Market mayhem: Investors lose Rs 20 lakh crore in 4-day crash

Mumbai (The Uttam Hindu) : Indian stock markets closed in the red for the fourth consecutive session as investors panicked over stable energy prices, volatility in bond yields and fear of rising interest rates.

At market close, the BSE Sensex fell 570.59 points or 0.79 per cent to 71,909.70 and the Nifty 50 fell 198.50 points or 0.88 per cent to 22,421.95.

The stock market crash on Thursday, October 1st, resulted in a market cap loss of ₹10,18,546 crore (approximately ₹10.18 lakh crore). Meanwhile, ₹20 lakh crore has been lost in just four days. This is a trading picture, which can change with changing prices. Hearing about such a large amount is frightening.

Major stock market indices fell sharply during the day's trading, with the BSE Sensex falling to a new calendar year low. The Sensex fell 1,280 points during the day, falling from a high of 72,573 to a low of 71,293. During this period, the index also fell below its previous 2026 low of 71,545, set on April 2, 2026.

Meanwhile, the NSE Nifty 50 index fell 1.7 percent, or 394 points, during the day, hitting a low of 22,217. The day's high was 22,611. The index had hit a calendar-year low of 22,183 in April.

Bajaj Auto, Maruti Suzuki, Shriram Finance, Tata Steel, Grasim Industries, Eicher Motors and Mahindra & Mahindra were the biggest losers in the Nifty50 index, while Infosys, HDFC Life, HDFC Bank, SBI Life, Max Health and TCS were the biggest gainers.

In the broader market, Nifty Midcap 100 and Nifty Smallcap 100 closed lower by 1.01 per cent and 0.97 per cent, respectively.

Sector-wise, Nifty Auto, Nifty Metal, Nifty Media and Nifty FMCG saw the biggest decline, while Nifty IT saw the biggest increase.

A market expert explained that the market decline was primarily driven by external factors; bond yields have reached multi-year highs and crude oil prices remain elevated, raising concerns about the economic outlook for 2026-27. Meanwhile, investors within the country are also cautious about the second quarter (Q2) results and the RBI policy due next week.

The expert further said that it is expected that Q2 earnings will be weaker than Q1, as the impact of operating costs was realized in Q1, which may not be the case this time.

Meanwhile, the RBI, which was more accommodative in its previous policy stance, may now consider a change in its stance given global inflationary pressures and the need to support the rupee. Nevertheless, it is important to note that India's economy remains strong and well-positioned to address these challenges.

“Long-term investors can maintain their investments and gradually invest more by taking advantage of the market weakness, while short-term investors can adopt a 'wait and watch' strategy until strong steps by international institutions and governments bring stability to the global financial markets,” the expert said.