FX.co ★ Sensex Drops to Near 1-Year Low

India’s BSE Sensex fell about 0.8% to below 75,416 on Friday, its third consecutive session of losses and the lowest level since April 2025. The benchmark is down 4.4% for the week and is on track for its steepest weekly decline since late 2024.

The downturn reflects ongoing geopolitical tensions stemming from the US–Israel conflict with Iran and a sharp rise in oil prices, which have heightened concerns about accelerating inflation, a widening fiscal deficit, and slower economic growth. Foreign investors sold roughly $49 billion of Indian equities in March, marking the largest monthly outflow since January 2025.

India’s inflation rate also climbed to an eleven‑month high of 3.21% in February, up from 2.74% in January and above market expectations of 3.1%. The increase largely reflects a normalization from last year’s unusually low, food-driven readings.

Most sectors traded in negative territory. Notable laggards included Larsen & Toubro (-2%), Hindalco Industries (-1.9%), HDFC Bank (-1.6%), Infosys (-1.3%), and ICICI Bank (-1.2%).