Indian stocks faced heavy selling pressure on Thursday, September 30, as global risks and foreign outflows hit Dalal Street. Sensex fell 570.59 points to 71,909.70, while Nifty dropped 205.40 points to 22,282.75. The selloff erased over Rs. 6 lakh crore from BSE-listed companies’ market value during the session. 

Persistent FII selling, rising US Treasury yields, crude prices and rupee weakness drove the decline across major sectors. The selloff came in New Delhi amid a wider risk-off mood across Indian equities, with autos and infrastructure stocks facing strong pressure. 

Sensex fell more than 1,000 points intraday, while Nifty slipped below 22,300 before recovering some losses. Foreign investors sold Rs. 10,148.41 crore in Indian equities on September 30, while domestic institutions bought Rs. 11,271.73 crore. 

Foreign investor selling was the biggest pressure point for the market. FII outflows accelerated during September after stronger buying in July and August. According to exchange data, September selling reached nearly Rs. 44,000 crore by September 30. 

Rising US bond yields added another layer of pressure on Indian stocks. The 10-year Treasury yield touched 5.31%, reaching its highest level since 2007. Higher yields can make US fixed-income assets more attractive compared with emerging-market equities. 

The rupee also remained under pressure against the US dollar during Thursday’s trading session. It slipped to around Rs. 95.99 per dollar as stronger Treasury yields supported the dollar. Currency weakness can raise import costs and inflation concerns. 

Crude oil added to the market worries as Brent prices moved close to USD 100 per barrel. India imports more than 85% of its crude requirements, making energy prices an important factor for inflation and corporate margins. 

Selling spread across several heavyweight stocks, with Maruti, Mahindra & Mahindra, Tata Steel and Adani Ports among major laggards. Infosys, HDFC Bank, Kotak Mahindra Bank and HCLTech gained during the session.

Technical pressure also intensified after Nifty broke below the 22,500 support level. Analysts cited by TOI and ET identified 22,300 as another important level for the index.

Hariselvan Radhakrishnan of HST Wealth said, “Foreign selling and elevated global borrowing costs continue to weigh on sentiment.” Markets remain cautious ahead of the extended trading break. 

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