Shares of gold loan financiers came under pressure on Monday, March 23, as a sharp decline in bullion prices dampened investor sentiment across the sector. Stocks of Manappuram Finance and Muthoot Finance fell over 5 per cent during morning trade, mirroring weakness in gold prices.

Manappuram Finance Ltd. shares declined 3 per cent on the BSE at 9.59 am, trading at ₹251.35 after touching an intraday low of ₹249.50 compared to the previous close of ₹259.20.

Muthoot Finance Ltd. dropped more sharply, falling over 5 per cent to an intraday low of ₹3,138 from its previous close of ₹3,316.65. CSB Bank Ltd. also witnessed selling pressure in early deals amid the broader weakness in gold-linked counters.

Gold prices have come under strain due to changing global market dynamics that have reduced the metal’s appeal as a defensive asset. Market experts observed that despite persistent geopolitical tensions, bullion has struggled to retain its traditional safe-haven status in the current macroeconomic environment, prompting traders to trim exposure to gold-backed assets.

The weakness extended beyond lenders to jewelery retailers as well. Shares of Kalyan Jewellers, Thangamayil Jewellery, PN Gadgil Jewelers and Sky Gold and Diamonds declined by up to 5 per cent.

Analysts said investor mood remains cautious as bullion trends continue to dictate price action across gold-linked financial and retail counters, with volatility likely to persist if global cues remain uncertain.

Published on March 23, 2026

equity benchmarks fell sharply in early trade on Monday as escalating geopolitical tensions in the West Asia triggered a broad-based sell-off, with investors fleeing risk assets amid fears of oil supply disruptions through the Strait of Hormuz.

The BSE Sensexwhich closed at 74,532.96 on Friday, opened at 73,732.58 and fell to 73,231.48 — down 1,301.48 points or 1.75 per cent — by 9.32 am. The NSE Nifty50which ended the previous session at 23,114.50, opened at 22,824.35 and slid further to 22,700.65, a loss of 413.85 points or 1.79 per cent, at the same time.

The selloff was triggered by a sharp deterioration in global risk sentiment after United States President Donald Trump issued a 48-hour ultimatum to Iran to reopen the Strait of Hormuz, a critical global oil transit route. Iran responded by striking southern Israel near its nuclear facilities and Iranian drones hit Kuwait’s Mina al-Ahmadi refinery over the weekend. Asian markets collapsed in tandem, with Japan’s Nikkei falling nearly 4.63 per cent and South Korea’s Kospi declining around 5.29 per cent.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the conflict has now entered its fourth week without clarity on resolution. “…The war is escalating with President Trump giving an ultimatum to Iran to open the Strait of Hormuit in 48 hours,” he said. “…The uncertainty is huge and markets will be waiting and watching the outcome.”

Crude oil surged to the center of the crisis. Brent futures were at $107.87 per barrel, up 1.37 per cent, while WTI crude rose 0.89 per cent to $99.10 per barrel as of 9:16 am. On the Multi Commodity Exchange, April crude oil futures traded at ₹9,360, up 1.10 per cent from the previous close of ₹9,258. Vijayakumar added that rupee depreciation could benefit exporters. “…The sharp depreciation in the rupee will benefit exporters like pharmaceuticals and autos and auto ancillaries. The beaten down IT segment may surprise with a bounce back,” he said.

The Indian rupee depreciated beyond the ₹94 per US dollar mark in offshore trade for the first time, compounding pressure on the equity market. Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth, said the currency move signals deeper stress. “…This sharp depreciation not only signals capital flight but also amplifies imported inflation risks, complicating the macro outlook,” he said.

Ponmudi R, CEO of Enrich Money, a SEBI-registered wealth tech firm, warned that the conflict was no longer a short-term event. “…The situation is no longer seen as a short-term conflict; instead, it is evolving into a prolonged and complex global standoff, where uncertainty remains extremely high,” he said, adding that Iran’s use of long-range missiles and low-cost drone warfare was “redefining modern warfare strategies” being closely watched by global markets.

On the Nifty50, only two stocks were in positive territory. ONGC rose 0.62 per cent to ₹267.05, while HCL Technologies gained 0.42 per cent to ₹1,339.30. Metal stocks bore the brunt of the selling. Tata Steel fell 4.28 per cent to ₹188.35, Hindalco dropped 3.72 per cent to ₹841.75, and JSW Steel declined 3.28 per cent to ₹1,131.20. In financials, Shriram Finance fell 3.52 per cent to ₹905.60 and State Bank of India shed 3.18 per cent to ₹1,024.40.

Akshay Chinchalkar, Managing Partner and Head of Markets Strategy at The Wealth Company, noted that Friday’s session had already shown signs of vulnerability. “…Friday’s candle became an ‘inverted hammer’ with a long upper shadow, which means sellers remain active near 23,350. Unless the market is able to break through this area, the trend will remain weak,” he said. He added that foreign institutional investors withdrew over ₹5,500 crore on Friday, their 16th consecutive session of outflows, while domestic institutional investors absorbed ₹5,706 crore.

India VIX hovered around 22, pointing to elevated fear levels. Hitesh Tailor, Research Analyst at Choice Equity Broking, flagged oversold conditions on Nifty but cautioned against bottom-fishing. “…Fresh long positions should ideally be considered only once the Nifty manages a decisive recovery and sustains above the 24,500–25,000 mark,” he said.

Gaurav Udani, Founder of ThinCredBlu Securities, said capital preservation must be the priority in the near term. “…Traders should remain extremely cautious, avoid attempting to buy into falling markets, and focus on capital preservation as volatility is likely to remain elevated,” he said.

Markets globally are now watching Trump’s 48-hour deadline, which expires Monday evening. A military strike on Iranian power plants could push Brent above $130, while a diplomatic resolution could trigger a sharp relief rally. Until that outcome becomes clearer, analysts expect volatility to remain the dominant feature of Indian markets.

Published on March 23, 2026