Mumbai: Investor wealth eroded by ₹7.17 lakh crore over three consecutive sessions as Indian equity markets remained under pressure, with the BSE Sensex falling more than 3 per cent amid rising geopolitical tensions in West Asia.

The 30-share benchmark declined by 2,609.12 points, or 3.29 per cent, over the three-day period. On Friday alone, the index dropped 999.79 points, or 1.29 per cent, to close at 76,664.21, after plunging as much as 1,260.13 points during intra-day trade.

The overall market capitalisation of firms listed on the Bombay Stock Exchange fell sharply by ₹7,17,476.54 crore, taking the total valuation down to ₹4,61,49,758.18 crore (USD 4.89 trillion).

Market sentiment was weighed down by escalating tensions in West Asia, particularly around the Strait of Hormuz, raising concerns about potential disruptions to global oil supplies. The uncertainty has pushed Brent crude prices above USD 106 per barrel, intensifying inflationary pressures for oil-import-dependent economies like India.

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According to Hariprasad K, the surge in crude prices could lead to higher inflation, currency volatility, and margin pressures across sectors.

The IT sector emerged as the biggest drag on the market, following weak earnings and subdued forward guidance. Shares of Infosys plunged 7.09 per cent after its revenue growth forecast for FY27 fell short of market expectations. Other major laggards included HCL Technologies, Tata Consultancy Services, Tech Mahindra, Sun Pharma, Asian Paints, and ICICI Bank.

On the other hand, select stocks such as Trent, State Bank of India, Bajaj Finance, Kotak Mahindra Bank, and HDFC Bank managed to post gains.

Ankur Punj said the lack of progress in peace talks between Iran and the United States, coupled with mixed earnings from domestic IT companies, contributed to the broad-based sell-off. He also highlighted the weakening of the Indian rupee, rising foreign institutional investor (FII) outflows, and firm crude oil prices as key factors dampening investor sentiment.

Broader markets mirrored the weakness, with the BSE SmallCap Select index falling 0.95 per cent and the MidCap Select index slipping 0.91 per cent.

All sectoral indices ended in the red. The BSE IT index dropped sharply by 5.13 per cent, followed by declines in Focused IT, healthcare, telecommunications, realty, services, and consumer discretionary sectors.

Market breadth remained negative, with 2,905 stocks declining, 1,326 advancing, and 158 remaining unchanged on the exchange.