Indian equity markets witnessed a sharp sell-off on Friday, with the BSE Sensex plunging nearly 1,700 points and the Nifty 50 slipping below the 22,850 mark. The decline erased around Rs 9 lakh crore in investor wealth, dragging the total market capitalisation of BSE-listed firms down significantly.
The downturn came after a brief rally earlier in the week, as bearish sentiment returned amid global uncertainties. A major trigger was the Indian rupee hitting a fresh record low, breaching the 94 mark against the US dollar, which added pressure on market confidence.
Escalating tensions between Iran and the United States further dampened investor sentiment, reducing hopes of near-term stability in global markets. Additionally, continued foreign portfolio investor outflows contributed to the selling pressure across sectors.
The combined impact of geopolitical concerns, currency weakness, and capital outflows led to a broad-based decline, reversing recent gains and pushing benchmark indices sharply lower.