Indian markets fell sharply on October 8. The Sensex dropped 1,045.46 points, or 1.44 per cent, to close at 71,593.24. The Nifty fell 371.25 points to 22,231.80. It was one of the worst single-day falls of the year.

The selloff came a day after the Reserve Bank of India raised its key rate to 5.50 per cent. Higher rates make borrowing costlier for companies and slow growth. Brent crude also jumped 4.25 per cent to 104.5 dollars a barrel, raising fears of higher inflation.

Foreign investors sold heavily across sectors. Banking, auto and IT stocks were among the biggest losers. Analysts said global trade-war fears added to the selling pressure through the session.

Market experts advised retail investors not to panic. They said sharp falls after rate hikes are common and often short-lived. The direction of crude oil and global cues will decide the market’s next move. Traders expect volatility to stay high.