On October 12, 2026, the Indian stock market experienced a significant downturn as the Sensex fell by more than 500 points and the Nifty50 index traded below 22,400. This decline was driven by a sell-off in fast-moving consumer goods (FMCG) and banking stocks, along with increased market volatility and foreign investment outflows.
- The Sensex dropped by 552.60 points to 71,919.73.
- The Nifty50 declined by 147.65 points to 22,372.80.
- India VIX, a measure of market volatility, surged 8.1% to 15.54.
- Foreign institutional investors sold shares worth ₹3,568.90 crore on Friday.
- Domestic institutional investors purchased equities worth ₹4,743.26 crore.
- RBI increased the daily Cash Reserve Ratio (CRR) requirement for banks to 99% from 90%.
- Stocks like Meesho, Poonawalla Fincorp, and DMart showed notable movements.
Why Did the Sensex and Nifty50 Fall on October 12, 2026?
The market decline was influenced by several factors. A persistent outflow of foreign investments put pressure on stock prices. Additionally, the Reserve Bank of India (RBI) announced an increase in the daily Cash Reserve Ratio (CRR) for banks to 99% from the previous 90%, effective October 16, 2026. This move aimed to contain liquidity in the banking system but led to a negative reaction in banking stocks.
Moreover, increased market volatility, as indicated by the India VIX rising to 15.54, contributed to investor caution. The sell-off was particularly strong in FMCG and banking sectors, which are major components of the indices.
Which Stocks Were Most Affected During the Market Fall?
Among the top losers were Tech Mahindra, ITC Ltd, Coal India, State Bank of India, and Bharti Airtel. These companies faced selling pressure amid the broader market decline.
On the other hand, some stocks gained despite the overall negative trend. Bajaj Auto, Dr. Reddy’s Pharmaceuticals, Bharat Electronics Ltd (BEL), BSE, and Mahindra & Mahindra (M&M) were among the top gainers, showing resilience in a volatile market.
What Were the Highlights for Key Companies on October 12, 2026?
Puravankara shares surged 3.2% to ₹213.90 after signing a Joint Development Agreement (JDA) for a 12.76-acre land parcel in Bengaluru, with an estimated Gross Development Value (GDV) of ₹2,500 crore. This development will add approximately 1.90 million square feet to its residential pipeline.
Meesho shares rose 5.48% following strong demand during its festive sale, with orders growing 75% year-on-year on the first day.
Poonawalla Fincorp stock advanced 8.2% after reporting a 22% quarter-on-quarter increase in standalone net profits to ₹374.85 crore for Q2 FY27 and improved asset quality.
DMart (Avenue Supermarts) shares declined 4.43% despite reporting an 8.5% year-on-year increase in consolidated net profit to ₹743.57 crore for Q2 FY27. The company’s revenue rose 17.8% to ₹19,644.01 crore, but operating margins contracted.
Canara HSBC Life Insurance shares initially rose 3.5% after reporting a 5.5% year-on-year net profit increase to ₹43.05 crore for Q2 FY27 and announcing plans to raise ₹287.50 crore through non-convertible debentures.
Emcure Pharmaceuticals gained 3.4% as its board approved the amalgamation of two wholly owned subsidiaries with the parent company, subject to regulatory approvals.
Anand Rathi Wealth shares rose 2.35% despite a 10.65% year-on-year fall in consolidated net profit to ₹88.26 crore for Q2 FY27. Revenue increased 15.7% to ₹343.99 crore, and an interim dividend of ₹4 per share was declared.
RK Fashion Accessories debuted on the NSE Emerge platform at ₹80 per share, a 2.44% discount from its IPO price of ₹82.
What Is the Impact of RBI’s Cash Reserve Ratio Increase?
The RBI’s decision to raise the daily CRR requirement to 99% means banks must hold a higher percentage of their reserves as cash with the central bank every day. This move is intended to tighten liquidity in the banking system and help control inflation and financial stability. However, it can reduce the funds available for banks to lend, which may slow economic activity and affect banking sector stocks negatively.
What Are the Government’s Plans for the Steel Industry?
The government released a draft National Steel Policy Vision 2047 aiming to increase crude steel production to 604 million tonnes, raise per capita consumption to 302 kg, and boost steel exports to 45 million tonnes. The policy also focuses on improving raw material security, reducing imports, and increasing the share of high-end steel products. This draft policy is under stakeholder consultation and aims to replace the current National Steel Policy 2017.
