The Indian stock market witnessed a significant downturn as the Sensex plummeted by over 900 points, dipping below the 73,000 mark, while the Nifty experienced a drop of over 1%. This marks the worst single-day fall for the smallcap index since December 2022, with a staggering 5% decline, while midcaps suffered a 3% loss. Microcaps and SME stock indices also took a hit, each dropping by around 5%. The collective market capitalization of all BSE-listed stocks saw a reduction of Rs 14 lakh crore, now standing at Rs 374 lakh crore. Despite a favorable global trade setup, including a record high for the S&P500 and significant investments by FIIs, the crash persisted. The sharp downturn is attributed to concerns raised by Sebi chairperson Madhabi Puri Buch regarding the bubble in smallcap and midcap segments that could pop at any moment. Buch highlighted the disconnect between…
