Nifty 50 and Sensex plunge to multi-month lows as an RBI rate hike and continuous FPI outflows trigger a massive market sell-off. Read the full analysis.
Market Index Declines and Key Levels
The Nifty 50 index fell 1.64% to close at 22,231.80 on October 8, 2026, hitting its lowest closing point since April 7, 2025. During the session, the index hit an intraday low of 22,179, dipping below its previous 52-week low of 22,182. The BSE Sensex 30 also fell, ending down 1.44% at 71,593.24, its weakest position since February 13, 2024.
- Nifty 50 close: 22,231.80
- Sensex 30 close: 71,593.24
- BSE market cap loss on October 8: Rs 9.96 lakh crore
- Two-day BSE market cap decline: Rs 12.64 lakh crore
The latest drop represents the ninth consecutive week of losses for the Nifty 50, which has now declined 15.7% from its 52-week peak. BSE-listed companies saw a market capitalization decline of approximately Rs 12.64 lakh crore over the two trading sessions ending October 8, 2026.
Monetary Policy and Sector Impacts
The market decline follows the Reserve Bank of India’s decision to raise the repo rate by 25 basis points to 5.50%, while shifting its policy stance toward calibrated tightening. The market reaction was broad-based across multiple indices and sectors.
- Nifty Smallcap 250 decline: 2.4%
- Nifty Midcap 150 decline: 2.53%
- Realty sector fall: 3.16%
- Auto sector fall: 2.49%
- Consumption sector fall: 2.15%
External pressures in the energy sector also contributed to market anxiety as global crude oil prices surged to over $104 per barrel. Investor sentiment was further dampened by persistent foreign fund outflows moving toward safer assets due to rising global bond yields.
Institutional Activity and Selling Pressure
Foreign Portfolio Investor activity drove significant selling pressure, recording net sales of Rs 12,943 crore on October 8, the highest single-day figure since May 29. National Securities Depository Ltd data indicates that in September and October, FPIs net sold shares totaling Rs 57,979 crore.
- FPI net sales on October 8: Rs 12,943 crore
- Combined September and October FPI net sales: Rs 57,979 crore
- ITC stock decline following bulk deals: 4.03%
- HDFC Bank FPI holding in September quarter: 39.39%
Bulk deals on the BSE saw entities such as GQG Partners Emerging Markets Equity and Goldman Sachs Trust II sell large quantities of ITC shares, leading to a 4.03% drop in that stock. Meanwhile, HDFC Bank saw its domestic institutional investor shareholding surpass that of FPIs for the first time in over a decade as its FPI holding dropped to 39.39% in the September quarter.
