# Stocks Plunge as RBI Tightens Policy

> RBI policy shifts trigger sharp stock market drop in India.
- Title: Stocks Plunge as RBI Tightens Policy · The Economic Times
- Summary: RBI policy shifts trigger sharp stock market drop in India. Indian equities crashed Thursday as Nifty hit 52-week low of 22,179 amid RBI rate hikes, FII…
- Keywords: nifty, sensex, rbi, fii, bond yields, stock market crash, q2 earnings, money, business, Stocks, Plunge, Tightens
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/stocks/news/ahead-of-market-10-things-that-will-decide-stock-market-action-on-thursday/articleshow/134794702.cms
- Author: Debaroti Adhikary
- Published: 2026-10-08T15:47:00+00:00
- Read time: 1 min
- Topics: nifty, sensex, rbi, fii, bond yields, stock market crash, q2 earnings, money, business
## Indian stock market crashes
Indian equities suffered brutal sell-off as hawkish RBI policy, FII outflows and rising yields dragged Nifty and Sensex sharply lower.
## Nifty hits 52-week low
Nifty sank to fresh 52-week low of 22,179 before recovering to close at 22,232.
## Sensex plunges 1,045 points
Sensex plunged more than 1,045 points to close at 71,593.
## Market capitalisation drops
Market wiped out more than rs 10 lakh crore from total capitalisation, taking it to rs 461 lakh crore.
## RBI policy tightening impacts
RBI policy tightening weighed on rate-sensitive sectors, resetting near-term valuation multiples.
## FII outflows and bond yields
Persistent FII outflows and harder bond yields amplified market headwinds.
## Crude oil prices rise
Brent crude futures jumped 4.2% to more than $104 a barrel.
## Treasury yields near peak
10-year treasury bond yield stood at 5.29%, close to highest mark since 2002.
## Global markets react
US stocks edged lower as oil prices and treasury yields stoked inflation worries.
## Q2 earnings season focus
Market shifts to Q2 earnings season for near-term direction.
## Key takeaway

Indian equities crashed Thursday as Nifty hit 52-week low of 22,179 amid RBI rate hikes, FII outflows, and rising bond yields.