India, Dec. 8 -- India's stock market suffered a late sell-off today, with the benchmark indices tumbling sharply, wiping out over Rs.7 lakh crore of investor wealth in the process.

The 30-share S&P BSE Sensex fell more than 800 points, dragging the Nifty 50 below the psychological 26,000 mark. The severity of the slump was amplified in the broader market, where the BSE Midcap and Smallcap indices fell by over 2% each.

To be sure, the correction was not triggered by a single event but rather a confluence of global cautiousness and persistent domestic headwinds that forced traders and foreign investors to rush for the exit.

1. US Fed jitters: The main driver was the extreme caution ahead of the US Federal Reserve's interest rate decisio...