Even though the Nifty 50 slipped to its 52-week low in trade on October 8, the sell-off is not confined to India.
Global equity markets came under pressure on Thursday, with major indices across Asia, Europe and the US trading lower as a combination of rising oil prices, higher bond yields, renewed inflation fears and escalating Middle East tensions weighed on risk appetite.
The Nifty 50 fell 1.6%, but the weakness was broad-based across global markets. Japan's Nikkei and Hong Kong's Hang Seng declined 1.4% each, while China's CSI 300 fell 1.1%.
In Europe, Germany's DAX was down 1.1% and France's CAC 40 slipped 0.7%. US equities also remained under pressure, with the Dow Jones, S&P 500 and Nasdaq falling 0.4%, 0.4% and 0.5%, respectively.
The sell-off comes as investors grapple with rising concerns over inflation and interest rates. Global markets are increasingly pricing in the possibility that the US Federal Reserve could raise rates again before the end of the year, while a fresh round of inflation warnings from European Central Bank policymakers has added to uncertainty over the path of monetary policy.