Stock Market Crash and Top News Today: Sensex and Nifty Plunge Over 2%

Stock Market Crash: Sensex and Nifty Experience Heavy Losses

On October 3, the Indian stock market endured a *shattering crash*, with both the Sensex and Nifty witnessing a downturn exceeding 2%. This plunge has cut down the market capitalization of BSE-listed companies nearly ₹10 lakh crore, raising alarms among investors on *Dalal Street*.

Impact on BSE-listed Companies

With the market cap diminishing from ₹4,74.86 lakh crore to a staggering ₹4,65.07 lakh crore, analysts express concern over soaring valuations, particularly among PSUs, which are trading at high market caps in relation to their financial fundamentals. Kotak Institutional Equities emphasizes the rising risks overshadowed by investors’ thirst for returns.

Geopolitical Tensions Escalate

As the Middle East situation intensifies, *Rawhi Mushtaha*, head of the Hamas government in Gaza, was reportedly killed by Israeli airstrikes, amplifying stress in global markets. This incident is pivotal in the ongoing conflicts that could influence economic stability.

India's Response to Foreign Criticism

The Indian government firmly rebutted the recent *USCIRF* religious freedom report, accusing it of bias. The Ministry of External Affairs labeled the report as a *malicious narrative*, reaffirming the strength of India’s stance on religious tolerance.

Controversies and Glitches

Controversial remarks by Karnataka Minister Dinesh Gundu Rao regarding *Vinayak Damodar Savarkar* have sparked debates, while technical issues at *HDFC Securities* hindered trading activities, further aggravating the market situation.

Foreign Investments Show Resilience

In contrast, *FPIs* continued to show robust interest, investing nearly ₹90,000 crore in Indian equities during H1FY25 despite the tumultuous backdrop. The significant inflow highlights the positive macroeconomic outlook.