Indian equities faced a sharp sell-off, with the Sensex and Nifty50 both falling heavily during intraday trade. The decline reduced the market value of BSE-listed companies by about Rs 10.08 lakh crore before a partial recovery limited the loss by the close.

The 30-share BSE Sensex fell 1,147.15 points, or 1.58%, to 71,333.14 during the session. The NSE Nifty50 dropped 390.40 points, or 1.73%, to 22,230.05. Both benchmarks recovered some ground later in the day.

By market close, the Sensex was down 570.59 points at 71,909.70. The Nifty ended near 22,421, around 200 points lower. Selling was particularly strong in midcap and smallcap shares, with both indices trading more than 1% lower.

Market value and volatility

The India VIX, a measure of market volatility, rose 13.82% to 15.36. The total market capitalisation of BSE-listed companies fell from Rs 471.86 lakh crore in the previous session to about Rs 461.77 lakh crore during the sell-off.

After the recovery following the market close, the total loss was reported at Rs 6 lakh crore, leaving BSE market capitalisation at Rs 466 lakh crore.

Foreign selling and global pressure

Foreign investors sold more than Rs 10,148 crore worth of shares on 30 September. Across the final 2 sessions of September, their share sales exceeded Rs 20,000 crore. Domestic institutional investors, however, bought shares worth Rs 11,271 crore during the Wednesday session.

US borrowing costs also remained a pressure point. The US 10-year bond yield rose to 5.3%, making that market more attractive to investors, according to the report.

Brent crude added to the pressure. Futures for December delivery rose from $96.55 per barrel at 11:03 AM AM to a high of $100.20 per barrel by one:07 PM.

The rupee also weakened past the 96-per-dollar level, reaching a low of 96.19 against the US dollar. The decline came amid continued foreign fund outflows and higher crude prices, which were identified as major factors behind the selling in the market.

Conclusion

The session combined sharp falls in the main equity indices with pressure from foreign outflows, higher US bond yields, rising crude prices and a weaker rupee. Although the market recovered part of its intraday losses, volatility remained elevated and the market capitalisation decline was still substantial.

Frequently Asked Questions

Q. How much did the Sensex fall during intraday trading?

The Sensex fell 1,147.15 points, or 1.58%, to 71,333.14 during intraday trading.

Q. How did the Nifty50 perform?

The Nifty50 dropped 390.40 points, or 1.73%, to 22,230.05 during the session.

Q. What was the Sensex closing level?

The Sensex closed at 71,909.70, down 570.59 points.

Q. How much did BSE market capitalisation decline?

The decline reached about Rs 10.08 lakh crore during trading before narrowing to Rs 6 lakh crore after the recovery.

Q. Why did foreign investors add pressure?

Foreign investors sold more than Rs 10,148 crore of shares on 30 September and more than Rs 20,000 crore across the final 2 sessions of September.

Q. What happened to the rupee?

The rupee fell past the 96-per-dollar level and reached 96.19 against the US dollar.

Q. How did crude oil prices move?

December Brent futures rose from $96.55 per barrel at 11:03 AM AM to $100.20 per barrel by one:07 PM.