This month, India witnessed one of its biggest market milestones with the record-breaking IPO of Jio Platforms. The company raised $3.1 billion, and its shares surged 27% on the listing day, marking a major success for the Indian stock market.
However, while Jio’s market debut brought cheer to investors in India, the story across global financial markets was very different.
October turned out to be a particularly painful month for investors worldwide, with stock markets across several major economies witnessing a massive sell-off. By the end of the month, an estimated $7.12 trillion in market value had reportedly been wiped out globally, equivalent to approximately Rs 675 lakh crore.
The reported losses were so large that they came close to the combined annual economic output of two major Asian economies, Japan and India. Japan’s GDP is estimated at around $4.2 trillion, while India’s is around $3.7 trillion, according to the figures provided. Together, their economic output stands at approximately $7.9 trillion.
The global market losses, therefore, amounted to nearly 90% of the combined GDP of the two countries.
What started as a correction in technology stocks gradually spread to other sectors and markets, affecting investors in the US, China, India, South Korea, Indonesia and Europe.
Among the major markets, Greater China recorded the largest reported loss, with around $3.10 trillion wiped out from stock market valuations.
The decline affected exchanges in Shanghai, Shenzhen and Hong Kong. Several factors contributed to the pressure, including price wars among domestic companies and continued weakness in consumer prices.
Companies in the technology sector and industrial battery manufacturing also faced significant losses. Concerns over China’s economic conditions encouraged foreign institutional investors to withdraw money from Chinese equities, adding to the selling pressure.
The United States was another major contributor to the global decline, with technology stocks accounting for an estimated $2.15 trillion in lost market value.
The Nasdaq Composite closed October at 25,592.48. Investors became increasingly concerned about the amount of money major technology companies were spending on Artificial Intelligence (AI).
While companies have been investing heavily in AI infrastructure and development, investors are now looking for stronger revenue growth to justify these expenses. The concern is whether the massive investments will generate sufficient returns in the coming years.
Alphabet was among the biggest losers, with more than $500 billion reportedly wiped out from its market capitalisation. Amazon, Meta and Intel were also affected by the wider technology sell-off.
The broader American equity market reportedly lost around $1 trillion in a single trading session, reflecting the growing nervousness among investors.
India was also caught in the global market downturn, with the total market capitalisation of companies listed on the Bombay Stock Exchange (BSE) declining by approximately Rs 43.2 lakh crore during October.
In dollar terms, this amounts to nearly $520 billion in lost market value.
Heavy selling by Foreign Institutional Investors (FIIs) was one of the major factors behind the decline. When foreign investors withdraw large amounts of money from Indian equities, it can put pressure on stock prices and weaken overall market sentiment.
High global crude oil prices also added to investor concerns. Since India imports a significant portion of its crude oil requirements, rising oil prices can increase import costs and put pressure on the economy.
Higher US Treasury yields further affected investor confidence, making American government bonds more attractive compared with riskier investments in emerging markets such as India.
Meanwhile, concerns over corporate earnings, particularly among large IT exporters and consumer companies, added to the pressure.
The decline came in the same month that India witnessed the successful listing of Jio Platforms, showing how a major corporate market milestone can coincide with broader weakness across the stock market.
South Korea also experienced a sharp decline, with its stock market losing around $380 billion in October. The country’s benchmark KOSPI index entered bear market territory after falling 31% from its June peak.
A single-day decline of 3.2% brought the index to approximately 6,420 points. During one morning trading session, around 162.67 trillion Korean won, equivalent to nearly $108 billion, was reportedly wiped out.
A significant portion of the losses came from two major semiconductor companies, Samsung Electronics and SK Hynix, which together accounted for more than 60% of the decline.
Both companies are important players in the global semiconductor industry. However, growing uncertainty around technology stocks and selling by international investors put additional pressure on their shares.
The decline also highlighted how heavily some Asian stock markets are exposed to the global technology and semiconductor industries.
Indonesia’s financial markets also faced considerable pressure during October. The country’s IDX Composite index reportedly fell 14.91% in a single week, dropping to 5,185.10 points.
The decline wiped out approximately $110 billion, equivalent to around 1,720 trillion Indonesian rupiah, from Jakarta’s main stock market. One of the major reasons behind the sell-off was a proposal by global index provider MSCI to review Indonesia’s stock market classification.
The development created uncertainty among investors, particularly foreign institutions that track international market indices. At the same time, the Indonesian rupiah faced rapid depreciation, adding to concerns about the country’s financial stability.
More than 800 listed stocks reportedly ended in negative territory, while market-wide circuit breakers were triggered repeatedly as selling intensified.
The decline was not limited to Asian and American markets. European exchanges and other smaller global markets also witnessed significant losses.
Around $860 billion in market value was reportedly wiped out across Europe and other secondary markets. Higher US bond yields were among the factors affecting investor decisions. When returns on US government bonds rise, investors may shift money away from equities and other riskier assets.
Growing uncertainty across global financial markets also encouraged investors to reduce their exposure to stocks.
As a result, the October sell-off spread across different regions, affecting companies and investors beyond the technology sector.
According to the reported figures, the combined global market loss of $7.12 trillion was distributed across different regions.
Greater China and US technology stocks together accounted for $5.25 trillion of the reported losses, making them the biggest contributors to the global decline.
The scale of the October sell-off becomes easier to understand when compared with the annual economic output of different countries.
The reported $2.15 trillion loss in US technology stocks was comparable to Canada’s annual GDP of around $2.1 trillion. Similarly, the $3.10 trillion loss in Greater China was approximately equal to France’s GDP.
India’s reported market loss of $520 billion was comparable to Thailand’s GDP of around $501 billion. South Korea’s $380 billion loss was close to Denmark’s annual economic output of around $410 billion.
These comparisons highlight the enormous scale of wealth lost from stock market valuations in just one month.
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