Chandigarh, March 27: The Indian benchmark indices opened in the red on Friday and continued a downward spiral throughout the session, erasing gains made earlier in the week. By 2:12 p.m., the Sensex stood at 73,887.69, down 1,412.90 points, as investors reacted to the intensifying conflict involving Iran. The slump was further fueled by consistent selling from foreign institutional investors, who have pivoted toward safer assets amid rising US bond yields and crude oil prices exceeding $100 per barrel.
Karan Rijhsinghani of Atom Privé Financial Services asserted that the current phase is characterized by short-term risk aversion rather than a long-term downturn. He stated that the combination of high oil costs and significant foreign capital outflows of approximately Rs 40,000 crore this month has created a challenging momentum for domestic equities. Rijhsinghani affirmed that the India VIX, a measure of market fear, has spiked to between 20 and 25, making market timing particularly difficult for retail investors.
The sell-off was felt across all sectors, mirroring similar declines in major global markets. Analysts maintained that for those looking to navigate the turbulence, a strategy of gradual investment is preferable to large, one-time capital commitments. Experts suggested that investors should utilize this period to recalibrate their holdings, perhaps rotating 10 to 15 percent of high-risk bets into more stable, fundamentally strong index leaders.
Despite the sharp decline, market observers noted that the structural integrity of the Indian economy remains a point of focus. Rijhsinghani declared that large-cap companies remain the most resilient options for those looking to participate in an eventual rebound. He affirmed that keeping a 10 to 15 percent allocation in short-duration debt or liquid funds provides the necessary cushion to manage rising inflation and energy-related risks.
