The sell-off has not spared largecaps, midcaps or smallcaps, with companies across sectors witnessing steep declines.
Stocks such as Infobeans Technologies, Aqylon Nexus, SEPC, Rain Industries and Rajesh Exports have fallen between 23% and 40% during this period, according to Ace Equity data. Infobeans Technologies has dropped over 40%, while Aqylon Nexus has fallen more than 30%. Engineering and infrastructure firm SEPC is down about 29%, while Rain Industries and Rajesh Exports have slipped more than 24% and 23%, respectively.
Several midcap and smallcap technology and services firms have also seen heavy losses. KS Smart Technologies has declined over 23%, while Network People Services Technologies has fallen around 23%. Deccan Gold Mines and Capacit’e Infraprojects are down more than 21% each.
The sell-off has extended well beyond smaller companies. A number of prominent largecap names have also posted steep declines. Shares of Larsen & Toubro, Ashok Leyland, Amber Enterprises, IDBI Bank and Birla Corporation have fallen between 19% and 22% since the conflict escalated.
Automobile and auto component companies have also been under pressure. Lumax Industries, Rico Auto Industries, Jamna Auto Industries and Lumax Auto Technologies have all dropped between 18% and 20%. Consumer-facing companies such as Easy Trip Planners and Ethos have also seen sharp declines.
Financial stocks have not been immune either. Several banks and financial institutions including City Union Bank, IndusInd Bank, IDFC First Bank, Bank of India and UCO Bank have registered losses ranging between 14% and 18%. NBFCs such as Ugro Capital and Fusion Finance have also witnessed significant declines.The fall has also spread to marquee blue-chip stocks. UltraTech Cement, Eicher Motors, Maruti Suzuki, Godrej Consumer Products and Bajaj Finance are down between 14% and 16%. Metal, energy and commodity companies such as Indian Oil Corporation, Bharat Petroleum, Tata Steel and GAIL have also slipped between 13% and 17%.
Overall, the data highlights how the correction has been broad-based across sectors including financials, autos, engineering, technology, consumer goods and energy.
Worst monthly fall since the pandemic
The steep decline in individual stocks comes amid one of the worst monthly performances for Indian equities since the Covid pandemic. The benchmark Nifty has already fallen nearly 8% in March 2026 so far, making it the second sharpest monthly decline in the last decade. During the peak of the Covid crisis in March 2020, the index had dropped about 23%.
The broader market has also seen deep cuts. The BSE Sensex has lost nearly 4,000 points over the past week alone, while the Nifty has dropped about 5% in just five trading sessions.
Midcap and smallcap stocks have been hit particularly hard. On Friday, the Nifty midcap index fell 4.59% while the smallcap index dropped 3.66%, reflecting widespread selling across the broader market.
Iran conflict driving global risk aversion
The ongoing conflict involving Iran has emerged as the central trigger behind the recent market turbulence. Escalating tensions between Iran and Western allies have intensified fears of disruption in global energy supplies. As the conflict deepens, crude oil prices have surged sharply, with Brent crude hovering close to $100 per barrel.
This is particularly concerning for India, which imports nearly 85% of its crude oil requirements. Any disruption in the Strait of Hormuz, a key shipping route through which a significant portion of India’s oil imports pass, could have major implications for the country’s energy security and macroeconomic stability.
Higher crude prices could lead to rising inflation, pressure on corporate profit margins and a widening current account deficit. These factors tend to weigh heavily on investor sentiment in emerging markets such as India.
Heavy foreign selling adding to pressure
The sell-off has been further intensified by heavy foreign institutional investor outflows. Foreign investors have sold nearly Rs 50,000 crore worth of Indian equities so far this month, adding significant pressure on largecap stocks and benchmark indices.
With global investors shifting toward safer assets amid rising geopolitical uncertainty and higher US bond yields, emerging markets have seen capital outflows. This has also contributed to weakness in the rupee and further dampened market sentiment.
IT sector concerns adding to volatility
Beyond geopolitical tensions, structural concerns in certain sectors have also contributed to the market weakness. The rapid global adoption of artificial intelligence has raised questions about the near-term growth outlook for India’s IT services sector. Investors are reassessing demand visibility for outsourcing services, which has weighed on technology stocks in recent months.
Combined with the broader risk-off environment, this has amplified selling pressure across the market.
Outlook remains uncertain
Analysts expect volatility to remain elevated in the near term as geopolitical developments continue to drive sentiment. Vinod Nair, Head of Research at Geojit Investments, said market direction is likely to remain dominated by developments related to the Israel and US conflict with Iran and the trajectory of crude oil prices.
He noted that elevated crude prices could affect inflation, corporate margins, the current account balance and the policy flexibility available to the Reserve Bank of India.
“A firm dollar and higher US yields may keep FIIs selective and volatility elevated. Selective value opportunities should persist in fundamentally resilient and domestically anchored themes, while energy-sensitive pockets may stay pressured if oil remains elevated,” he said.
According to him, a sustained recovery in the market will likely require clear signs of geopolitical de-escalation, stabilisation in crude oil prices and greater clarity on energy supply conditions.
Technical signals remain weak
Technical indicators also suggest the market remains under pressure. Ajit Mishra, Senior Vice President of Research at Religare Broking, said immediate support is seen around the 22,900 level, and a breach of this zone could push the index toward 22,500 and potentially 22,000.
On the upside, the 23,800 to 24,300 range is expected to act as a strong resistance zone.
Strategy for investors
Given the heightened geopolitical risks and sustained surge in crude oil prices, analysts recommend a cautious approach in the near term.
Ravi Singh, Chief Research Officer at Master Capital Services, said the Nifty has decisively broken its key 23,800 support level and is currently trading at a fresh 10-month low. He said the 23,000 level now represents an important psychological support zone. If this level is breached, the index could slide further toward 22,800 and 22,500.
Until the index manages to reclaim the 24,000 mark decisively, Singh believes the prevailing strategy should remain to sell on rallies.
Market experts also advise investors to avoid aggressive leverage and maintain strict risk management in the current volatile environment.
Data: Ritesh Presswala
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)