Indian stock markets witnessed sharp declines on October 1 as benchmark indices tumbled. The Sensex dropped more than 1,100 points intraday before closing nearly 900 points lower around 71,400. The Nifty 50 also slipped over 380 points, falling below 22,300. Broader markets were equally weak, with the BSE MidCap index losing 1.5% and both Nifty Smallcap 100 and Nifty Midcap 100 declining more than 1%.
Foreign portfolio investors remained the biggest drag on sentiment. Data showed FPIs sold equities worth ₹10,148 crore on September 30, marking the largest single day outflow in six months. Their total selling in September reached ₹51,999 crore. Domestic institutional investors tried to cushion the fall, buying ₹11,272 crore on the same day, taking their monthly purchases to ₹80,619 crore.
Another factor weighing on equities was the surge in US bond yields. The 10 year yield climbed to 5.3%, making American fixed income assets more attractive and reducing appetite for emerging markets like India. Crude oil prices added to the pressure, remaining volatile near 98 dollars per barrel, raising inflation concerns and weakening the rupee outlook.
Overall, the combination of foreign selling, global yield pressures, and crude volatility created a risk off mood, dragging Indian markets lower despite domestic support.