Dalal Street selloff: Dalal Street witnessed a major downturn as investors saw their wealth diminish by Rs 13.47 lakh crore in a single day amid intense selling pressure in the equity market. The BSE benchmark Sensex plunged over 900 points, marking a substantial decline in market capitalisation.

The 30-share BSE index tumbled 906.07 points or 1.23 percent to settle at 72,761.89, with intra-day losses reaching as much as 1,152.25 points or 1.56 percent to 72,515.71. The drastic drop was exacerbated by a sharp decline in smallcap and midcap indices, dampening market sentiment.

The collective market capitalisation of BSE-listed companies witnessed a massive erosion, totalling Rs 13,47,822.84 crore, bringing it down to Rs 3,72,16,602.67 crore.

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., attributed the market downturn to concerns surrounding the soaring valuations of mid and small-cap stocks. Regulatory cautions further prompted traders to trim their exposures, resulting in a broad-based correction across sectors.

Despite initially trading positively, benchmark indices reversed course during afternoon trading, with all sectoral indices ending in the red. The BSE smallcap index plummeted by 5.11 percent, while the midcap index declined by 4.20 percent.

Key losers in the Sensex included Power Grid, NTPC, Tata Steel, Tata Motors, Titan, JSW Steel, Bharti Airtel, Reliance Industries, and Hindustan Unilever. Conversely, gainers included ITC, ICICI Bank, Kotak Mahindra Bank, Bajaj Finance, and HDFC Bank.

The sell-off was widespread across sectors, with utilities, metals, services, telecommunications, oil & gas, commodities, and industrials all ending in negative territory.

Vinod Nair, Head of Research at Geojit Financial Services, noted that despite the global uptrend, unfavorable risk-reward balances in mid and small-cap stocks, coupled with premium valuations, contributed to the downfall. He also highlighted FMCG and contrarian plays like gold as offering some refuge amidst the market turmoil.

(With PTI inputs)