Stock Market Crash: With Dalal Street in ruins, the M-cap of BSE-listed businesses plummets by around ₹10 trillion.
Sensex Crash Today: Investor wealth was virtually wiped out as the Indian stock market saw its greatest intraday decline in two months. This drop was caused by recent regulatory reforms, increased crude oil prices, and geopolitical concerns.
The Indian stock markets had their most severe intraday decline in the past two months on Thursday, depleting investors’ wealth by over ₹9.78 trillion. The market value of all businesses listed on the BSE plummeted to ₹465 trillion from ₹474 trillion on Tuesday.
Over the course of the day, the Indian benchmark indexes saw a fall of over 2%, and the total market capitalization fell as much as ₹10.5 trillion.
What Caused Sensex Crash?
With tensions in the Middle East rising and the dispute between Iran and Israel intensifying, the major market indexes, the Sensex and the Nifty, fell precipitously today. The Nifty 50 finished at 25,250, down 547 points or 2.12%, while the Sensex closed at 82,497, down 1,769 points or 2.10%. Both indexes fell for the fourth day in a row, losing more than 3.5% of their value.
In addition to geopolitical worries, other elements that have contributed to the current stock market meltdown include an increase in the price of crude oil, modifications made by market regulator SEBI to the F&O segment’s regulations, and withdrawals by foreign institutional investors.
Crude oil prices spiked after Iran fired 180 ballistic missiles toward Israel. From $71 per barrel on Monday, the price of Brent crude surged to $75 per barrel. There is growing speculation that Israel would attack Iran’s main oil reserves in retaliation, which would drive up oil prices even further. This is not good news for India, which gets 80% of its old needs from imports. India’s import cost might go up with any significant increase in oil prices.
In addition, Sebi’s recent regulatory reforms in the F&O market are also anticipated to have an effect on trading volumes, as the larger contract sizes and weekly expiry limitations may discourage retail involvement.
likewise on October 1st, foreign portfolio investors (FPIs) sold stocks valued at ₹5,579.35 crore, marking the third consecutive day of sales. According to Siddhartha Khemka, head of research at Motilal Oswal Financial Services’ Wealth Management division, stock-specific trading may occur in the near future when the firms provide their pre-quarterly updates.
With 1,107 stocks closing in the green and 2,881 stocks closing in the red on the BSE, the market trend was favoring losses.
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