On Wednesday, the Sensex dropped more than 700 points and broke through the 73,000 mark. The Nifty also had a decline of more than 1%, but the suffering was severe on the smaller-equity end of the market. A slowdown is expected to be observed in the outstanding rise in the broader market. The smallcap index sank 5%, marking the largest single-day decline since December 2022 midcaps lost 3% and the microcap and SME stock indices fell almost 5% each.All equities listed on the BSE saw a decline in market capitalization of Rs 12 lakh crore, reaching Rs 374 lakh crore.Here are the top reasons why Sensex dropped today:Selling in broader marketsOne of the reasons contributing to the fall in the market is that the Market regulator Securities and Exchange Board of India (SEBI) has been scrutinizing flows into mid, and small-cap stocks amid a massive rally in the segment over the past few years.The National Stock Exchange Nifty Smallcap 100 Index slipped into correction territory on Tuesday. in simple words, a fall of 10% is termed as correction.Profit booking in large capsAccording to the sources, 26 Sensex stocks out of 30 and 46 Nifty stocks were under pressure on Wednesday. Tata Steel, ONGC, Titan, Hindalco, Bharti Airtel, L&T, Tata Consumer, Tata Motors, HUL, Hero MotoCorp, Axis Bank, IndusInd Bank, JSW Steel, Reliance Industries, Maruti Suzuki India, and Bajaj Auto were among the ones that declined in the range of 1% to 4%. Whereas PowerGrid, and Adani Enterprises dropped 6% each, Adani Ports slipped 5.5%, Coal India dropped 5.4%, and NTPC 5%. With all this, the market capitalization of all the BSE listed stocks slipped Rs 12 lakh crore and currently stands at Rs 374 lakh crore. It is also anticipated that the poor performance of some major companies contributed to the decline.
