeks kept markets on edge for the entire week.
Defence Stocks Buck the Market Crash as War Spending Thesis Plays Out
While most of the market was deep in the red, defence stocks staged a notable rally this week. BEL was the top Nifty gainer on both Monday and Friday. HAL, BDL, Zen Technologies, GRSE, and Mazagon Dock Shipbuilders all saw strong buying. Mazagon Dock rose more than 5% on Friday after clarifying that CNC negotiations on a Rs 99,000 crore defence deal have been completed and the proposal is awaiting government approval. Analysts began openly comparing the defence sector's potential to IT's multi-decade outperformance, calling it India's new structural growth story. Defence stocks are now being positioned as a geopolitical hedge within Indian equity portfolios.
Tata Motors February Auto Sales Shine but Sector Still Gets Sold
February auto sales data showed strong numbers across the board. Tata Motors reported commercial vehicle sales up 32.8% and passenger vehicle sales up 34%. Hero MotoCorp posted a 45% rise in two-wheeler volumes. The data was genuinely strong. However, the market sold auto stocks anyway, with the Nifty Auto sector down 4.2% for the week. The reason was forward-looking concern: surging crude oil prices raise fuel costs for consumers, compress margins on vehicles running on petrol and diesel, and create uncertainty about demand going into Q1 FY27. Good numbers from February were not enough to overcome bearish near-term expectations.
Indian Market Weekly Wrap Outlook: Key Levels to Watch Next Week
Nifty ended this Indian Market Weekly Wrap period at 24,450 and is sitting in a delicate zone going into next week.
The immediate support is 24,200 to 24,000. This zone has historically attracted strong buying interest. A decisive breakdown below 24,000 would open the door to 23,900 and potentially 23,400 to 23,300. The Nifty 100-week moving average is in this zone and represents the last major structural support before a deeper correction.
On the upside, 24,600 to 24,700 is the first resistance. The index tried to reclaim 24,700 on Friday and failed. Above that, the stronger wall is 24,900 to 25,000. Nifty needs to close above 25,000 on a daily basis for the short-term structure to shift back to neutral.
The weekly options expiry on March 10 will set the tone for the opening sessions. PCR at 0.68 and max pain at 24,550 suggests the expiry gravitational pull is around 24,500 to 24,550. A gap-down open below 24,400 going into expiry would be a warning sign.
For Bank Nifty, 57,600 is the support to hold. A break below puts 56,000 in play. Resistance is at 58,500, which was the open on Friday before sellers took over.
The bigger picture going into next week: FII selling has totalled Rs 21,831 crore so far in March with no sign of reversal. DII buying has been strong but is being tested. The key unknown is whether Trump's Iran war timeline escalates or de-escalates. India's CPI inflation data on March 12 will also be watched closely, the previous reading was 2.13% and any upside surprise in the context of rising crude oil will further pressure RBI's rate cut expectations.
The bias for next week is cautiously bearish until Nifty can reclaim 24,700 on a closing basis.
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