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Stock Market Crash: 10 FEAR Factors Behind ’10.18 Lakh Crore Loss in Minutes
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CNBC Awaaz•01-10-2026, 14:30
Stock Market Crash: 10 FEAR Factors Behind ’10.18 Lakh Crore Loss in Minutes
- •The stock market witnessed a massive sell-off, with the total market value decreasing by ’10.18 lakh crore in minutes due to falling share prices.
- •Rising US 10-year bond yields (5.33%-5.34%) made US government bonds more attractive, leading big investors to question the risk in shares.
- •A strengthening dollar index (near 102) raised concerns, as attractive dollar-denominated investments can impact money flow into markets like India and increase borrowing costs for companies.
- •Crude oil prices above $100 per barrel (Brent around $98.3) fueled fears of increased freight, air travel, and manufacturing costs, potentially squeezing company profits or burdening consumers.
- •Weak September auto sales figures, particularly a 3% drop in the Nifty Auto index, indicated potential consumer reluctance for big purchases, raising investor concerns.
- •Concerns over low rainfall and drought in Maharashtra sparked fears of reduced farmer incomes and rising food prices, potentially impacting rural consumption and company sales.
- •The possibility of interest rate hikes in October, coupled with continuous selling by foreign investors (around ’45,000-46,000 crore in September), added to market anxiety.
- •Uncertainty in West Asia regarding oil and supply due to unresolved conflicts, along with a weak rupee (crossing ₙ96 per dollar), further pressured the market.
- •The upcoming three-day market closure for Gandhi Jayanti, followed by a weekend, led some investors to lighten positions due to the inability to react to potential global news.
Key Questions Answered
According to the business update given on Thursday, October 1, the total market value of the market decreased by ₹10,18,546 crore, or about ₹10.18 lakh crore.
Key factors included US 10-year bond yields reaching about 5.34%, the dollar index hovering near 101.663, crude oil remaining above $100 per barrel, foreign portfolio investors withdrawing around ₹46,000 crore in September, and the rupee crossing the ₹96 per dollar mark.
Friday, October 2, is a holiday for Gandhi Jayanti, which is followed by Saturday and Sunday, making Monday, October 5, the next regular trading day as recorded in the NSE calendar.
