Indian Stock Market Plunges Due to Various Global and Domestic Factors

The Indian stock market experienced a significant decline today, with the BSE Sensex and Nifty50 plummeting despite a strong opening. Factors contributing to the crash included the decline of index heavyweights like Reliance Industries and HDFC Bank, increased market volatility, uncertainty surrounding US interest rate cuts, and speculation regarding the Lok Sabha election results. These elements combined to create a day of heightened market turbulence and concern among investors.

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Indian Stock Market Witnesses Volatility Amid Profit Booking and Global Factors

The Indian stock market benchmarks, Nifty 50 and Sensex, experienced a sharp decline due to profit booking across sectors, with Nifty 50 dropping over 1% and Sensex falling by a similar percentage. Experts attribute the fall to profit booking at higher levels, caution ahead of crucial US non-farm payrolls data, and a combination of global and domestic factors contributing to heightened market fluctuations. Despite the volatility, experts hold a positive bias on the market in the short-to-medium term, citing strong domestic economic indicators and a cautious stance ahead of the US data.

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Indian Defense Stocks Expected to Surge After ₹80,000 Crore Order Announcement

Indian defense stocks are expected to gain attention in the stock market following a significant military order, with companies like Bharat Electronics Ltd. (BEL) and Hindustan Aeronautics Ltd. (HAL) likely to benefit. The order, constituting 13% of the military sector’s budget for FY 24–25, aligns with the government’s Long-Term Integrated Perspective Plan and Atmanirbharta campaign, indicating a positive outlook for the defense sector.

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Reasons Behind the Recent Small-Cap Index Decline in Indian Stock Market

The Indian stock market experienced a decline today, with small-cap and mid-cap indices suffering more than the key benchmark indices. Small-cap stocks were overvalued, leading to profit-booking, while geopolitical tensions and less liquidity also contributed to the nosedive. Additionally, sell-off pressure in PSU, banking, defense, and railway stocks intensified the bear run in the small-cap index.

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