The Indian equity markets faced significant losses in afternoon trading, with the S&P BSE Sensex declining by 735.10 points (0.93%) to 78,538.23 and the Nifty 50 index falling 181.55 points (0.74%) to 24,395.80. Investor sentiment was dampened by geopolitical tensions following Donald Trump's announcement of an extended ceasefire in the West Asia conflict, leading to uncertainty about the ceasefire deadline. Despite the downturn in major indices, the broader market outperformed, with the BSE MidCap Index rising 0.24% and the BSE SmallCap Index increasing 0.79%. The market breadth remained positive, with 2,349 shares advancing compared to 1,777 that declined.

In economic news, Moody's downgraded India's FY27 GDP growth forecast to 6% from 6.8%, citing weak consumption and rising energy costs due to ongoing tensions in the Middle East. This could lead to increased inflation and pressure on government subsidies. Notably, the NSE's India VIX, indicating market volatility, rose 4.39% to 18.30. Major gainers included Tata Consumer Products and Hindustan Unilever, while HCL Technologies and Tech Mahindra were among the biggest losers.