Why did market crash today?
5 key factors behind Rs 5 lakh crore wipe out TIMESOFINDIA.COM Stock Market Crash Today Synopsis Stock market Crash Reason: The Indian stock market endured a notable downturn, with both Sensex and Nifty witnessing considerable drops.
In a single day, Foreign Institutional Investors offloaded equities worth more than Rs 10,000 crore.
The climb in bond yields added to negative investor sentiment, exacerbating market volatility.
Additionally, the rupee weakened against the dollar, pushed down by soaring Treasury yields.
By Debaroti Adhikary, ETMarkets.com XPeers Last Updated: Oct 01, 2026, 03:51:00 PM IST 11 Follow us The Indian stock market plunged sharply on Thursday, with Sensex hitting a fresh 52-week low and Nifty breaching key technical levels as massive FII outflows, soaring bond yields and other factors spooked investors for the fourth consecutive session.ADVERTISEMENT After plunging more than 1.5% each, Sensex and Nifty recovered some losses late in the afternoon, but still closed deep in the red.
The selloff wiped off Rs 5 lakh crore from the total market capitalisation of all companies listed on BSE, dragging it down below Rs 467 lakh crore.During the day, the Sensex had crashed as much as 1,200 points to hit a fresh 52-week low of 71,292.
The Nifty 50 had dropped nearly 400 points to slip below 22,300, wiping out around Rs 10 lakh crore in market wealth at the day's low.
Maruti Suzuki shares dropped 5% to lead losses on Sensex, while M&M, Tata Steel, Adani Ports and ITC shares fell around 3% each.
Power Grid, HUL, Eternal, L&T, Reliance Industries, NTPC, BEL and UltraTech Cement meanwhile fell around 2% each.
IT stocks however bucked the trend to record sharp gains, with Infosys jumping more than 4%.
Broader markets plunged deeper, with Nifty Midcap 100 and Nifty Smallcap 100 indices crashing around 1% each.
This came as India VIX, which measures volatility in the market, spiked over 7% to 14.44 as the selloff intensified in the afternoon.Among the sectors, Nifty Auto crashed more than 3% to lead losses, while Nifty Metal, Nifty FMCG and Nifty Consumer Durables fell around 2% each.
