Why Is Stock Market Down Today, October 8, 2026?
Sensex fell 700 to 800 points to near 71,900 and Nifty 50 slipped over 1% to 22,350 on October 8, as the RBI's repo rate hike, Brent crude above USD 100 and FII selling hurt sentiment.
Indian equity benchmarks opened the October 8 session on the back foot and stayed under pressure through the day, with the BSE Sensex losing roughly 700 to 800 points to trade near the 71,900 mark and the NSE Nifty 50 dropping more than 1% to hover around 22,350. The fall wiped out several lakh crore of investor wealth, and the weakness was spread across most sectors rather than limited to a few counters. Three factors explain why the stock market is down today: a hawkish turn by the Reserve Bank of India, a jump in global crude prices and continued selling by foreign investors.
Information technology was the one bright spot, which kept the losses from getting deeper.
FII Selling Continues
Foreign Institutional Investors (FIIs) have stayed net sellers over several straight sessions, and provisional exchange data showed the outflows hitting index heavyweights such as Reliance Industries and Adani Ports, along with some utility stocks. Rising US Treasury yields are a big part of the story, as dollar assets now offer attractive risk-free returns and overseas funds are moving money out of emerging markets like India. ICICI Bank Stock Update: Share Price Dips Intraday After RBI Rate Hike.
Crude Oil Crosses USD 100
Brent crude moved above USD 102 per barrel amid fears of supply disruption in the Middle East. India imports most of its oil, so costlier crude widens the import bill, puts pressure on the rupee against the US dollar and makes it harder to keep inflation in check. If input costs stay high, margins of consumer-facing and industrial companies could take a hit. Stocks To Buy or Sell Today, October 8, 2026: Tata Power, Jubilant FoodWorks, Senco Gold Among Shares Likely To Remain in Focus on Thursday.
RBI Hikes Repo Rate To 5.5%
The RBI raised the repo rate by 25 basis points to 5.5%, its first hike in several years, and changed its policy stance from 'neutral' to 'calibrated tightening' to contain stubborn price pressures. A hike was partly priced in, but the tone of the guidance surprised some market participants, who now expect borrowing costs to stay higher for longer. Banking, real estate and consumer cyclical stocks, which are sensitive to interest rates, saw the sharpest selling.
IT Stocks Offer Support
Tata Consultancy Services (TCS), Infosys and HCL Technologies ended up gaining ground, helped by currency movements and optimism ahead of their quarterly earnings. The defensive pocket cushioned the broader market.
What Next For The Market?
Market strategists say volatility is likely to stay high until crude prices settle and there is more clarity on the global interest rate path.
(The above story first appeared on LatestLY on Oct 08, 2026 03:17 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
