The Indian stock market suffered its worst performance in months on Thursday. The Sensex index fell to a new low since 2026, with investors losing over 10 trillion rupees in market value in just one afternoon.
Daily Trend
Sensex once fell by 1,280 points, dropping from 72,573 to 71,293 points, and then closed at 71,543 points, a decrease of 1.3%. Nifty hit a low of 22,217 points during the session and ultimately closed at 22,296 points, losing 325 points.
Selling pressure affected almost all sectors. On the Mumbai Stock Exchange ( BSE ), 3,250 stocks declined while only 990 rose; among the 50 constituent stocks of Nifty, 41 closed lower. By 1:50 p.m., the total market value of companies listed on BSE fell from approximately 473 trillion rupees to 462.8 trillion rupees. The Indian index VIX, which measures market panic, rose by 9%.
Why is the market falling?
- Foreign capital continues to sell: In September, foreign institutional investors ( FII ) sold a net amount of 440 billion rupees. On September 30th alone, they sold approximately 101.48 billion rupees, while domestic institutions bought more than 110 billion rupees.
- Oil prices approach $99 per barrel: Due to the ongoing uncertainty in peace negotiations between the United States and Iran, Brent crude oil remains around $99 per barrel. India relies heavily on imported oil, so high oil prices will increase its import bills.
- Rising interest rates concerns: Traders expect that India's central bank ( RBI ) may raise interest rates at its policy meeting in October, as both bond yields and inflation are on the rise.
- IPO Withdrawal of Funds: G Chokkalingam indicates that the issuance of a large number of new shares has drawn funds away from already listed stocks.
- Cautiousness before the long weekend: On October 2nd, the market is closed to commemorate Gandhi's birth, so traders avoid opening new positions.
Sector and Individual Stock Performance
Automobile stocks experienced the largest decline, with the Nifty Auto index falling by 4%. The Bajaj Auto index fell by 7%, and both the Mahindra and Mahindra indices, as well as the Maruti Suzuki index, fell by more than 4%. Metals, defense, and durable goods indices all fell by over 2%. The IT sector was the only bright spot, rising by 2%.
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