Domestic equity markets saw a sharp sell-off on Tuesday, with benchmark indices falling nearly 2% amid broad-based weakness across sectors and continued foreign investor selling.
The BSE , while the Nifty 50 dropped nearly 2%, slipping below the 22,300 mark.
The fall was widespread, with heavyweights across banking, infrastructure and consumption sectors dragging the indices lower.
Among key losers, State Bank of India fell over 3%, while HDFC Bank, ICICI Bank and Axis Bank declined around 1.5–2.5%.
Industrial and infrastructure stocks were also under pressure, with Larsen & Toubro falling over 3%. Adani Ports and Special Economic Zone and Adani Enterprises declined more than 3% each.
In the aviation space, InterGlobe Aviation dropped over 4%, reversing recent gains as rising fuel costs weighed on sentiment. Pharma stocks also saw sharp cuts, with Sun Pharmaceutical Industries falling nearly 5%.
IT stocks showed some resilience. HCL Technologies managed marginal gains, while Infosys and Tata Consultancy Services saw relatively limited declines.
The sell-off comes amid rising global uncertainty.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, market sentiment turned negative following remarks by Donald Trump signalling a possible escalation in the Iran conflict.
“We are going to hit Iran extremely hard in the next two to three weeks.”
Vijayakumar noted that Brent crude prices spiked around 5% to $105 per barrel, while the US 10-year bond yield rose to 4.36%, adding pressure on global markets. He also highlighted continued foreign portfolio investor (FPI) selling, with outflows of Rs 8,331 crore on April 1.
He added that high crude prices, a widening trade deficit, concerns over remittances and sustained FPI selling are putting pressure on the rupee, which continues to weaken despite RBI measures. At the same time, he cautioned that such geopolitical statements remain fluid and can change quickly.
He also pointed out that strong March auto sales could help keep auto stocks relatively resilient despite broader market weakness.
From a technical perspective, Anand James, Chief Market Strategist at Geojit Investments, said the Nifty’s inability to hold above 22,770 after a gap-up opening signals underlying weakness.
“Inability to hold above 22,770 points to underlying weakness.”
He expects the index to potentially test the 21,900 level, with 22,330 acting as a near-term support zone. However, a sustained move above 22,630 would be required to reverse the current trend.
Market breadth remained weak through the session, with selling pressure intensifying later in the day. Mid- and small-cap stocks also declined, reflecting a broader risk-off sentiment.
With global cues turning volatile and crude prices staying elevated, markets are likely to remain under pressure in the near term. Investor focus will remain on geopolitical developments, crude oil trends and foreign fund flows.