# Stock Market Plunges as FII Outflows and Bond Yields Spook Investors

> Indian stock market crashes after FII outflows and bond yields hit multi-year highs.
- Title: Stock Market Plunges as FII Outflows and Bond Yields Spook…
- Summary: Indian stock market crashes after FII outflows and bond yields hit multi-year highs. Indian stock market dropped 571 points on Thursday as FII outflows and…
- Keywords: sensex, nifty, fii outflows, bond yields, crude oil prices, q2 earnings, rbi policy, geojit investments, vinod nair, market capitalisation, bse, nse
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/stocks/news/ahead-of-market-10-things-that-will-decide-stock-market-action-on-monday/articleshow/134673452.cms
- Author: Debaroti Adhikary
- Published: 2026-10-04T10:47:00+00:00
- Read time: 1 min
- Topics: sensex, nifty, fii outflows, bond yields, crude oil prices, q2 earnings, rbi policy, geojit investments, vinod nair, market capitalisation, bse, nse
## Market Plunges
The Indian stock market plunged sharply on Thursday, with Sensex hitting a fresh 52-week low and Nifty breaching key technical levels.
## Sensex and Nifty Drop
Sensex dropped around 571 points to close at 71,910, while Nifty 50 dropped nearly 199 points to end the session at 22,422.
## Market Capitalisation Falls
The selloff wiped off Rs 5 lakh crore from the total market capitalisation of all companies listed on BSE, dragging it down below Rs 467 lakh crore.
## External Factors Drive Sell-Off
The market sell-off has been driven largely by external factors, with bond yields reaching multi-year highs and crude oil prices remaining elevated.
## Q2 Earnings Concerns
Q2 earnings are expected to be softer than Q1, which benefited from the lagged impact of operating costs, which may not be as available this time.
## RBI Policy Next Week
Domestically, investors are also cautious ahead of Q2 results and the upcoming RBI policy next week.
## Geojit Investments View
Vinod Nair, Head of Research, Geojit Investments, said the RBI, which was more open-minded, last policy would consider a shift in its stance in response to global inflationary pressures and the need to support the INR.
## Market Resilience
Nevertheless, it is important to note that India's economy remains resilient and is well positioned to navigate these challenges.
## Investor Strategies
Long-term investors may stay invested and use market weakness to accumulate gradually, while short-term investors could adopt a wait-and-watch approach until stronger measures from international institutions & the govt help restore stability in global financial markets.
## Key takeaway

Indian stock market dropped 571 points on Thursday as FII outflows and bond yields surged, wiping Rs 5 lakh crore from market capitalisation.