The Indian equity markets faced a significant downturn in afternoon trading, with the S&P BSE Sensex declining by 1,001.83 points, or 1.32%, to 75,013.45, while the Nifty 50 index fell by 287.85 points, or 1.20%, to 23,528.45. Contributing factors included a weakening Indian rupee, which traded at 95.7200 against the US dollar, and continued foreign fund outflows. Elevated crude oil prices also weighed on market sentiment, with Brent crude rising to $106.21 a barrel. The broader market underperformed, with the BSE 150 MidCap Index dropping 1.60% and the BSE 250 SmallCap Index falling 2.05%. IT stocks were particularly hard hit after OpenAI announced a new enterprise-focused AI initiative, leading to declines in major companies like HCL Technologies and Tata Consultancy Services. Economic projections indicate India's GDP growth may slow to 6.6% for FY27, raising concerns over inflation and the need for policy measures to stabilize the economy amid global uncertainties. European markets also mirrored these concerns, declining as hopes for a swift resolution to the U.S.-Iran conflict faded.