Stock Market crash: Several Indian investors lost whopping Rs 10 lakh crore in one day, here's why

Stock Market crash: The market capitalisation of all the companies listed on the BSE plunged Rs 9.8 lakh crore to Rs. 435.1 lakh crore on Friday. And the benchmark BSE Sensex fell 663 points, or 0.83 per cent, to end the day below the 80,000 mark at 79,402.

The Sensex on Friday crashed nearly 445 points and Nifty fell below the cushy 24,000-mark as the Indusland Bank, Mahindra & Mahindra, L&T and ICICI Bank dragged Indian indices down on October 25, 2024. At the same, Reliance Industries, HDFC Bank, SBI and NTPC further drove the market down on Friday. And other indices such as the Nifty Auto, Bank, Metal, PSU Bank, Realty and Consumer Durables indices were also down 2 per cent to 3.6 per cent driven by a disappointing Q2 result season led by private lender Induslnd Bank and power company NTPC. 

On this day, several Indian investors lost whopping Rs 10 lakh crore in the single day. Moreover, the market capitalisation of all the companies listed on the BSE plunged Rs 9.8 lakh crore to Rs. 435.1 lakh crore on Friday. And the benchmark BSE Sensex fell 663 points, or 0.83 per cent, to end the day below the 80,000 mark at 79,402.

The Sensex plunged by 662.81 points, ending the day at 79,402.29, while the Nifty fell 218.60 points to close at 24,180.80. Among Nifty-listed companies, only 12 stocks advanced, whereas 38 stocks declined, reflecting a broad-based sell-off across sectors.

Leading the list of Nifty gainers were ITC, Axis Bank, Bharat Electronics Limited (BEL), Britannia, and Hindustan Unilever. Conversely, the top losers included IndusInd Bank, Adani Enterprises, Bharat Petroleum Corporation Limited (BPCL), Shriram Finance, and Coal India, which faced significant downward pressure.

According to VLA Ambala, Co-Founder of Stock Market Today, several factors contributed to the day's bearish performance.

Ambala said, "The depreciation of the Indian rupee against the dollar is affecting India's purchasing power and global position. In addition, the lukewarm Q2 results did not meet the expected GDP growth target, leaving investors cautious."

She added, "The FIIs are also on an aggressive selling spree and have offloaded over Rs 1 lakh crore in 30 days. However, DIIs have compensated nearly 94% of this outflow, buying Rs 92,931.54 crore in equity in October. This activity has led to a 7 % decline in Nifty50, and the downturn is likely to continue."

Foreign Institutional Investors (FIIs) have played a key role in the recent market volatility, with an aggressive selling spree over the past month.

For mid-term investors, Ambala recommended a cautious approach. "Consider buying in parts near the 50-week EMA with a significant dip," she suggested, as the market braces for further fluctuations in the coming sessions.