Market Volatility Surges as SEBI’s Stricter IPO Regulations and Global Economic Concerns Weigh on Stocks

Stock Market Update: Sensex Drops 400 Points Amid Global Sell-Off, IT Stocks Plunge

The Indian stock market experienced a sharp decline today, driven by global economic concerns, particularly fears of a U.S. recession.

Key Highlights:
Sensex fell 451.57 points, while Nifty dropped 28.55 points to trade at 22,431.75.
IT stocks tumbled, with Infosys down 3.28%, Tech Mahindra losing 1.38%, and HCL Tech and TCS also in the red.
Small-cap index slumped over 500 points, with some stocks falling as much as 8%.
166 stocks hit a 52-week low, and 220 stocks hit the lower circuit.
Key Reasons for the Decline:
Recession fears in the U.S., impacting global investor sentiment.
Rising unemployment rates and concerns over a potential trade war due to Trump’s tariff policies.
Stricter SEBI regulations on SME IPOs, leading to a 1,000-point drop in the BSE SME IPO Index.
Global markets also saw significant losses, with the Dow Jones plunging 890 points and Japan’s Nikkei falling 1.7%.

Investor Caution:
Given the heightened volatility, investors should exercise caution, especially in high-risk sectors such as IT and small-cap stocks.