Indian equity benchmarks experienced a significant downturn on October 8, 2026, as the Sensex plunged 1088 points to close at 71,550, while the Nifty lost 375 points, settling at 22,228. The sudden afternoon crash was attributed to a confluence of global and domestic factors, notably surging crude oil prices, rising US Treasury yields, and persistent selling by Foreign Institutional Investors (FIIs).
Market Plunge Details
The Sensex, which had closed at 72,638 previously, saw a sharp decline throughout the day. Similarly, the Nifty fell from its prior close of 22,603. This domestic market correction mirrored a broader trend across Asian markets, which also experienced considerable selling pressure.
Global Oil Prices Fuel Inflation Fears
A primary catalyst for the market's slide was the significant surge in Brent crude oil prices. Brent futures climbed over 4% to reach $104.27 per barrel, reigniting inflation concerns among investors globally. This increase in oil prices contributed to a negative sentiment that spread across various equity markets.
Asian Markets Under Pressure
Major Asian indices also registered sharp declines. Japan's Nikkei plunged 750 points to 69,285, while Hong Kong's Hang Seng crashed 450 points to 23,682. Taiwan Weighted fell 493 points, and South Korea's Kospi lost 178 points, indicating widespread investor apprehension.
Rising US Treasury Yields and FII Outflows
The US 10-year Treasury bond yield reaching 5.32% — after hitting a high of 5.36% on Wednesday, its highest level since 2002 — further exacerbated market worries. Elevated bond yields typically hurt equities by increasing borrowing costs for companies and consumers. This rise in yields is linked to the global energy shock, potentially driven by the Iran war, and the ongoing growth of US national debt.
Domestically, Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth Rs 6,121 crore on Wednesday. This marked the ninth consecutive session of FII outflows, signaling a lack of conviction in the Indian market.
Expert Insight
"Elevated oil prices and US Treasury yields continue to warrant investors' attention, while the persistent FII selling and mixed global cues limit conviction," stated Hitesh Tailor, a technical research analyst at Choice Broking.
Impact on Individual Stocks
Several individual stocks felt the brunt of the market downturn. Paytm and One Mobikwik each saw their shares fall by 7%. Pine Labs declined by 3.1% amidst reports suggesting a potential delay in the October 15 rollout of merchant fees on certain digital payment transactions. Additionally, ITC shares dropped 3% following block deals involving approximately 4.4 million shares at a discount.