Market Shock: Sensex Dips 1,000 Points Amid Global Turmoil

Market Shock: Indian benchmark indices fell today (September 30) as the Sensex dropped by 1,000 points, and nifty falling below the 26,000 mark. The downturn was primarily driven by Reliance Industries and IT stock declines, resulting in a total market capitalization loss of Rs.2.73 lakh crore, bringing it down to Rs.475.2 lakh crore.

Major Losers in the Market

Today, Reliance Industries, ICICI Bank, HDFC Bank, and Axis Bank contributed to a 535-point drop in the Sensex. Additionally, stocks like Bharti Airtel, Mahindra & Mahindra (M&M), State Bank of India (SBI), TCS, Infosys, and Tata Motors also experienced declines. The Nifty indices for Banking, Auto, Financial Services, IT, Media, Realty, Healthcare, and Oil & Gas fell by up to 1.6%.

Key Reasons for the Decline

1. Foreign Investors Shift Focus to China

Foreign Institutional Investors (FIIs) have redirected their attention to the Chinese markets following economic stimulus measures announced by the government. The CSI300 index rose by 3.0%, and the Shanghai Composite surged by 4.4%, building on last week’s 13% rally. V K Vijayakumar, the Chief Investment Strategist at Geojit Financial Services, stated that the market was likely to enter a consolidation phase in the near term and mentioned that the outperformance of Chinese stocks was influencing foreign portfolios.

2. Escalation of Israel-Lebanon Tensions

The increase in Israeli strikes across Lebanon has added uncertainty to global markets, although oil prices have remained in check due to potential supply increases. Brent crude futures rose by 0.71%, and US West Texas Intermediate increased by 0.63%.

3. Investor Nerves Over US Data

Stock markets are closely monitoring upcoming US data, including job openings, private hiring numbers, and ISM surveys on manufacturing and services, which are all due this week.

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The decline in today's market has raised concerns among investors. Pressures from changes in foreign markets and global events are affecting the Indian stock market.