The Indian stock markets witnessed a sharp sell-off on October 8, with the 30-share BSE SENSEX crashing 1.46% or 1,045.46 points to end at 71,593.24, while the 50-share NIFTY50 plunged 1.64% or 371.25 points to close at 22,231.80. According to CNBC TV18, the NIFTY extended its decline for a second straight session, plunging 371 points to close at 22,231, its lowest level since April 7, 2025. The latest fall has pushed the NIFTY more than 10% below its recent swing high of 24,774 recorded in early August and is now nearly 16% below its all-time high of 26,373. The decline came after the NIFTY had already tanked as much as 1% on October 5, touching the session's low of 22,546.30. However, the market showed resilience by recovering from the day's low, demonstrating some recovery from intraday lows. Market breadth was negative, with 2,950 stocks advancing on the NSE against 660 declines, while 112 stocks remained unchanged, as reported by The Economic Times. Investors' wealth declined by ₹2.63 lakh crore to ₹471 lakh crore during the session, with BSE-listed companies losing nearly ₹13 lakh crore in market value over the past two sessions.
The Reserve Bank of India's monetary policy committee made significant changes to its stance, with the central bank raising the repo rate by 25 basis points to 5.50% - its first rate hike since February 2023. As reported by market sources, the six-member MPC changed its stance to 'calibrated tightening' from 'neutral' and also underscored that a rate cut is unlikely in the near term given the current conditions. This policy shift contributed to the cautious investor sentiment that weighed on market performance throughout the trading session, with the market coming under heavy selling pressure even as the RBI implemented the rate hike. "Indian equities came under sharp selling pressure as the Nifty slipped around 1.5% and the Sensex over 1%, reflecting a combination of hawkish RBI policy, elevated crude and persistent FII outflows," said Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital. "Brent near $104 raises imported inflation and margin concerns, while the rupee near ₹96.8 adds another layer of pressure. The sell-off was broad-based, with metals, realty, energy, auto and pharma among the weakest, signalling de-risking rather than sector-specific weakness," Kasat added. The combination of a higher growth outlook and a more hawkish policy stance could keep bond yields elevated, with the 10-year government bond yield currently around 7.27% and could move towards 7.5% over the next six months according to market expectations.
Selling was broad-based across sectors, with only three Nifty constituents—Infosys, Tech Mahindra and Axis Bank—managed to close higher, while Adani Enterprises, JSW Steel and ITC were among the biggest losers. Other major declining sectors included ITC, JSW Steel, Adani Ports, Apollo Hospitals, and many others. However, IT stocks held the ground in today's weak session and traded in the green, with the Nifty IT index up 0.69%. Except for the Nifty IT, all the sectoral indices were trading in the red and crashed over 1.5%. Among Nifty constituents, Adani Enterprises and ITC were the top laggards, while ITC and JSW Steel emerged as the biggest gainers. The broader market showed relative resilience with Nifty Midcap 100 declining 0.63% and Nifty Smallcap 100 gaining 0.30%. "Metals remained the key drag, followed by rate-sensitive realty, auto and consumer durables stocks, while banking stocks ended with modest gains," said Ajit Mishra, SVP – Research, Religare Broking. "IT remained relatively resilient ahead of TCS results, highlighting earnings visibility amid volatility," according to PL Capital's analysis. The sell-off intensified across the broader market, with the Nifty Midcap 100 and Nifty Smallcap 100 indices plunging as much as 3%, as reported by The Economic Times.
Technically, the NIFTY closed below its monthly 50-SMA, confirming deterioration in the medium-term price structure. As per The Economic Times, the Nifty broke the 22,550–22,600 and 22,400 support zones, placing the psychological 22,000 level in focus. The NIFTY breached the previous swing-low support at 22,217 and the April 2026 low of 22,182 during the session, signalling a further deterioration in market sentiment and an intensification of the ongoing downtrend. The NIFTY opened lower and remained range-bound through the session, moving within a band of nearly 169 points - its narrowest trading range in the past six sessions. The 22,080-22,000 zone, corresponding to the Nifty's 2025 swing-closing levels, is now an important support area, with a decisive break below this band potentially accelerating the decline towards 21,750. Market breadth was negative, with 2,353 losers against 2,018 gainers on the BSE, while investors' wealth declined by ₹2.63 lakh crore to ₹471 lakh crore. The Nifty Midcap 100 plunged 2.53% to end near a six-month low, while the Nifty Smallcap 100 declined 2.34%, as reported by CNBC TV18.
Pressure on the rupee persisted despite the currency's relatively modest decline on the day. The rupee weakened 1 paise to close at 96.78 per dollar, after hitting a record low of 97.10 during the session. Rising crude oil prices and sustained foreign institutional outflows continued to weigh on the currency. Brent crude surged 4% to around $104 a barrel, while the Indian 10-year government bond yield climbed to around 7.2%, its highest level in two years. The US 10-year Treasury yield was hovering near 5.3%, its highest level since 2002, after minutes from the Federal Reserve indicated that most officials expected another rate hike this year. With multiple macro factors working against equities and the RBI signalling a tighter policy stance, investors may increasingly look to the earnings season for a potential near-term catalyst. The earnings season kicked off with TCS, with Canara HSBC Life Insurance, Anand Rathi Wealth and Can Fin Homes among the companies scheduled to report on Friday.
