Indian stock market takes a sharp downturn, wiping out ₹6 lakh crore of investor wealth. Sensex and Nifty 50 plunge nearly 1% amid rising volatility and global uncertainty.

The Indian stock market faced a notable decline on Friday, October 25th, 2024, as both benchmark indices, the Sensex and the Nifty 50, fell by nearly 1%. This broad sell-off impacted various segments of the market, with the mid-cap and small-cap indices experiencing even steeper declines.

Market Performance and Investor Losses

The Sensex dropped 663 points, or 0.83%, to close at 79,402.29, while the Nifty 50 declined 219 points, or 0.90%, to end at 24,180.80. The BSE Midcap and Smallcap indices fell 1.48% and 2.44%, respectively. This decline translated to a significant loss in market capitalization, with investors collectively losing around ₹6 lakh crore in a single day.

Volatility and Recent Trends

The India VIX, a measure of market volatility, surged by nearly 5% to 14.63, reflecting growing nervousness among investors. This marked the fifth consecutive session of losses for both the Sensex and the Nifty 50. Over the week, the Sensex fell 2.2%, and the Nifty 50 dropped 2.7%.

Distance from All-Time Highs

Both the Sensex and the Nifty 50 are now approximately 8% below their all-time highs, reached on September 27th, 2024. The Sensex peaked at 85,978.25, while the Nifty 50 reached 26,277.35.

Factors Contributing to the Decline

Several factors contributed to this market downturn, including:

Foreign fund outflows: Sustained selling by foreign institutional investors (FIIs) has weighed heavily on market sentiment.
Muted earnings growth: Many companies have reported disappointing quarterly results, failing to meet market expectations.
Global uncertainties: Rising global interest rates, geopolitical tensions, and concerns about the upcoming U.S. elections have created a risk-averse environment.
Profit booking: After a strong rally in previous months, some investors may be taking profits off the table.
Technical factors: The breach of key support levels may have triggered further selling pressure.

The Indian stock market is currently experiencing a period of volatility and uncertainty. While some investors may view this as a buying opportunity, others remain cautious due to the prevailing headwinds.

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Aditi Sharma

Aditi holds a Masters in Science degree from Rajasthan University and has 7 years under her belt. Her forward-thinking articles on future tech trends are a staple at annual tech innovation summits. Her passion for new tech trends ensures that our readers are always informed about the next big thing.