Indian equity benchmarks crashed on October 8 as sustained selling by foreign investors dragged the market lower.

At around 12:02 PM, the Nifty50 was trading at 22,357.85, down 245 points or 1.08 per cent. The BSE Sensex stood at 71,947.85, down 691 points or 0.95 per cent.

Sustained selling in large-cap stocks by foreign institutional investors drove the fall. With the US 10-year bond yield hovering above 5.3 per cent, analysts say FIIs will continue to sell on every rally.

The selling comes a day after the RBI raised the repo rate by 25 basis points to 5.50 per cent. Higher oil prices have added to the pressure on sentiment.

Market watchers say the trend reflects caution rather than panic. But with global bond yields elevated and crude above $100, the near-term outlook stays fragile.

The fall reflects a catch-up in domestic positioning after the RBI’s policy decision, a currency trader said. Importers may step up hedging if the rupee weakens further.

With the festive season underway, domestic investors are watching whether local buying can offset foreign outflows. Analysts advise caution on leveraged positions.