Two-day fall explained: Sensex has lost about 1,475 points since October 6

The Sensex closed at 73,067.81 on October 6.

It closed at 71,593.24 on October 8.

That is a fall of about 1,475 points in two sessions.

Oil, foreign selling and the RBI’s rate hike were the main factors.

This report is not investment advice.

The Nifty Metal index fell 3.55%, the Nifty Realty index fell 3.16% and the Nifty Oil and Gas index fell 2.52%.

Infosys, Tech Mahindra and Axis Bank were among the Nifty gainers.

Adani Enterprises, JSW Steel and ITC were among the biggest Nifty losers.

Brent crude was above $102 in early trade and stood at $104.47 a barrel in the afternoon, according to Kotak Neo.

WTI November futures were at $91.95 a barrel.

Business Standard’s close report carried the headline that oil tops $104 and that the volatility index jumped 10%.

Elevated crude prices were tied to Middle East supply concerns, attacks on ships in the Gulf and the Strait of Hormuz.

Rising US bond yields and persistent foreign institutional investor selling also weighed on the market.

The RBI had raised the repo rate by 25 basis points to 5.50% on October 7, its first hike since February 2023.

Kotak Neo said that the weak trend is likely to persist while oil stays elevated and foreign investors keep selling.

On October 6, the Sensex had closed at 73,067.81 and the Nifty at 22,776.10.

From that close, the Sensex has lost about 1,475 points in two sessions and the Nifty about 544 points.

On MCX, December gold futures were at Rs 1,49,300 per 10 grams, up 0.13%, and silver was at Rs 2,21,440 a kg, down 0.95%.

India imports most of the crude oil it uses, so a rise in global prices weighs on inflation and the rupee.

The India VIX measures expected volatility, and a jump in it means traders expect bigger swings.

Dalal Street, Mumbai (file image), Wikimedia Commons, CC BY-SA 3.0