By Shishir Prashant 
PrashantNews
Indian equities suffered a sharp sell-off on Thursday, with the BSE Sensex plunging 1,045.46 points, or 1.44%, to close at 71,593.24, while the Nifty 50 fell 371.25 points, or 1.64%, to 22,231.80. The Sensex ended at its lowest level in 32 months, while the Nifty closed at an 18-month low.
Investors lost Rs 10 lakh crore in a single day in the market that saw the huge sell-off which was driven by a combination of surging crude oil prices, persistent foreign investor selling, a weaker rupee, elevated US bond yields and the Reserve Bank of India’s shift towards a tighter monetary policy.
The RBI raised its repo rate by 25 basis points to 5.5% on Wednesday and shifted its policy stance to “calibrated tightening”, triggering concerns that higher borrowing costs could weigh on economic activity and corporate earnings.
Brent crude rose above $104 a barrel, intensifying worries over inflation and India’s import bill. The rupee remained under pressure and closed near a record low at around ₹96.78 to the US dollar.
Foreign investors continued to pull money out of Indian equities. According to a media report, foreign investors sold a net ₹46,990 crore over nine sessions, taking their year-to-date outflows to a record $30.4 billion.
Among Sensex stocks, ITC was the biggest loser, falling 4.24%, followed by InterGlobe Aviation (3.36%), Power Grid (3.16%), Bharat Electronics (3.10%), Adani Ports (2.59%), Reliance Industries (2.43%), NTPC (2.43%), Maruti Suzuki (2.33%), Tata Steel (2.28%), UltraTech Cement (2.14%) and Larsen & Toubro (2.12%).
The sharp decline erased several lakh crore rupees in market value and came amid growing concerns over global interest rates, crude prices and continued foreign fund outflows. Analysts said the market could remain volatile until investors get greater clarity on oil prices, foreign flows and the impact of the RBI’s tighter stance.
The sell-off also comes as investors turn their attention to the July-September corporate earnings season, with TCS among the major companies in focus.