Indian stock markets suffered a huge fall on Thursday. A combination of negative factors that hurt investor sentiment led to a tsunami of selling. As a result, the BSE Sensex fell by more than 1000 points. The Nifty also lost more than 1.5 percent. At 1:30 pm, the Sensex was trading at 71,605.71, down 1,032.99 points (1.42%). On the other hand, the Nifty 50 index continued to trade at 22,260.85, down 342.20 points (1.51%).

There are three main reasons for this huge fall. 
First.. the decision taken by the RBI. On Wednesday, the RBI increased the repo rate by 25 basis points to 5.50 percent. It also changed its monetary policy stance from 'neutral' to 'gradually tightening'. Market sources considered this as a sign that there may be more interest rate hikes in the future to control inflation. They started selling with concerns that this tough stance would affect the growth rate.

The second main reason is the increase in international crude oil prices. The price of Brent crude oil has increased by almost 4 percent and reached close to $ 104 per barrel. If crude oil prices increase, India's import bill will increase significantly. This will not only increase the pressure on the value of the rupee, but also lead to further increase in domestic inflation. This development has severely affected market sentiment.

The third reason is the continuous selling by foreign institutional investors (FIIs). FIIs, who had sold shares worth over Rs 43,395 crore in the last six trading sessions, sold equities worth a net Rs 6,121 crore on Wednesday alone. The markets came under severe pressure as the same trend continued on Thursday. Although domestic institutional investors (DIIs) provided some support with buying, it was not enough in the face of increased foreign selling.

In the wake of these developments, the rupee exchange rate also continued to weaken against the US dollar. Although IT stocks held up to some extent, there was widespread selling pressure across almost all sectors. Investors are acting cautiously amid these negative signals.