Indian stock market plunges, wiping out $120 billion in investor wealth

Indian equity markets experienced a significant downturn Thursday, as benchmark indices fell sharply amid broad-based selling pressure across sectors. By early afternoon trading, investors had suffered losses exceeding 10 lakh crore rupees as sentiment weakened across both the NSE and BSE.

The decline wiped substantial value from the market capitalisation of listed companies, with selling witnessed across most major sectoral indices. Retail investors, who have increasingly participated in Indian equities over recent years, faced considerable portfolio erosion during the session.

The precise trigger for the sharp decline was not immediately clear, though analysts cited concerns about global economic conditions and domestic macroeconomic factors as potential contributors to investor caution. Market participants appeared to have adopted a risk-averse stance during Thursday's trading.

The selloff underscores the volatility that can characterise equity markets, particularly during periods of uncertainty. Financial advisors typically counsel investors to maintain diversified portfolios and avoid panic-driven decisions during market downturns.

Trading volumes appeared elevated as investors rushed to square positions, with some defensive sectors witnessing relatively better performance than cyclical segments during the session.