Indian shares posted their worst session in months as the Sensex dropped as much as 1,280 points before closing down 1.3%, with Brent crude staying near $99 a barrel. The Nifty, meanwhile, extended a losing streak that is now its longest in 25 years.
The Sensex fell from 72,573 to an intraday low of 71,293, before closing at 71,543, down 1.3% on the day. The Nifty 50 slipped to an intraday low of 22,217 and ended at 22,296, a loss of 325 points.
The selling hit almost everything. On the BSE, 3,250 stocks fell while only 990 rose, and 41 of the 50 Nifty stocks ended in the red. The total value of BSE-listed companies shrank from about ₹473 lakh crore to ₹462.8 lakh crore by 1:50 pm, and India VIX, which tracks market fear, rose 9%.
Foreign outflows and oil prices drive the drop
Foreign institutional investors kept pulling money out: FIIs withdrew ₹44,000 crore in September, including about ₹10,148 crore on September 30 alone, while domestic institutions bought more than ₹11,000 crore the same day. Brent crude stayed close to $99 a barrel as uncertainty over US-Iran peace talks continued, and since India imports most of its oil, higher prices hurt its import bill.
Traders also expect the RBI to raise rates at its October policy meeting because bond yields and inflation have gone up. G Chokkalingam of Equinomics Research said the heavy flow of new share sales has pulled money away from listed stocks. Markets are also shut on October 2 for Gandhi Jayanti, so traders avoided taking new positions ahead of the long weekend.
Nifty heads for an eighth straight weekly loss
The pressure extends beyond a single session. The Nifty is on track for its eighth consecutive weekly loss, its longest losing streak in 25 years, after falling 1.5% to a six-month low and wiping out more than ₹5.1 trillion ($57 billion) in market value. The rupee slipped to ₹96.25 per dollar as crude oil pushed above $100 a barrel, adding further pressure.
Analysts say the market is now at risk of falling below its 200-week moving average for the first time since COVID, a level that has historically triggered either a sharp bounce or a deeper crash over the past two decades.
Autos lead sector losses, IT the exception
Auto stocks took the biggest hit, with the Nifty Auto index down 4%. Bajaj Auto fell 7%, while Mahindra & Mahindra and Maruti Suzuki each lost more than 4%. Metal, defence and consumer durables indices fell more than 2%, but IT was the only bright spot, rising 2%.
Sources: Coinpedia Fintech News, Coinpedia Fintech News
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