The Indian stock market experienced a dramatic downturn on October 3rd, with the BSE-listed companies losing nearly ₹10 lakh crore in market capitalization. This marked the worst intra-day fall in two months, fueled by escalating geopolitical tensions and other factors. Meanwhile, tensions in the Middle East continue to escalate, with the Israeli military claiming to have eliminated three top Hamas commanders, including Rawhi Mushtaha, the head of the Hamas government in the Gaza Strip. This news comes amidst a broader conflict in the region, with war now raging on multiple fronts.
India has vehemently rejected a report by the US Commission on International Religious Freedom (USCIRF) on religious freedom in the country, labeling the organization biased and politically motivated. The Ministry of External Affairs criticized the report for misrepresenting facts and peddling a motivated narrative. The controversy surrounding the report continues to fuel debate and tension between the two nations.
The Indian equity market’s recent pullback has also raised concerns about high valuations, with analysts at Kotak Institutional Equities suggesting investors are overlooking potential risks. This highlights the ongoing volatility in the global financial landscape and the need for cautious investment strategies.
In other news, HDFC Securities faced a technical glitch on October 3rd, impacting users’ ability to place orders on the platform. This came amidst heavy selling pressure in the Indian stock market, contributing to the overall decline. The Supreme Court has stayed the Madras High Court’s order against Sadhguru Jaggi Vasudev, the spiritual leader of the Isha Foundation, and transferred the case to itself. This decision comes in the context of allegations against the foundation concerning the treatment of women. Furthermore, the Supreme Court has intervened in the Isha Foundation case, highlighting the potential for legal battles surrounding religious organizations and their activities.
Foreign portfolio investors (FPIs) have shown strong interest in Indian equities in the first half of the current financial year (FY25), driven by improving macroeconomic conditions, declining inflation, and a rate cut by the US Federal Reserve. This reflects growing confidence in the Indian economy and its potential for future growth.
