The Indian stock market on Tuesday, October 22, experienced a significant selloff, causing the benchmark indices, Sensex and Nifty 50, to decline by more than one percent each.
The mid and small-cap segments faced even greater declines, with the BSE Midcap and Smallcap indices falling by as much as 4 percent.
The total market capitalization of companies listed on the BSE dropped to nearly ₹444.7 lakh crore, down from approximately ₹453.7 lakh crore in the previous session, resulting in a loss of about ₹9 lakh crore for investors in just one day.
Why is the share market down today?
Experts point to several reasons for the market’s decline, including rising geopolitical tensions, uncertainty about the 2024 US elections, and ongoing selloffs by foreign portfolio investors (FPIs), which are all affecting market sentiment. Additionally, weak earnings for the September quarter and high valuations in the Indian stock market are also contributing to the downward trend.
Tensions in the Middle East
Tensions in the Middle East remain high, leaving investors anxious. A Reuters report states, “Hezbollah announced it fired rockets at two bases near Tel Aviv and one west of Haifa on Tuesday morning, just hours before US Secretary of State Antony Blinken arrived in Israel to advocate for a ceasefire.”