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Indian Stock Market Plunges – ‘Five Major Reasons’ Behind ‘₹20 Lakh Crore Wipe Out’ This Week
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CNBC TV18•01-10-2026, 14:18
Indian Stock Market Plunges – ‘Five Major Reasons’ Behind ‘₹20 Lakh Crore Wipe Out’ This Week
- •Indian stock markets experienced a significant downturn, wiping out ₹20 lakh crore in market capitalization this week, marking the worst September series in 25 years and a negative start to October.
- •Rising crude oil prices, with Brent crude nearing $100 a barrel, and increasing global bond yields, including the US 10-year bond yield at 5.3%, are major contributing factors to the market decline.
- •Relentless selling by Foreign Institutional Investors (FIIs) continued, with over ₹36,000 crore sold in September alone, reversing the inflow trend seen in July and August.
- •The Indian Rupee weakened past 96 against the US Dollar, influenced by oil prices and rising bond yields, adding further pressure to the markets.
- •Fears of global monetary policy tightening, with anticipated rate hikes by the US Federal Reserve and the Reserve Bank of India, along with a constant supply of new IPOs and block deals, are also impacting market sentiment.
Key Questions Answered
The steep market crash was driven by five major factors: rising crude oil prices reaching $100 a barrel, a surge in global bond yields, relentless foreign institutional investor selling, the rupee weakening past 96 against the US Dollar, and continuous equity supply through IPOs and block deals alongside monetary tightening fears.
Foreign institutional investors have offloaded nearly ₹2.5 lakh crore in the cash market so far this year, which includes a trend reversal with over ₹36,000 crore sold during September.
During the recent market downturn, 12 Nifty 50 stocks plunged to 52-week lows, including prominent names such as Maruti Suzuki, M&M, ITC, NTPC, HUL, Bharat Electronics, Reliance Industries, and ONGC.
