Stock Market Today: Over Rs 20 Lakh Crore Wiped Out In 30 Days — What Does A Market Crash Mean? Its Impact Explained
The Indian stock market has faced heavy selling pressure, wiping out over Rs 20 lakh crore in market capitalisation. Know what a market crash means and how it affects investors.
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Stock Market Today: The Indian stock market has been under pressure for long now, and the market is in its most difficult 30 days with more losing streaks than winning.
It has recently faced massive selling pressure, costing more than expected. It amounts to over Rs 20 lakh crore in market capitalisation wiped out during the truncated week ending October 2, 2026.
On October 1, 2026, the Indian stock market witnessed a sharp sell-off, with around Rs 8.7 lakh crore to Rs 9.5 lakh crore wiped out in a single trading session. The Sensex plunged over 1,000 points intraday, highlighting the intensity of selling pressure and growing investor concerns.
In the broader picture, investor wealth erosion has crossed Rs 26 lakh crore. For the whole time, the Sensex and Nifty have remained under pressure amid heavy foreign investor selling.
The markets have also been taking pressure from rising global bond yields, elevated crude oil prices and rupee depreciation.
But when the stock market catches a cold, does everyone lose money? Not exactly. A market crash can reduce the value of investments. On the other hand, understanding what happens behind the numbers is crucial before making investment decisions.
Key Highlights Of The Stock Market Sell-Off
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Market Capitalisation: The total market capitalisation of BSE-listed companies fell from Rs 4,71,86,292 crore at the opening to Rs 4,62,71,545 crore by 1:45 pm.
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Rs 9 Lakh Crore Wiped Out: The sharp decline erased around Rs 9 lakh crore in market capitalisation within just a few hours.
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Heavy FII Selling: Foreign Institutional Investors (FIIs) continued their selling spree, putting additional pressure on Indian equities.
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Rs 10,000 Crore Sold: On September 30, FIIs sold Indian equities worth more than Rs 10,000 crore.
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Rs 20,000 Crore In Two Sessions: FII selling crossed Rs 20,000 crore over the two sessions preceding the October 1 market sell-off.
What Is A Stock Market Crash?
To make the stock market crash simple, let’s decode. A stock market crash is a rapid and sharp fall on Dalal Street. There is a fall in the stock prices across a broad section of the market, sometimes all the sectors are in red. The market movement purely relies on the sentiments of the investors. And the sentiments of the investors are directly affected by the economic concerns, weak corporate earnings, rising interest rates, geopolitical tensions or investor panic.
When investors sell stocks heavily, share prices decline, reducing the overall market capitalisation. This does not mean the same amount of physical cash has disappeared. The figure mainly reflects a decline in the market value of listed companies.
Why Is The Indian Stock Market Falling?
The stock market is facing pressure due to several factors, including heavy FII selling, rising US bond yields, higher crude oil prices and rupee depreciation. Together, these factors can weaken investor sentiment and increase volatility across the Sensex and Nifty.
| Factor | How It Impacts The Indian Stock Market |
| Foreign Investor Selling | Heavy selling by FIIs increases supply in the market and can push stock prices lower. |
| Rising US Bond Yields | Higher US Treasury yields can attract global funds away from emerging markets such as India. |
| Higher Crude Oil Prices | Rising oil prices can increase India’s import costs, fuel inflation and affect corporate profit margins. |
| Rupee Depreciation | A weaker rupee can increase import costs, particularly crude oil, and influence returns for foreign investors. |
Aishwarya Samant is a journalist with over 4 years of experience navigating the fast-paced corporate media landscape. She specializes in decoding business news, world economy, personal finance, and stock market trends, often adding a subtle touch of political perspective to keep things interesting.
Having worked with reputed organizations like ZEE, TV9, News24, and NewsX, she is no stranger to the newsroom hustle and the demands of real-time storytelling. Her writing style is fast-paced, engaging, and crafted to connect seamlessly with diverse audiences across platforms. She approaches every story from the reader’s point of view, breaking down complex topics into clear, relatable narratives backed by solid facts and credible sources. While she’s confident in expressing strong viewpoints, she ensures balance with insights. Sharp, fact-driven content that informs, engages, and keeps readers coming back for more.
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