The Indian stock market took another heavy hit on Thursday. The Sensex crashed more than 1,000 points by 2 pm, while the Nifty slipped below 22,300 as foreign investors continued to pull money out of Indian equities.

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 -- making the selloff sharp enough to wipe out around Rs 9 lakh crore in market capitalisation in a matter of hours.

The fall came as foreign institutional investors continued their selling streak. On September 30 alone, FIIs sold Indian equities worth more than Rs 10,000 crore, taking their selling over the previous two sessions to more than Rs 20,000 crore. 

Sensex Today: Why Is The Indian Stock Market Falling

One major trigger is the rise in US bond yields. The US 10-year Treasury yield climbed above 5.3 per cent, making US fixed-income assets more attractive for global investors. That can reduce the appeal of riskier emerging-market equities such as Indian stocks. 

The rupee is adding to the pressure. The Indian currency weakened beyond Rs 96 against the US dollar on Thursday. A weaker rupee can make dollar-based returns from Indian equities less attractive for foreign investors.

Oil is another concern. Supply disruptions following the conflict with Iran have increased uncertainty around energy prices. Higher crude prices are particularly important for India because the country imports a large part of its oil requirement.

Market volatility has also risen. India VIX, the market's volatility gauge, jumped as the selloff intensified. 

Source: ndtv