The Indian stock market is witnessing a bloodbath amid a broad-based sell-off. Key domestic equity indices--Sensex and Nifty-- plummeted over 1.7 per cent during the session. BSE 30 share index nosedived 1,230 points to a low of 71,406.79 as compared to the last close of 72,638.70. Nifty50 plunged over 413 points to a low of 22,190.  

At around 2:40 PM, BSE Sensex was trading at 71,587.36, down 1.45 per cent or 1,051.34 points. Nifty50 was quoted at 22,251.90, down 1.55 per cent or 351.15 points.

3 Factors That Dragged Stock Market Today

RBI's 'Calibrated Tightening' Stance

RBI on Wednesday changed its stance to 'Calibrated Tightening', meaning there will not be a rate cut in near future and, according to experts, it indicates a few hikes in repo rates going forward.

The monetary policy committee (MPC) of RBI raise the repo rate by 25 basis points to 5.50 amid inflammatory pressure.

"The calibrated tightening stance of the RBI has implications for markets. With two more rate hikes of 25bp each likely in this rate hiking cycle, there will be pressure on valuations rising from higher fixed income returns. Investor preferences also might shift marginally towards interest-inelastic segments like pharmaceuticals," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

2- Broad- Based Selling

The massive decline in today's session was also driven by massive selling in broader market with stocks from realty and banking and finance sector trading significantly lower.

"Weakness has been broad-based across sectors, although IT has provided a notable pocket of strength. The sector gained more than 1% in early trade, supported by buying in large-cap IT stocks ahead of Tata Consultancy Services’ September-quarter results. Realty, meanwhile, came under sharper pressure, falling more than 1% as higher borrowing costs and tighter financial conditions weighed on sentiment toward interest-rate-sensitive stocks," said Ponmudi R, CEO of Enrich Money.

3- Uptick In Crude Prices

Crude Oil prices rose around 2 per cent on MCX, recovering from the previous session’s losses amid reports of potential US strike options against Iran.

"Gulf of Mexico producers also shut down over 510,000 bpd due to Tropical Storm Isaias. Meanwhile, Middle East exports gradually recovered, though Strait of Hormuz tanker attacks remained a supply risk. Houthi attacks on Saudi Arabia triggered renewed coalition strikes in Yemen, keeping geopolitical risks elevated," said Pinky Yadav, Commodity Fundamental Analyst, Choice Broking.