Indian equity markets extended their downturn for a fourth consecutive session on Thursday, with major indices slipping to one-week lows as investor sentiment remained fragile.
The broad-based selling pressure was driven by escalating geopolitical tensions in the Middle East, which have reignited concerns over supply disruptions and rising energy costs.
Brent crude prices faced upward pressure as hostilities in the region intensified, creating a headwind for import-dependent economies like India.
The rising cost of energy inputs is likely to weigh on corporate margins and inflation expectations, prompting traders to reduce risk exposure across equity portfolios.
The market move reflects a repricing of geopolitical risk rather than a reaction to domestic fundamentals.
Selling was particularly acute in the energy and banking sectors, which are highly sensitive to oil price volatility and macroeconomic uncertainty.