Why is the stock market in turmoil? Sensex plummets by more than 750 points, wiping out 6 lakh crore rupees for investors.:The total market capitalization of companies listed on BSE, which was Rs 458.5 lakh crore in the last session.

News Topical, Digital Desk : The Indian stock market witnessed another major turmoil on the last trading day of the week amid continued selling by foreign institutional investors (FIIs) and growing geopolitical uncertainties. Caution ahead of the Union Budget and uncertainty surrounding corporate third-quarter results dampened investor sentiment. This had a direct impact on the market, with the BSE Sensex falling 0.94 percent, or 770 points, to close at 81,537.70. The NSE Nifty 50 also slipped 241 points, or 0.95 percent, to 25,048.65.

Why did the stock market crash?

Mid-cap and small-cap stocks were the hardest hit by this decline. The BSE Midcap Index fell nearly 1.6 percent, while the Smallcap Index recorded a massive decline of 2.2 percent. This clearly indicates that investors are rapidly withdrawing money from risky stocks and turning to safer options. The selling in small- and mid-cap stocks indicates that a sense of fear prevails in the market.

This massive market drop cost investors nearly ₹6 lakh crore in a single day. The total market capitalization of companies listed on the BSE fell from ₹458.5 lakh crore in the previous session to approximately ₹452 lakh crore. This means that assets worth lakhs of crores of rupees were wiped out from the market in just a few hours of trading.

Investors alert

Experts believe that FII selling, ongoing global tensions, a strengthening dollar, and uncertainty surrounding the budget and corporate results at home have combined to pressure the market. Until global cues become clearer and the budget picture becomes clearer, the market may remain volatile, and investors will remain cautious.