The Sensex and Nifty experienced significant declines on October 22 due to a broad-based sell-off driven by rising treasury yields and disappointing earnings reports.

Key sectors such as financials, oil & gas, and automobiles were particularly affected. Market volatility surged, with the India VIX, often referred to as the fear gauge, spiking over 4% to 14.3. This increase reflects heightened investor anxiety as a sharp rise in US bond yields dampens expectations for aggressive rate cuts by the US Federal Reserve, impacting fund flows to emerging markets like India.

Investor sentiment was further affected by underwhelming Q2 earnings, prompting a sell-off as market participants sought to protect remaining profits. The day saw higher trading volumes despite the downturn, indicating a rush to liquidate positions in response to the bearish market conditions.