New Delhi, Oct 8: Indian equity markets came under intense selling pressure on Thursday as a combination of rising crude oil prices, higher US bond yields and global uncertainty triggered a sharp sell-off across Dalal Street.
The Nifty 50 touched a fresh 52-week low of 22,179.90 during intraday trade, while the Sensex plunged more than 1,000 points, reflecting growing risk aversion among investors.
More than Rs 10 lakh crore in market capitalisation was reportedly wiped out during the sell-off, highlighting the scale of the decline and the sharp deterioration in market sentiment.
Crude Oil Crosses $104, Adding to Market Pressure
A key concern for investors was the sharp rise in crude oil prices, with oil moving above $104 a barrel. Higher crude prices are particularly significant for India, which relies heavily on imports to meet its energy requirements.
A sustained rise in oil prices can increase India’s import bill and put pressure on inflation, the rupee and corporate profitability. The prospect of more expensive energy has therefore added another layer of uncertainty for equity investors.
Rising US Yields Add to Global Jitters
Global cues also remained unfavourable as US bond yields climbed, with the 10-year US Treasury yield moving towards 5.35 per cent.
Higher US yields can make dollar-denominated assets more attractive to global investors and reduce the appeal of emerging-market equities. This can encourage foreign investors to reduce exposure to markets such as India, adding to selling pressure.
Foreign Outflows Weigh on Sentiment
The sharp market decline also reflects concerns over continued capital outflows and weakening investor confidence.
With global markets facing uncertainty around interest rates, crude oil prices and economic growth, investors have increasingly turned cautious. The combination of foreign selling and nervous domestic sentiment intensified the decline in Indian equities.
Nifty Slips to a New 52-Week Low
The Nifty’s fall to 22,179.90 marks a significant deterioration from recent levels and puts the index firmly under pressure from a technical perspective.
The sharp correction across major sectors suggests that selling was broad-based rather than restricted to a handful of stocks. Investors are now likely to closely monitor whether the index can find support around current levels or whether further weakness lies ahead.
What Lies Ahead for Dalal Street?
The immediate outlook for Indian equities is likely to remain closely linked to global developments. Movements in crude oil prices, US Treasury yields, the dollar and foreign fund flows will remain key factors for investors.
For India, persistently high crude prices could also raise concerns about inflation and the rupee, making the external environment particularly important for the domestic market.
The latest sell-off has therefore put investors on alert, with the Nifty’s fresh 52-week low and the Sensex’s more than 1,000-point fall underscoring the fragile mood across Dalal Street.
Market participants are likely to remain cautious until there is greater clarity on global yields, oil prices and foreign capital flows.