The Nifty Chemicals index experienced a significant decline of 3.44%, closing at 24,899.80. This selloff was triggered by the Indian government's decision to waive import duties on a variety of petrochemical products, including methanol, PVC, styrene, and acetic acid, until June 30, 2026. Key stocks that suffered included Swan Energy, which fell 5.61%, and SRF, declining 5.53%. The government's move aims to alleviate supply disruptions caused by ongoing conflicts in the Middle East and to reduce input costs for downstream industries. However, this policy could lead to increased competition for domestic chemical manufacturers, as cheaper imports may flood the market, particularly in commoditized segments. With global supply chains remaining volatile and crude-linked input costs still high, investors are adjusting their earnings expectations for the sector, reflecting concerns over potential margin pressures.