Stock Market Today: Over Rs 20 Lakh Crore Wiped Out In 30 Days — What Does A Market Crash Mean? Its Impact Explained

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

• 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.

• Rs 9 Lakh Crore Wiped Out: The sharp decline erased around Rs 9 lakh crore in market capitalisation within just a few hours.

• Heavy FII Selling: Foreign Institutional Investors (FIIs) continued their selling spree, putting additional pressure on Indian equities.

• Rs 10,000 Crore Sold: On September 30, FIIs sold Indian equities worth more than Rs 10,000 crore.

• 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.