Why Nifty and Sensex Down Today? Iran Crisis, $100 Crude Oil & FII Shorts Crash Indian Markets on March 13, 2026

Indian equity markets kicked off Friday, March 13, 2026, in panic mode as both the BSE Sensex and NSE Nifty 50 tumbled sharply at open. The Sensex tanked 661 points to 75,373 right after the opening bell, while the Nifty 50 fell over 200 points to 23,437 in initial trade. News24 By mid-morning, losses deepened further with the Nifty trading 1.18% down at 23,366 and the Sensex down over 766 points at 75,267. Business Standard This is the third consecutive session of losses and comes on an ominous date — Friday the 13th.

#1 — Iran-Israel War: Hormuz Threat Shakes Global Markets

The single biggest trigger for today's crash is the geopolitical crisis in West Asia. Iran's Supreme Leader Mojtaba Khamenei issued a statement saying the Strait of Hormuz must remain shut, in his first public statement aimed at increasing pressure on enemy forces. Business Standard This has dramatically escalated fears of a prolonged conflict — much like the Russia-Ukraine war, which was initially expected to last days but has dragged on for years. As per the research transcript shared by our analyst, Iran is showing no signs of backing down, making this a potential "status quo war" that keeps markets on edge indefinitely.

#2 — Crude Oil Crosses $100 — A Body Blow for India

The global oil benchmark Brent crude surged past $100 per barrel, driven by escalating Middle East tensions. News24 For India — the world's third-largest oil importer — this is a double blow: higher import bills, a weakening rupee, and renewed inflation risks. Banking and auto stocks are facing particular heat as rising crude raises the probability of prolonged high interest rates. News24

#3 — Bearish F&O Data: Call Writing & FII Shorts

Thursday's F&O data was a clear warning. Heavy call writing was seen at 23,600 and 23,700 strikes, signalling strong overhead resistance. At the same time, put writing at 23,000 and 23,600 built a floor, but the put-call ratio rising due to excess put writing indicates net bearish sentiment. FII net short positions in Nifty futures exceeded ₹2,800 crore, and Nifty Bank shorts crossed ₹140 crore — a clear institutional bet against the market. The overall market short position has climbed to around 10.6%.

#4 — India VIX Spikes, Rupee Weakens

India VIX, the fear gauge, spiked over 4% to cross the 21 mark, signalling deep uncertainty. Business Standard A weaker rupee and negative global cues compounded the selling pressure, making this the third straight session of decline. News24 Mid-cap and small-cap stocks saw the sharpest corrections as investors moved to "cash is king" mode.

#5 — Weekly Expiry Pressure

Being a Friday and weekly options expiry day, traders are avoiding carrying overnight positions amid geopolitical uncertainty. This is causing additional unwinding pressure across all segments, keeping the market in a downward spiral through the session.

Key Levels to Watch: Immediate support for Nifty sits at 23,210–23,300. Analysts peg 24,000–24,100 as a strong ceiling for any recovery attempt, while Nifty is currently placed below its 5, 11, and 20-day EMAs with RSI in falling mode below 40. Business Standard

⚠️ Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Markets are subject to risk. Please consult a SEBI-registered financial advisor before making any investment decisions.