2 hrs ago
Rate Fears Push Indian Stocks to 18-Month Low
Indian stocks fell sharply on Thursday, with the Nifty reaching its lowest closing level in 18 months.
Many kinds of shares went down, not just a few large companies.
Overseas investors sold a large amount of Indian shares.
Investors are worried that higher interest rates and expensive oil could make prices rise and slow the economy.
The Reserve Bank of India had raised its main interest rate the day before.
Higher interest rates can make borrowing more expensive.
But one fund manager said signs such as rising car and cement sales suggest demand in India is still healthy.
He also said some investments may now be closer to fair value.
The Nifty 50 fell 1.64% on Thursday to 22,231.80, its lowest close since April 7, 2025.
The Sensex dropped 1.44% to 71,593.24, while mid-cap and small-cap indexes also declined.
Foreign portfolio investors net sold ₹12,943 crore in shares on Thursday, their biggest single-day selling since May 29, according to provisional data.
The Reserve Bank of India raised its repo rate by 25 basis points to 5.50% and shifted to a calibrated-tightening stance.
Surging oil prices and global bond yields added to concerns about inflation and further market pressure, though DSP Mutual Fund’s Kalpen Parekh said domestic demand remained healthy.
- Who
- Indian stock markets, foreign portfolio investors, and the Reserve Bank of India.
- What
- The Nifty 50 and Sensex fell as investors responded to rate and inflation concerns.
- Where
- India.
- When
- Thursday, October 8; the Reserve Bank of India raised its repo rate on Wednesday.
- Why
- Investors were concerned about higher interest rates, rising global bond yields, foreign selling, and the risk that expensive oil could keep inflation elevated.
Market risks
Domestic resilience
Inflation and further losses
Market risks
The article cites rising oil prices, global bond yields, foreign selling, and the recent rate increase as risks that could sustain inflation and pressure stocks.
Domestic resilience
Kalpen Parekh said the Indian economy was doing fine, citing rising auto and cement sales, steady power demand, and spare capacity.
Market valuations
Market risks
The Nifty’s breach of its previous 52-week low was described as a sign of mounting selling pressure and increased risk of a deeper downturn.
Domestic resilience
Parekh said valuations had moved closer to fair value in banks, insurance companies, technology, and other areas.
Key facts
- Nifty 50 close
- 22,231.80, down 1.64%; lowest close since April 7, 2025.
- Nifty 50 intraday low
- 22,179, slightly below its previous 52-week low of 22,182.
- Sensex close
- 71,593.24, down 1.44%; lowest level since February 13, 2024.
- Foreign investor selling
- ₹12,943 crore net sold on Thursday, according to provisional BSE data.
- Repo rate
- Raised by 25 basis points to 5.50% by the Reserve Bank of India.
- Brent crude
- Rose 4.8% to $104 a barrel on Thursday.
- Market capitalization
- BSE market capitalization fell by ₹9.96 lakh crore on Thursday.
Quotes
Kalpen Parekh
Managing director and chief executive officer of DSP Mutual Fund
“The key risks are a sharp rise in global interest rates or oil prices, particularly if the Middle East conflict escalates. Otherwise, valuations have already come closer to fair value in banks, insurance companies, tech, and others.”
livemint.com
Sources
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