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The Indian stock market suffered heavy losses in Thursday’s trade, September 8, in a broad-based sell-off, dragging the key indices down nearly 2% as investor sentiment was hit by a sharp jump in crude oil prices and surging global bond yields.
Investors now appear increasingly concerned about the outlook for inflation and economic growth, given elevated crude oil prices and the RBI’s recent 25-basis-point rate hike, which has raised fears that the central bank could maintain a tighter monetary policy stance or resort to further rate hikes if inflationary pressures persist.
Domestic equities opened the session lower, and selling accelerated in the first half of the session, which deepened through the close, wiping out over ₹10 lakh crore of investors’ wealth.
The Nifty slumped 1.71% in trade to settle at 22,216, its lowest level in 2026, while the Sensex concluded the session at 71,461, down 1.62% from the previous close. The broader markets were hit hard, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices crashing 2.71% and 2.53%, respectively.
All sectoral indices slumped in trade, with metals leading the losses, followed by realty, media, oil and gas, auto, pharma, cement and FMCG. The price of Brent crude oil jumped nearly 4% on Thursday as rising tensions in the Middle East added to uncertainties over supplies.
The US and Iran have yet to reach a deal to end their war, and a report published Wednesday by The Atlantic, citing two unnamed officials, said the White House had asked the Pentagon to develop strike options against Iran before the midterm elections in November, AP reported.
Stocks were also affected by rising yields in the bond market. The yield on the 10-year US Treasury stayed near a multi-decade high after minutes released Wednesday from the US Federal Reserve’s most recent meeting showed that most Fed officials expect another interest rate hike this year.
In September, the Fed raised rates for the first time in three years by a quarter percentage point, taking the target range to 3.75% to 4.00%.
Among other key Asian markets, Japan’s Nikkei 225 fell 1.4% to 69,042.11, while South Korea’s Kospi lost 2.6% to 6,625.93. Hong Kong’s Hang Seng declined 1.3% to 23,809.66, while the Shanghai Composite Index slipped 0.8% to 3,811.90.
Australia’s S&P/ASX 200 slid 0.8% to 8,660.90. Taiwan’s Taiex dropped 1%, while India’s Sensex was down 1.2%.
Vipin Kumar, AVP-Research at Globe Capital Market, said the Nikkei index continued its profit-taking toward the 69,000-spot level, as mentioned in the previous day’s post. Going forward, he said they will wait for stability in the 69,000–68,300 spot zone before initiating fresh positions.
On the Kospi index, Kumar said it further extended its sideways journey within its 3-month-long congestion range, with immediate support at the 6,580-spot level. He said a decisive breach below 6,580 could drag the index toward the lower band of the congestion range around 6,400.
On the Dow Jones index, Kumar said it extended its sideways journey within the 50,500–51,900 spot zone. A decisive break on either side of this range could trigger the next short-term swing in that direction, he added.
Commenting on the benchmark Nifty index, Kumar said it fell sharply to test its previous swing support placed around the 22,180-spot level. He said the chart structure remains weak as long as the index stays below the 22,850 spot level on a closing basis. A decisive fall below 22,180 could drag it toward the positional support level of 21,740, he added. Persistent FII selling amid rising US bond yields, alongside a depreciating INR, remains a key concern for domestic equity markets, according to Kumar.
Rupak De, Senior Technical Analyst at LKP Securities, said the index extended its losses as it slipped below the previous session's low. Bears continued to dominate throughout the session, giving no respite to the bulls. The index sustained below critical moving averages, from the hourly chart to the weekly chart, indicating continued weakness.
Everything looks bleak, and this sentiment might remain the same for a few more days, De said. The RSI remains in a bearish crossover and has stayed in the oversold zone. On the lower end, support is placed at 22,180, below which the index might extend its losses towards 22,000. On the higher end, resistance is placed at 22,350, he further added.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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