Indian equities sank to six-month lows as foreign investors dumped shares at the fastest pace in half a year. On September 29, the Sensex fell 242.65 points to 72,529.07 while the Nifty slipped 64.05 points to 22,716.20, touching an intraday low of 22,569.65.

Foreign institutional investors sold ₹9,980.22 crore of Indian equities in a single session — their largest daily sell-off in about six months. They had already offloaded ₹5,353.22 crore the previous day, taking September’s cumulative outflow to nearly $2.7 billion. Domestic institutions bought ₹6,952.71 crore, cushioning the fall.

The sell-off was triggered by a toxic mix: Brent crude hovering between $103.5 and $107 on the US-Iran standoff, the rupee breaching 96 to the dollar despite RBI intervention, and fears of more Fed rate hikes. Pharma stocks bucked the trend, rising on news of US tariff exemptions for Indian specialty drugs.

The RBI’s monetary policy committee meets October 5-7, with the repo rate at 5.25%. With inflation risks from oil and a sliding rupee, traders expect the central bank to stay on hold.