Benchmark indices BSE Sensex and Nifty 50 snapped their five-day winning streak on Thursday, as selling across financial sector, rising crude oil prices and concerns over violations of the US-Iran ceasefire weighed on investor sentiment.
The Sensex declined 931.25 points, or 1.20 per cent, to close at 76,631.65, while the Nifty fell 222.25 points, or 0.93 per cent, to settle at 23,775.10.
Selling pressure was broad-based, particularly across banking and heavyweight stocks. Among Sensex constituents, InterGlobe Aviation emerged as the top loser, falling 3.63%, followed by Larsen & Toubro, which declined 2.88%. Other major losers included HDFC Bank, Kotak Mahindra Bank and ICICI Bank, which fell up to 2.13%.
1 April 2026
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On the gaining side, stocks such as Bharat Electronics, NTPC and TCS rose up to 1.39%.
Sectorally, the Nifty Bank index declined 1.58% to close at 54,821.70, while the Nifty Auto index slipped 0.39%. Broader markets showed mixed trends, with the Nifty Midcap index gaining 0.3% and the Smallcap index ending flat.
Among individual stocks, Ola Electric Mobility surged 20%, while Apollo Micro Systems, ITI and Sterlite Technologies gained up to 11-12%. On the downside, Prime Focus, Le Travenues Techno, SML Mahindra and Vishal Mega Mart declined over 4%.
The Indian rupee also weakened slightly, ending at 92.66 per US dollar compared to 92.58 in the previous session.
Morgan Stanley Sees Strong Upside Ahead
Despite the near-term correction, Morgan Stanley remains bullish on Indian equities, citing improving earnings momentum and attractive valuations.
The brokerage has set a base-case target of 95,000 for the Sensex by December 2026, implying a potential upside of around 22% from current levels. It noted that the current market environment, marked by cautious investor positioning and subdued valuations, resembles conditions typically seen near the end of market corrections.
Morgan Stanley highlighted that high-frequency indicators point to strengthening trends across consumption, investment and services, suggesting a revival in India’s earnings cycle.
It also pointed out that India’s share in global corporate profits currently exceeds its index weight by the widest margin on record, indicating a disconnect between fundamentals and market valuations.
The brokerage expects positive earnings revisions going forward and maintains that the current phase presents a compelling entry opportunity for long-term investors, with limited downside risks relative to potential gains.
