Sensex Crashes 1,000 Points; ₹9 Lakh Crore Wiped Out as Foreign Investors Sell

The Indian stock market came under heavy selling pressure on Thursday, with the Sensex plunging more than 1,000 points by 2 pm and the Nifty slipping below 22,300.

The selloff wiped out nearly ₹9 lakh crore in market capitalisation. The total market cap of BSE-listed companies fell from ₹4,71,86,292 crore at the open to ₹4,62,71,545 crore by 1:45 pm.

Foreign institutional investors (FIIs) remained major sellers. On September 30, they offloaded Indian equities worth more than ₹10,000 crore, taking their combined selling over the previous two sessions beyond ₹20,000 crore.

The fall was driven by several factors, including rising US bond yields, a weakening rupee and concerns over crude oil prices. The US 10-year Treasury yield climbed above 5.3%, making US fixed-income assets more attractive to global investors.

The rupee weakened beyond ₹96 against the US dollar, adding to pressure on Indian equities. Meanwhile, supply disruptions linked to the Iran conflict have raised concerns over crude prices, which could impact India as a major oil importer.

Market volatility also increased, with India VIX rising sharply as the selloff intensified.

Market expert Eshaan Lazarus, Founder & CEO of 021 Trade, said the Nifty 50 may not fully reflect the performance of retail portfolios, as many investors have increased their exposure to mid- and small-cap stocks.

Lazarus also highlighted the divergence between Indian equities and other emerging markets. He said the MSCI Emerging Markets Index had gained more than 20% in dollar terms by the end of September, while the Nifty 50 had declined around 13% in rupee terms.

Despite the sharp fall, Lazarus said investment decisions should not be based solely on a single day’s market decline and that the long-term outlook also needs to be considered.