Indian Stock Market Suffers Massive Blow
The domestic equity market experienced a severe jolt as trading kicked off for the month of October. Both benchmark indices opened on a sluggish note, but selling pressure intensified rapidly as the day progressed, turning the trading floor into a sea of red.
During the intra-day trade, the BSE Sensex plummeted over 1,200 points to touch 71,292.88, marking a fresh 52-week low. Simultaneously, the NSE Nifty crashed around 400 points, slipping close to the crucial 22,200 mark and triggering panic among retail investors.
Massive Wealth Erasure for Investors
The steep market correction wiped out massive wealth in a matter of hours. The total market capitalization of BSE-listed firms eroded significantly, with investors losing over Rs 10 lakh crore at the peak of the crash.
Heavyweight counters across sectors, including auto, metal, and banking, witnessed intense profit booking and panic selling. Maruti Suzuki, Mahindra & Mahindra, and Tata Steel were among the worst hit during the session.
Key Factors Behind the Selloff
Market analysts attribute the sharp downturn primarily to relentless selling by foreign institutional investors (FIIs), surging US Treasury yields, and a weakening rupee. The massive outflow of foreign capital has severely impacted market sentiments in recent sessions.
Despite a sharp late recovery in the final hour driven by value buying at lower levels, the indices managed to close in the negative zone, with the Sensex settling down 570.59 points at 71,909.70.
