In the wake of escalating tensions between Israel and Iran, the Indian stock market has witnessed a dramatic decline, resulting in a staggering loss of ₹5.62 lakh crore in market capitalization. According to Money Control, this downturn reflects widespread selling pressure, particularly in mid-cap and small-cap stocks.While American and European markets have shown signs of recovery, most Asian markets, including India, continue to face substantial selling pressure. The equity benchmark indices, Sensex and Nifty, have both succumbed to this market turmoil, with only the metal sector managing to remain in the green.As trading commenced, the BSE Sensex was recorded at 83,457.79, down 808.50 points, representing a decline of 0.96%. Similarly, the Nifty 50 index fell to 25,546.15, down 250.75 points, or 0.97%. Just a day earlier, the Sensex closed at 84,266.29, while the Nifty was at 25,796.90. This significant drop comes after the Nifty briefly surpassed the 25,250 mark last month, indicating a stark reversal in market sentiment.Continuous profit booking puts pressure on stocksAs investors grapple with the ongoing geopolitical strife, profit booking has characterized the trading sessions in India. On Tuesday, stock indices remained largely stable but ended the day marginally lower, marking the third consecutive decline. The Sensex closed at 84,266.29 points, down 33.49 points (0.04%), while the Nifty ended at 25,796.90 points, down 13.95 points (0.05%) on October 1.Among the Nifty 50 stocks, Tech Mahindra, Mahindra and Mahindra, Britannia, Infosys, and Adani Enterprises were the top gainers. In contrast, IndusInd Bank, ONGC, Asian Paints, Bajaj Auto, and Tata Steel suffered the most significant losses.The markets volatility is underscored by a significant drop of over 1,000 points in the Sensex during the previous session, illustrating the severe impact of global events on domestic equity markets, according to ANI.
