On Monday, October 12, the SENSEX fell as much as 0.86% to an intraday low of 71,848.10, while the NIFTY50 tumbled 0.75% to 22,352.35. At 1:20 PM, the S&P BSE SENSEX was down 552.60 points, or 0.76%, to 71,919.73, and the NSE NIFTY50 traded at 22,372.80, a decline of 147.65 points, or 0.66%. The sell‑off was driven by a persistent outflow of foreign investment, heightened volatility and the latest measures announced by the Reserve Bank of India.

Foreign institutional investors sold shares worth ₹3,568.90 crore on Friday, while domestic institutional investors purchased equities worth ₹4,743.26 crore on a net basis, according to exchange data. India VIX surged as much as 8.1% to an intraday high of 15.54. The top losers in the index included Tech Mahindra, ITC Ltd, Coal India, State Bank of India and Bharti Airtel. Among the top gainers were Bajaj Auto, Dr. Reddy’s Pharmaceuticals, Bharat Electronics Ltd, BSE and Mahindra & Mahindra.

Banking stocks fell after the RBI increased the daily cash reserve ratio (CRR) for institutional lenders to 99% effective from October 16, 2026, up from the current 90%. The RBI also announced ₹25,000 crore worth of bond issues. The higher CRR is aimed at containing liquidity in the banking system. The announcement added to the negative sentiment in the banking sector, contributing to the overall market decline.

Steel stocks traded mixed as the government released a draft National Steel Policy Vision 2047, targeting 604 million tonnes of crude steel production, 302 kg of per capita consumption and 45 MT of steel exports. The draft also seeks to increase raw‑material security, reduce imports and raise the share of high‑end steel. The current National Steel Policy 2017 aims for 300 MT capacity by 2030 and 160 kg per capita consumption, among other goals.

Puravankara shares surged 3.2% to an intraday high of ₹213.90 after signing a Joint Development Agreement for a 12.76‑acre land parcel in Sathanur, Bengaluru, with an estimated Gross Development Value of ₹2,500 crore. Avenue Supermarts, the parent of DMart, saw its shares decline 4.43% to an intraday low of ₹3,361.10 despite reporting an 8.5% year‑on‑year rise in consolidated net profit to ₹743.57 crore for Q2 FY27 and a 17.8% revenue jump to ₹19,644.01 crore.

Poonawalla Fincorp advanced 8.2% to ₹484 after reporting a 22% quarter‑on‑quarter rise in standalone net profit to ₹374.85 crore for Q2 FY27 and a 10% sequential revenue increase to ₹2,124 crore. Meesho shares climbed 5.48% to ₹245.50 following a 75% year‑on‑year surge in orders during the first day of its Mega Blockbuster Sale 2026. Canara HSBC Life Insurance Company rose 3.5% to ₹144.05 after reporting a 5.5% year‑on‑year net profit rise to ₹43.05 crore for Q2 FY27 and approving a ₹287.50 crore NCD issue. Emcure Pharmaceuticals gained 3.4% to ₹1,896.50 after approving the amalgamation of its subsidiaries. Anand Rathi Wealth rose 2.35% to ₹2,086.70 despite a 10.65% year‑on‑year fall in net profit, while Lenskart Solutions fell 5% to ₹643.75 amid reports of a potential block deal. RK Fashion Accessories debuted at ₹80 on the NSE SME platform, trading at a discount to its IPO issue price.