The sell-off was broad-based, with major sectors trading in the red. Banking and financial stocks were among the biggest losers. Shares of HDFC Bank, ICICI Bank, and State Bank of India declined significantly, dragging the indices lower.
Metal stocks also witnessed heavy selling pressure due to global growth concerns. Companies such as Tata Steel and JSW Steel were among the top laggards of the session.
In addition, oil-sensitive and infrastructure-linked stocks like Reliance Industries and Larsen & Toubro traded lower as rising crude prices raised cost concerns.
The market downturn was triggered by escalating geopolitical tensions in the Middle East, which pushed crude oil prices above $110 per barrel. This sparked fears of higher inflation and increased import costs for India, putting pressure on both equities and the currency.
Foreign institutional investors (FIIs) continued their selling streak, further weighing on market sentiment. The outflow of foreign funds has been a key factor behind the sustained weakness in Indian equities in recent sessions.
However, some defensive stocks managed to hold ground. FMCG and pharmaceutical companies showed relative resilience, with names like Hindustan Unilever and Sun Pharmaceutical Industries trading with mild gains or limited losses. These sectors typically perform better during uncertain market conditions.
Broader markets also mirrored the weakness, with mid-cap and small-cap stocks declining sharply, indicating widespread selling pressure across the board.