The selloff was sharp across the board. Among the key losers, Swan Energy fell 5.61%, SRF declined 5.53%, Navin Fluorine International dropped 4.79%, Coromandel International slipped 4.27%, PCBL lost 3.70%, Gujarat Fluorochemicals was down 3.55%, PI Industries fell 3.54%, Himadri Speciality Chemical declined 3.31%, Deepak Fertilisers and Petrochemicals Corporation slipped 3.21%, Deepak Nitrite fell 3.07%, Aarti Industries declined 3.05%, UPL dropped 2.94%, Bayer Cropscience fell 2.77%, Solar Industries India declined 2.73%, Sumitomo Chemical India slipped 2.03%, Pidilite Industries fell 2%, Linde India declined 1.92%, Atul dropped 1.83%, Chambal Fertilisers and Chemicals fell 1.67%, while Tata Chemicals was down 1.62%.

The trigger for the selloff was the Centre's decision to temporarily remove import duties on key petrochemicals such as methanol, PVC, styrene and acetic acid till 30 June 2026. The ‌government also exempted ammonium nitrate from ⁠the Agriculture Infrastructure and Development Cess for the same period.

The move is aimed at easing supply disruptions caused by the Middle East conflict and cooling input costs for downstream industries.

However, for domestic chemical manufacturers, the policy brings a near-term overhang. Cheaper imports could intensify competition, especially in commoditised segments.

With global supply chains still volatile and crude-linked inputs elevated, investors appear to be recalibrating earnings expectations for the sector.