_edited.png)
BSE market capitalisation drops 13 lakh crore as crude oil rises above 117 dollars
Indian equity markets witnessed a sharp selloff as Brent crude surged past $117 per barrel amid escalating geopolitical tensions in the Middle East. The total market capitalisation of BSE listed firms declined by around ₹13 lakh crore in a single session. The correction highlights rising macro risks linked to higher energy prices, inflation concerns, and foreign investor outflows.
By Finblage Editorial Desk
11:14 am
9 March 2026
Indian equity markets recorded a sharp decline on March 9 as a surge in global crude oil prices triggered broad based selling across sectors. The total market capitalisation of companies listed on the Bombay Stock Exchange fell by more than ₹13 lakh crore to around ₹436.7 lakh crore, marking the steepest decline since April 2025 and pushing valuations to a ten month low.
The selloff followed a sharp spike in oil prices amid escalating geopolitical tensions in the Middle East. Brent crude climbed above $117 per barrel for the first time since 2022 as the conflict involving the United States Israel alliance and Iran showed no immediate signs of easing. Investors globally shifted toward safe haven assets such as the US dollar, weighing on emerging market equities.
The broader correction in Indian markets has intensified over the past two weeks. Since February 24, the total market capitalisation of BSE listed companies has eroded by more than ₹35 lakh crore. During the same period, benchmark indices Sensex and Nifty have declined around 7.5 percent each, reflecting persistent selling pressure across sectors.
Broader markets have also weakened alongside benchmark indices. The BSE MidCap index has declined about 5.5 percent while the BSE SmallCap index has dropped roughly 6.5 percent during the recent correction. Foreign institutional investors have turned net sellers, offloading more than $1 billion worth of Indian equities amid rising global risk aversion.
Domestic institutional investors have provided partial support to the market during the downturn. Mutual funds, insurance companies, banks and pension funds collectively invested more than ₹58,000 crore in equities during the correction phase, helping stabilise liquidity conditions.
Market strategists note that crude oil prices above the $100 per barrel level historically exert downward pressure on Indian equities due to the country’s heavy dependence on imported energy. Investors will closely track crude price movements, geopolitical developments in West Asia, and foreign fund flows as key drivers of near term market direction.
Sources & Disclaimer
This article is compiled from publicly available information, including company disclosures, stock exchange filings, regulatory announcements, and reports from global and domestic financial publications. The content has been editorially reviewed and enhanced by the Finblage Editorial Desk for clarity and investor awareness purposes only.
All information provided on Finblage is strictly for educational and informational use and should not be considered as financial, investment, legal, or professional advice. Readers are advised to conduct their own independent research and consult a certified financial advisor before making any investment decisions. Finblage shall not be held responsible for any losses arising from the use of information published on this website.
Premium Edition
Insight
India's 2026 Monsoon : When the Rain Becomes a Risk
After two consecutive years of above-normal rainfall, India faces a significantly weaker 2026 southwest monsoon, with meteorological agencies forecasting rainfall at around 90% of the Long Period Average amid rising El Niño risks. A deficient monsoon could weigh on agricultural output, rural incomes, food inflation, and overall economic growth, while creating sector-specific winners and losers across the equity market.
5 July 2026
