Mumbai: In a sharp sell-off on Thursday, October 5, the Bombay Stock Exchange (BSE) witnessed a massive plunge, wiping out over Rs 7 lakh crore in market capitalisation. The benchmark Sensex fell over 1,300 points, while the Nifty50 slipped below the critical 25,450 mark as escalating tensions in the Middle East rattled investor sentiment.

By midday, the BSE Sensex had dropped 1,318 points, or 1.56%, to trade at 82,948.23, while the Nifty50 was down 396 points, or 1.53%, at 25,400.95. The sharp decline mirrored a broader sell-off across Asian markets, as investors reduced their risk exposure amid concerns of a potential oil supply disruption in the region.

Market capitalisation of all listed companies on the BSE slumped by Rs 7.2 lakh crore, dropping to Rs 467.67 lakh crore, reflecting widespread investor panic.

The Middle East crisis deepened after Iran launched ballistic missiles at Israel earlier this week, heightening fears of further escalation and possible interruptions to oil supplies from the region. The development has added uncertainty to global markets, as investors brace for potential economic consequences. 

The ongoing geopolitical tensions, along with oil market disruptions, have been key contributors to the sudden market downturn.