Benchmark indices on Thursday closed over 2% lower as a wave of broad-based selling swept the markets. At close, the Sensex was down 1,769 points or 2.1% at 82,497 and the Nifty was down 530 points at 25,267.

The decline was driven by escalating Middle East tensions, SEBI’s tightening grip on F&O trading, and a surging Chinese market luring away foreign investors.

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Further, this was the fourth consecutive session of losses for the indices, resulting in a 3.5% decline in Nifty since September 27. The index has fallen by 2% in October alone, after four months of continuous gains since June.

Among the sectors, Nifty Auto, Financial Services, Realty, Private Bank, and Oil and Gas being the worst-hit, plunging 2.5 to 4.3%. Nifty Bank dipped over 2%, while FMCG, IT, and PSU Bank indices registered losses exceeding 1.5%. On Nifty, the gainers were JSW Steel, ONGC while the biggest losers were BPCL, L&T, Tata Motors, Shriram Finance, Axis Bank among others.

BSE Midcap and Smallcap indices shed 2.3% and 1.8%, respectively. Investors’ wealth eroded by around Rs 9.6 lakh crore, as the market capitalisation of BSE-listed companies slipped to Rs 465.25 lakh crore, from Rs 474.86 lakh crore in the previous session.

Meanwhile, volatility surged, with the India VIX, the market’s fear gauge, spiking nearly 10% to 13.2, signalling heightened market anxiety. Foreign portfolio investors (FPIs) continued their selling, with outflows of over ₹6,000 crore worth of Indian equities in just one session, further contributing to the market’s downturn. Indian rupee ended 14 paise lower at 83.96 per dollar on Thursday versus Tuesday’s close of 83.82.

Mixed global cues were observed from Asian markets, where MSCI’s index of Asia-Pacific shares fell by 1%. This was led by Hong Kong’s Hang Seng index, which declined by 1.6%. During the April-September 2024 period five key indices emerged as underperformers during the period. These include Nifty Oil & Gas, Nifty Energy, Nifty Private Bank, Nifty Bank and Nifty PSU Bank indices.