Pabitro Mukherjee, Associate Vice President, Technical Research at Bajaj Broking, said March 2026 has seen one of the largest monthly capital outflows in recent years.
“The primary catalyst for this large-scale withdrawal has been escalating geopolitical tensions in West Asia, which have heightened global uncertainty and risk aversion,” he said.
Mukherjee added that the intensity of risk aversion in recent weeks is comparable to the market turmoil witnessed during the Covid-19 pandemic in 2020.
Broad-based selling across sectors
The sell-off was widespread across sectors, with auto, FMCG, consumer durables, capital goods, realty, private banks and PSU banks declining between 2 and 4 per cent.
Among Sensex constituents, Bajaj Finance, State Bank of India, InterGlobe Aviation, Bajaj Finserv, Axis Bank and Kotak Mahindra Bank were among the major losers, while Power Grid was the only gainer.
A total of 3,563 stocks declined on the BSE, compared to 876 advances and 154 unchanged.
Monthly losses deepen
The downturn has extended through March, with the Sensex falling 9,339.64 points, or 11.48 per cent, since the start of the West Asia conflict on 28 February.
Analysts said continued geopolitical uncertainty, rising crude prices and persistent foreign fund outflows remain key risks for markets in the near term.