New Delhi, August 1: Over the last month, the Indian stock market has entered into a free fall mode, with an unprecedented downslide being recorded by the regulator. The Sensex has shed off by 2,700 points since July 4, whereas, the Nifty has fallen below 11,000 -- bringing to a 5-month low.

Experts have attributed the market's dark phase to an array of factors, ranging from the geopolitical tensions, escalating US-China trade war, Washington's warning to New Delhi on tariffs, a general slowdown of the economy and a slump in demand in key sectors. Sensex Crashes 700 Points in Late-Afternoon Trade; Nifty Below 11,000

The triggering factor, however, was the imposition of surcharge on the "super-rich", as announced by Finance Minister Nirmala Sitharaman in the Budget for 2019-20.

Despite the government attempting to allay concerns, foreign investors have pulled out Rs 11,000 crore worth of shares from the Indian market. The situation could worsen if the policy is not rolled back, suggest pundits.

Sectors which have been worst hit due to the market slump include auto, banking and financials, energy, infra and metals stocks.

Among the biggest losers are Reliance Capital, Jain Irrigation Systems, Reliance Power, Dewan Housing Finance Corporation, Cox & Kings, Jet Airways, Sintex Plastics, Indiabulls Integrated Services, Reliance Infrastructure, PC Jeweller, Reliance Home Finance, Jaiprakash Associates, Vodafone Idea, who have tanked between 50-90 percent.

(The above story first appeared on LatestLY on Aug 01, 2019 06:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).