Indian shares had their worst session in months on Thursday. The Sensex fell to a new 2026 low and investors lost over ₹10 lakh crore in market value in a single afternoon.
How the day played out
The Sensex dropped as much as 1,280 points during the day, from 72,573 to 71,293, before closing at 71,543, down 1.3%. The Nifty 50 slipped to an intraday low of 22,217 and ended at 22,296, a loss of 325 points.
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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. India VIX, which tracks market fear, rose 9%.
Why the market fell
- Foreign investors kept selling: FIIs pulled out ₹44,000 crore in September. On September 30 alone they sold about ₹10,148 crore, while domestic institutions bought more than ₹11,000 crore.
- Oil near $99: Brent crude stayed close to $99 a barrel as uncertainty over US-Iran peace talks continued. India imports most of its oil, so high prices hurt its import bill.
- Rate hike worries: Traders expect the RBI to raise rates at its October policy meeting because bond yields and inflation have gone up.
- IPOs draining cash: G Chokkalingam of Equinomics Research said the heavy flow of new share sales has pulled money away from listed stocks.
- Long weekend caution: Markets are shut on October 2 for Gandhi Jayanti, so traders avoided taking new positions.
Sectors and stocks
Auto stocks took the biggest hit, with the Nifty Auto index down 4%. Bajaj Auto fell 7%, and Mahindra & Mahindra and Maruti Suzuki lost over 4% each. Metal, defence and consumer durables indices fell more than 2%. IT was the only bright spot, rising 2%.