Indian markets faced significant pressure on Monday, March 23, with several major stocks experiencing declines due to escalating geopolitical tensions in West Asia and specific corporate developments. Airlines IndiGo and SpiceJet saw sharp falls as crude oil prices surged, while IDBI Bank and Hindustan Zinc also recorded losses. In contrast, Vedanta announced its third interim dividend for the financial year.
Aviation Sector Faces Severe Headwinds
Indian airline stocks experienced a sharp downturn on Monday. InterGlobe Aviation, the parent company of IndiGo, saw its shares plunge by as much as 8.4% during the day, hitting an intraday low of ₹3,894.80. IndiGo's stock has declined more than 18% since the beginning of the US-Iran conflict, largely due to rising jet fuel prices. The airline implemented a fuel surcharge effective March 14, 2026, to partially offset these increasing costs. IndiGo also adjusted its Middle East flight network between March 16 and March 28, 2026, operating 252 weekly flights to and from the region.[multibagg+1]
SpiceJet faced even greater pressure, with its shares crashing 10% to hit the lower circuit at ₹10.85, marking a new 52-week low. The airline's stock has been on a persistent downtrend, registering losses for eight consecutive sessions and declining by 27.76% over this period. Both airlines are highly sensitive to crude oil price volatility, as Aviation Turbine Fuel (ATF) constitutes a significant portion of their operating expenses. Experts anticipate further ATF price hikes, revised monthly, which will likely impact costs starting April 1.[marketsmojo+3]
Banking Sector Sees Mixed Fortunes
IDBI Bank shares came under sharp selling pressure on Monday, falling more than 4.5% to an intraday low of ₹69.58 on the National Stock Exchange. The decline followed reports that the government might consider divesting a portion of its stake via an Offer-for-Sale (OFS). Thiscomes after an earlier attempt in March to sell a 60.72% majority stake, held jointly by the government and LIC, was scrapped because financial bids from two potential buyers reportedly fell short of the reserve price. IDBIBank's public float currently stands at a low 5.29%.[financialexpress+3]
Manappuram Finance shares also dipped on March 19, 2026, after its subsidiaries received approvals from the Reserve Bank of India (RBI) for Bain Capital's indirect control as part of a ₹4,385 crore deal. The capital infusion is expected to be completed by March 31, 2026. Bain Capital will hold between 18% and 41.66% stake, becoming a joint promoter. Earlier in March, the RBI imposed a monetary penalty of ₹2.70 lakh on Manappuram Finance for non-compliance with guidelines on deferring variable pay for key managerial personnel for FY 2024-25, though this is not expected to materially impact financials.[financialexpress+3]
Infrastructure and Metals Under Pressure
Larsen & Toubro (L&T) shares declined on Monday, touching an intraday low of ₹3,306.9, down 3.72% from its previous close. The engineering and construction major has seen its shares fall nearly 22% in the current month. This downturn is largely attributed to escalating geopolitical tensions in West Asia, a region from which L&T derives over 35% of its revenue. Despite this, L&T management stated that 95% of its project sites in West Asia remain unaffected, and the company does not anticipate an immediate impact on revenues. However, it acknowledged potential revenue deferment if logistical and supply chain disruptions persist beyond three months. L&T remains open to future partnerships with Chinese firms, especially for energy transition projects.[marketsmojo+5]
Vedanta Limited announced its third interim dividend of ₹11 per equity share for the financial year 2025-26 on Monday, March 23, amounting to approximately ₹4,300 crore. The record date for this dividend is set for Saturday, March 28, 2026. Despite this announcement, Vedanta shares experienced a notable decline on Monday, touching an intraday low of ₹644.2, a 4.22% drop. This fall tracked a broader market sell-off and a decline in precious metals prices.[angelone+7]
Hindustan Zinc shares also fell sharply on Monday, dropping nearly 6% to an intraday low of ₹484. The decline was driven by overall market weakness and a significant drop in silver prices, which fell below ₹2,00,000 per kg on the MCX. The stock has corrected by nearly 40% from its 52-week high of ₹733 reached in January 2026. Hindustan Zinc recently announced a strategic partnership with Tata Steel to integrate EcoZen, a low-carbon zinc solution, into sustainable steel manufacturing processes.[livemint+6]
Oil and Gas Sector Navigates Volatility
Oil & Natural Gas Corporation Ltd. (ONGC) was one of the most actively traded stocks by value on March 23, 2026, demonstrating resilience despite a broadly negative market. MarketsMOJO upgraded ONGC's Mojo Grade from "Hold" to "Buy" on March 19, 2026, reflecting improved confidence in its prospects. ONGC has benefited from rising crude oil prices, which surged after US and Israel strikes on Iran in early March, sparking fears of oil supply disruptions. The company has a highdividend yield of 5.19%.[marketsmojo+2]
Oil India Limited hasalso seen double-digit gains in 2026, outperforming the Nifty Oil & Gas index. Experts anticipate further upside for upstream oil producers like Oil India due to the escalating Iran-Israel crisis and potential crude oil price hikes.[marketsmojo+1]
Hindustan Petroleum Corporation Ltd. (HPCL) plunged to a fresh 52-week low of ₹318.6 on March 23, 2026, marking a significant divergence from the broader market rally. The stock opened sharplylower by 2.8% and extended losses, down 5.25% on the day. HPCL, along with other downstream oil marketing companies, has faced intense strain from surging crude oil prices. MarketsMOJO downgraded HPCL's Mojo Grade from "Buy" to "Hold" on March 2, 2026. Despite the share price decline, HPCL reported strong financial results for recent quarters, with net sales reaching a record ₹1,15,153.20 crore and profit after tax surging by 260.86% for the nine months ended.[m+5]
Tata Capital Addresses Tax Demand
Tata Capital shares were in focus on Monday after the company announced it received a tax demand of ₹413.18 crore from the Income Tax Department. The demand pertains to the financial year 2017-18 and was issued through a reassessment order on March 20, 2026. Tata Capital stated that thedemand is based on calculation mistakes, specifically an alleged short credit of taxes paid and certain disallowances. The company believes the entire demand is not valid and plans to file a rectification application and potentially appeal the order, expecting no material financial impact.[businesstoday+4]
Overall, Indian markets on March 23 saw a complex interplay of geopolitical events, commodity price movements, and company-specific news. While some sectors faced significant headwinds, other companies continued to deliver shareholder value through dividends or demonstrate resilience amidst volatility.[businesstoday+1]
