Indian stock markets drop sharply for third day as Sensex falls over 700 points

Indian stock markets suffered heavy losses on Thursday, 22 October, marking three straight sessions of declines for equity benchmarks. The Sensex dropped over 700 points, or nearly 1 percent, to touch an intraday low of 73,005. The Nifty 50 slipped over 250 points, or 1.1 percent, to reach a low of 22,555. According to the Economic Times, this sharp selloff on expiry day wiped out nearly Rs 5 lakh crore in investor wealth.

Market Spread

The downward pressure hit the entire market rather than just large companies. Selling was even deeper in mid- and small-cap segments, with the BSE 150 Midcap and 250 Smallcap indices crashing by up to 2 percent. Sectoral indices and overall market breadth stayed firmly negative throughout the trading session. Over the past three losing sessions combined, the 30-share Sensex has tumbled more than 1,700 points, which equals a 2.3 percent drop. Meanwhile, the Nifty has crashed nearly 600 points, or 2.6 percent, over the exact same three-day stretch.

Key Pressure Points

Market experts point to multiple external pressures driving the continuous fall. Brent crude oil prices have climbed past 110 dollars per barrel, raising serious worries about how costly fuel will hurt both corporate profits and the wider Indian economy.

Context

Stock markets often react sharply to rising global crude oil prices because India imports a vast majority of its energy needs. When fuel costs jump, it tends to increase inflation and squeeze company profit margins across many industries at once.