Indian markets tumble as rate-hopes, oil prices and low liquidity bite
The Sense Mix and Nifty fell sharply on Thursday, with the Sensex dropping 1,280 points to a 2026 low amid fears of an RBI rate hike, high crude prices and thin market liquidity.
On Thursday the Indian equity market experienced a steep decline, with the Sense Mix shedding 1,280 points to a 2026 trough and the Nifty slipping to about 22,200. Market participants cited several pressures: anticipation of an RBI policy rate hike in October, Brent crude hovering near $99 per barrel, and a liquidity squeeze caused by a spate of recent IPOs. Foreign institutional investors intensified selling, netting around ₹44,000 crore in September, which has eroded years of inflows.
Auto giants Mahindra & Mahindra and Maruti Suzuki were among the biggest losers, each down more than 4%, while Tata Steel, UltraTech Cement and ITC fell 3-3.5%. Overall, 25 of the 30 Sensex stocks and 41 of the 50 Nifty stocks traded lower, with a broad market breadth of roughly 3,250 declining shares versus about 990 advancing.
Why it matters
The sharp drop highlights vulnerability in India's stock market to rate-rise expectations, oil price shocks and liquidity shortages.
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