New Delhi, 11 March (H.S.): India's stock market crumbled under heavy selling pressure on Wednesday, reversing a one-day recovery and inflicting losses exceeding ₹5 lakh crore on investors in a single session.

The BSE Sensex plunged more than 1,565 points in intraday trade before closing down 1,342 points, or 1.72%, at 76,863.71. Similarly, the NSE Nifty 50 shed over 460 points intraday, ending 394 points, or 1.63%, lower at 23,866.

This sharp downturn followed Tuesday's gains, driven by four primary factors: escalating West Asia tensions, foreign investor sell-offs, profit booking, and a spike in the India VIX.

Geopolitical Tensions Escalate

Mixed signals from the US-Israel-Iran conflict fueled persistent investor fears, despite President Donald Trump's recent assurance of a swift end to hostilities.

Iran rejected the claim, intensifying attacks and reportedly mining the Strait of Hormuz, heightening supply disruption risks.These developments revived market jitters after a brief Tuesday rebound.

FII Exodus Adds Pressure

Foreign institutional investors (FIIs) withdrew over ₹32,849 crore from Indian equities in March alone, adopting a cautious stance amid global risks.Domestic institutional investors (DIIs) countered with buying, but could not offset the broader selling amid international turmoil.

Profit Booking and Volatility Surge

Investors engaged in aggressive profit-taking after Tuesday's rally, as noted by Dhami Securities Vice President Prashant Dhami. The India VIX, a fear gauge, jumped over 8%—reaching around 21 amid intraday highs near 21.39—signaling heightened uncertainty.

Expert Outlook on Nifty Levels

Khurana Securities CEO Ravi Chander Khurana highlighted Nifty support at 23,900 and a stronger base at 23,800, with resistance between 24,400-24,500.A break above could target 24,700, while slipping below risks a slide to 23,500, underscoring the market's fragile range-bound trading.

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Hindusthan Samachar / Jun Sarkar