Stock market crash: Bears took charge over Dalal street as Nifty fell nearly 1.11%, and Sensex was down close to 700 points during Thursday’s intraday trading session. Crude oil price volatility, high treasury bond yields, FII selling, Rupee weakness, and the Reserve Bank of India (RBI) repo rate decision were among the key factors that dragged the Indian stock market lower today, ie October 8.
Meanwhile, stock market investors eagerly await the Tata Consultancy Services (TCS) result for the second quarter. Nifty 50 was trading 1.08% lower at 22,359 points at 12:16 pm on October 8. Whereas, BSE Sensex was down 755 points at 71,883.
What went wrong for Nifty and Sensex today?
The weakness in the Indian stock market today was largely driven by the hawkish stance by the RBI. The Central Bank raised the repo rate by 25 basis points on Wednesday, for the first time since February 2023.
“The recent rise in the repo rate by 25 basis points has made investors more apprehensive about liquidity and cost of borrowing. With the global markets also coming under pressure, investors have turned defensive. In the short run, volatility will stay high, and the course of the market will depend on quarterly results, crude prices, and the RBI,” explained Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Pvt. Ltd.
Continued foreign selling, high bond yields, concerns around sticky inflation further contributed. “The weakness seen today in the market is largely attributed to the hawkish stance of the RBI, increasing crude prices, and continued foreign selling. Increasing crude prices are fueling worries about inflation, and high bond yields and weakening rupee are other reasons why investors are remaining cautious,” explained Maurya.
Over 7 lakh wealth eroded
The sharp decline in Nifty and Sensex erased more than 7 lakh crore from the combined market capitalistion of companies listed on BSE.
