Indian equity benchmarks plunged Tuesday, with the Nifty50 sliding 194 points to 22,586.60 and the BSE Sensex dropping 633 points to 72,138.99. The fall erased nearly ₹4 lakh crore from the combined market capitalisation of BSE‑listed firms, taking it to ₹474 lakh crore. Bajaj Finance, a key component, saw its shares dip 2% after a sharp sell‑off.
Oil prices kept the market rattled. Brent futures rose past $107 a barrel, while WTI crossed $94, lifting global risk sentiment. At the same time, bond yields hit fresh multi‑year highs, making debt securities more attractive to risk‑averse investors.
The rupee slid to a two‑month low of 96.1450 against the dollar, reflecting pressure from higher imports and a weakening currency. Foreign institutional investors sold more than ₹5,353 crore of equities on Monday, and this month’s total outflows reached ₹25,682 crore, according to provisional NSE data.
VK Vijayakumar of Geojit Investments noted that the shift from net inflows in July‑August to net outflows this month has become visible at the start of the trading week. “The selling trend has continued, with the market experiencing net FII outflows in 15 of the 19 sessions so far,” he said.
The market is now looking to the RBI’s Monetary Policy Committee meeting scheduled for Oct 5‑7. Market participants are pricing in a rate hike, mirroring the US Federal Reserve’s recent tightening cycle, and the decision could further impact equity valuations.