In today's trading session, the Indian stock market witnessed a departure from the positive momentum seen in major Asian and European markets. While indices like Japan's Nikkei and Korea's KOSPI surged, India's Nifty 50 and Sensex ended the day in the red, showcasing an all-round selloff that defied positive global cues.

Renewed hopes of rate cuts by the US Federal Reserve buoyed investor sentiment across major global markets. However, in India, concerns lingered over the premium valuation of the market, compounded by heavy selling by foreign portfolio investors (FPIs) ahead of the upcoming Lok Sabha election outcome on June 4. This uncertainty surrounding domestic political developments added to investor jitters, overshadowing the positive sentiment emanating from global markets.

The Sensex closed with a notable loss of 384 points, representing a decline of 0.52%, settling at 73,511.85. Among the index heavyweights, shares of ICICI Bank, HDFC Bank, Reliance Industries, and Power Grid emerged as the top drags. Similarly, the Nifty 50 witnessed its third consecutive session of losses, closing 140 points lower at 22,302.50, with 34 stocks in the red.

The broader market also bore the brunt of the selloff, with the midcap and smallcap segments experiencing deep cuts. The BSE Midcap index plunged 1.90%, while the Smallcap index ended the day with a loss of 1.65%. This downward trajectory across various market segments underscored the prevailing bearish sentiment among investors.

The overall market capitalization of BSE-listed firms took a significant hit, dropping to nearly ₹398.4 lakh crore from ₹403.4 lakh crore in the previous session. This single-session decline of nearly ₹5 lakh crore underscores the magnitude of investor losses amidst today's selloff.

In conclusion, today's trading session in the Indian stock market painted a picture of divergent fortunes amidst global optimism and local uncertainties. While major global markets experienced gains fueled by hopes of rate cuts, India grappled with concerns over valuation and impending election outcomes. As investors navigate this complex landscape, the coming days are poised to offer further insights into the market's resilience and response to evolving economic and political dynamics.

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