Sensex Sinks Nearly 1,000 Points; Investor Wealth Erodes by Rs 10 Lakh Crore Amid Geopolitical Tensions
Ketaan Ram Kataria
Patna : The Indian stock market experienced a significant downturn, with the BSE Sensex plunging over 1,000 points during intraday trading. The Nifty 50 also declined sharply, falling below the 24,000 mark. This steep decline led to a substantial erosion of investor wealth, amounting to approximately Rs 10 lakh crore.
The market’s decline was broad-based, affecting major sectors including banking, automotive, metals, and information technology. Analysts attribute this sell-off to a combination of factors:
- Geopolitical Tensions: A recent militant attack in Kashmir, resulting in 26 civilian casualties, has heightened tensions between India and Pakistan. The Indian government’s potential response, including downgrading diplomatic ties and suspending the Indus Water Treaty, has added to investor anxiety.
- Global Trade Concerns: Escalating trade disputes, particularly involving the United States, have led to increased market volatility worldwide.
All 13 major sectoral indices on the NSE traded in the red, with small-cap and mid-cap indices witnessing significant losses of 2.6% and 2%, respectively.
Investors are now closely monitoring geopolitical developments and upcoming corporate earnings reports to gauge the market’s trajectory in the near term.
