Sensex, Nifty Slip Amid Geo-Political Tensions; Investors Lose ₹7 Lakh Crore in a Day

Markets end in the red as India-Pakistan tensions escalate and global sentiment weakens ahead of US Fed policy decision; mid and small-cap stocks see deeper cuts.

May 6, 2025: The Indian stock market closed lower on Tuesday, May 6, as investor sentiment remained jittery due to rising India-Pakistan tensions and cautious global cues. The benchmark BSE Sensex shed 156 points, or 0.19%, to close at 80,641, while the Nifty 50 declined by 82 points, or 0.33%, ending the session at 24,379.60.

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Though the frontline indices saw moderate losses, broader market segments bore the brunt. The BSE Midcap index dropped 2.16%, and the Smallcap index fell sharply by 2.33%, leading to an erosion of nearly ₹7 lakh crore in investor wealth.

🔍 What Triggered the Decline?

• Rising geopolitical uncertainty following India’s firm stance post-Pahalgam terror attack and Pakistan’s missile tests unnerved investors.
• Weak cues from global markets ahead of the US Federal Reserve’s monetary policy outcome further fueled selling.
• Foreign institutional investors (FIIs) reportedly turned net sellers amid risk-off sentiment.

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💬 Analysts’ Take

Market experts pointed out that profit booking in overheated mid and small-cap segments contributed significantly to the day’s losses. Traders also remained cautious ahead of major global data and central bank commentary.

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Tags:
Stock Market, Sensex, Nifty 50, BSE Midcap, BSE Smallcap, India Pakistan Tensions, Geopolitical Risk, US Fed Policy, Market Crash, Investor Wealth