Indian Stock Market Crashes Amid Rising Geopolitical Tensions
The Indian stock markets experienced a sharp decline on October 3, marking the fourth consecutive session in the red. The benchmark Sensex tumbled 1,769.19 points or 2.10% to close at 82,497.10, while the Nifty 50 index lost 546.80 points or 2.12%, settling at 25,250.10. This market crash is the largest in two months, triggered by rising geopolitical tensions between Israel and Iran.

Broad-Based Selling Across Sectors
The Indian markets witnessed a gap-down opening which deepened as the session progressed. Every sectoral index ended in the red, with heavy selling pressure observed in oil & gas, banking, auto, realty, and capital goods sectors. The realty sector was hit the hardest, dropping 4.5%, while the auto, bank, and oil & gas indices declined by 2-3%. Broader indices, including the BSE Midcap and Smallcap, mirrored the market's fall, declining by 2% each.

Market Capitalisation Erodes by Rs 9.6 Lakh Crore
Amid this downturn, investor wealth saw a significant erosion. The total market capitalisation of companies listed on the BSE shrank from Rs 474.86 lakh crore to Rs 465.25 lakh crore, wiping out Rs 9.6 lakh crore in a single day.

Key Nifty Losers
Among the biggest Nifty losers were BPCL, L&T, Tata Motors, Shriram Finance, and Axis Bank. On the other hand, only a handful of stocks, including JSW Steel and ONGC, managed to close in the green.

Stock Market Indicators Show Weakening Sentiment
The overall sentiment in the market remained bearish, with more than 1,849 stocks ending the day in the red compared to just 444 stocks that closed higher. The Indian Volatility Index (Nifty VIX) rose by 9.9%, indicating rising uncertainty in the market, and settled at 13.2 points. This surge in volatility, along with the sharp decline in major indices, underscores the broader risk aversion among investors.

Global Cues Also Contribute to Decline
Globally, market sentiment was mixed, with Asian indices closing with varied results, while European markets traded lower. US futures also pointed to a weak start, indicating cautious investor sentiment across global markets. Amid this turmoil, Brent crude oil futures managed to rise, supported by supply concerns amid the ongoing geopolitical tensions.

Stock Performance Overview
A closer look at the broader market revealed that more than 200 stocks touched their 52-week highs despite the carnage. Prominent stocks among these included Balrampur Chini Mills, Britannia Industries, Coforge, Deepak Fertilizers, Dr Lal PathLab, and EID Parry. However, the day's trading saw a decisive tilt towards the bears as companies across various sectors struggled to maintain momentum.

Sectoral Overview
All major sectoral indices ended the day lower:

Realty: Down by 4.5%, indicating a massive pullback in the real estate market.

Auto, Banks, Media, Capital Goods, Oil & Gas: All saw declines of 2-3%, with investors dumping shares across these sectors.

BSE Midcap and Smallcap: Both indices declined by 2%, indicating a broad-based selloff.

Economic Indicators and Key Corporate News
Despite the market downturn, Maruti Suzuki reported an increase of 1.9% in its total wholesales, rising to 1.8 lakh units in September, primarily driven by a 23.2% YoY jump in exports. On the other hand, Bandhan Bank saw its shares fall by over 3% after ICRA downgraded its non-convertible debentures (NCD) rating.

Among other major corporate updates, GE Power India received a purchase order worth Rs 20.9 crore, while Yes Bank reported strong growth in deposits and advances, with deposits rising by 18.3% YoY in Q2FY25. On the international front, Tesla disappointed investors with lower-than-expected Q3 deliveries, despite aggressive price cuts and new incentives.

Looking Forward
The Indian stock market is currently navigating a series of challenges, including geopolitical tensions, inflationary pressures, and global macroeconomic concerns. As foreign portfolio investors continue to inject capital into Indian equities, market sentiment remains volatile. Indian equities saw an inflow of Rs 89,717 crore in H1FY25, reflecting improving domestic conditions and expectations of a potential US Federal Reserve rate cut.

In summary, the Sensex and Nifty witnessed their biggest decline in two months amid concerns over global uncertainties, particularly related to Israel and Iran. Investors will be closely monitoring upcoming economic data and global developments for cues on market direction.

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