Indian Stock Market Crash: Why Sensex and Nifty Plunged on October 8, 2026

The Indian stock market today witnessed a severe sell-off on October 8, 2026, as a combination of domestic policy shifts and global economic pressures triggered a massive crash. The BSE Sensex plunged 1,045.46 points (1.44%) to close at 71,593.24, while the Nifty 50 fell 371.25 points (1.64%) to settle at 22,231.80 [1]. This decline erased over ₹10 lakh crore from the combined market capitalisation of BSE-listed companies [2].

The RBI's 'Calibrated Tightening' Spark

A primary driver for the decline was the Reserve Bank of India's (RBI) unexpected policy shift. For the first time in nearly four years, the RBI raised its repo rate. However, analysts suggest the more critical signal was the change in policy stance from 'neutral' to 'calibrated tightening' [2]. This move is seen as an effort to anchor inflation expectations and create a buffer against volatile global conditions.

Global Pressures: US Bond Yields and Oil Prices

External factors amplified the domestic crash, making emerging-market equities less attractive compared to safer debt instruments:

• US Treasury Yields: Bond yields hit 24-year highs, with the 30-year yield climbing above 5.71% and the 10-year benchmark note rising past 5.3% [1].
• Brent Crude Spike: Oil prices rose above $102 per barrel following a 2% increase, driven by heightened attacks on tankers in the Strait of Hormuz [1].

FII Exodus and Market Impact

Foreign Institutional Investors (FIIs) continued a relentless selling streak, offloading shares worth over ₹6,121 crore on October 8 alone [2]. This extended a nine-day streak of outflows totaling nearly ₹57,000 crore since September.

Top Gainers and Losers

Category	Key Stocks	Movement
Biggest Losers	ITC, Adani Ports, IndiGo, Power Grid, Reliance Industries	Up to 4% decline
Supportive Gainers	Titan, TCS, Infosys, Tech Mahindra, HCL Tech	Up to 2% gain

Market experts warn that Nifty large-caps may remain under pressure as long as US 10-year bond yields hover above 5.3%, suggesting that a reversal will only occur once FIIs return as buyers.