Energy Shock Triggers Global Asset Selloff in March 2026

A global energy shock in March 2026, stemming from disturbances in the Strait of Hormuz, triggered a synchronized selloff across global asset classes. Crude oil prices surged 52 percent, accelerating global inflation and forcing central banks to keep interest rates high. This volatility led to sharp declines in international indices, with South Korea's KOSPI falling over 19 percent and Japan's Nikkei dropping more than 13 percent.

In India, the Nifty 50 declined by 11.3 percent. While Foreign Institutional Investors withdrew a record ₹1.22 lakh crore, Domestic Institutional Investors countered this trend with inflows of ₹1.43 lakh crore. Despite the volatility, Indian industrial production grew by 5.2 percent, and inflation stayed within the Reserve Bank of India's target range.

Siddharth Vora, Head of Quant Investment Strategies and Fund Manager at PL Asset Management, characterized the event as a liquidity-driven, macro-led correction rather than a fundamental reset. He noted that the situation reflected a late-stage correction driven by forced deleveraging amid an energy shock and tightening financial conditions, rather than the start of a prolonged downturn.