After three days of rally, Indian markets are likely to witness a big fall on Thursday following weakness in global markets. The fightback by Iran on important oil reserves of neighboring Gulf countries and the US Fed’s firm decision to hold rates along with slightly hawkish statements are keeping markets under pressure, said analysts.
The shift in risk appetite follows weakness across US and Asian markets, triggered by a combination of hawkish policy signals and escalating geopolitical tensions, said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
Gift Nifty is ruling at 23,270 (8 am IST), signaling a gap-down opening of around 500 points.
“Investor sentiment turned cautious after the Federal Reserve maintained rates but highlighted rising oil prices as a key inflationary risk. Commentary from Jerome Powell suggests that elevated energy prices could delay the rate-cut cycle, adding uncertainty to global growth expectations. This, coupled with renewed tensions in West Asia and attacks on critical energy infrastructure, has pushed crude oil prices higher and weighed on equity markets globally, including the Dow Jones Industrial Average,” he added.
The sharp rise in Brent crude above $110 has emerged as the key trigger, reviving global inflation concerns at a time when central banks continue to maintain a tight monetary stance. “For India, elevated crude prices directly impact inflation and the import bill, adding pressure on the broader macro environment. At the same time, continued FII selling reflects a clear risk-off approach, with sustained capital outflows weighing on market stability,” said Ponmudi R, CEO of Enrich Money.
“The markets are entering a high-volatility phase, with direction likely to remain closely tied to crude price movement, geopolitical developments, and institutional flows,” he noted.
Meanwhile, experts are advising investors to add quality stocks during this correction.
Published on March 19, 2026