Business
oi-Swastika Sruti
The Indian stock markets were hit hard with selling on Thursday, October 8, when the Sensex fell over 1,000 points, while the Nifty fell below 22,250 marks.
Indian stock markets plummeted on Thursday, October 8, with Sensex falling over 1,000 points and Nifty below 22,250, due to the RBI’s repo rate hike and policy shift, rising crude oil, foreign selling, and a weaker rupee, causing investor wealth erosion of over ₹10 lakh crore.
The fall became even worse as the markets opened on a weak note. The fall in markets was already expected after the Reserve Bank of India increased the repo rate and changed its monetary policy from neutral to calibrated tightening a day before.
The rise in crude oil prices, foreign selling by investors, and the weakening of the rupee further put pressure on Dalal Street.
Sensex, Nifty Fall Sharply
The Sensex opened lower on Thursday and continued to lose ground as the session progressed. By afternoon trade, the index had fallen more than 1,000 points.
The Nifty 50 also came under intense pressure and slipped below the 22,250 mark. The index touched a fresh 52-week low around 22,181 during the session, according to market reports.
The broader market also witnessed widespread selling, with several sectors trading in the red.
The sharp fall came just a day after the Sensex had already lost 429 points and the Nifty had declined 173 points following the RBI’s policy announcement.
Investors Lose Over ₹10 Lakh Crore In Market Value
The sharp fall in equities resulted in a massive erosion of investor wealth.
According to market reports, the combined market capitalisation of BSE-listed companies fell by roughly ₹10 lakh crore during Thursday’s sell-off. Other reports put the erosion at around ₹11 lakh crore as the market hit its intraday lows.
The decline shows how quickly investor wealth can fall when several negative factors hit the market at the same time.
Volatility Shoots Up
The sell-off also triggered a sharp rise in market volatility.
The India VIX, which measures expected volatility in the equity market, jumped by more than 10% during the session.
A rise in the volatility index generally indicates greater uncertainty among investors and expectations of larger price movements.
