Investors witnessed a freaky Tuesday with the benchmark Sensex collapsing nearly 931 points on a sell-off that accelerated in the last hour of trade.

The sharp loss in equity values, spread across sectors, came amid lacklustre earnings from corporate India and continued selling by foreign portfolio investors (FPIs) who are seeking alternative markets such as China where the valuations are comparatively cheaper and the country’s central bank is reducing interest rates to boost its economy.

While all the sectoral indices ended in the red, the small-cap and mid-cap universes were severely hit as investor wealth got eroded more than ₹9 trillion on the BSE. Market experts said the pain could last longer as expensive valuations were now adjusting to the disappointing results.

Extending losses to the second day, the BSE Sensex plummeted 930.55 points, or 1.15 per cent, to settle at 80220.72, its lowest closing since August 14.

During intra-day trades, the gauge tumbled 1001.74 points, or 1.23 per cent, to a low of 80149.53.

The broader Nifty of the NSE crashed 309 points, or 1.25 per cent, to 24472.10. Analysts warned if the Nifty falls below 24400, it could even test 24000.

The analysts said FPIs continue to be in a sell mode though the quantum has moderated. Provisional data from the stock exchanges showed them net sellers of ₹3,979 crore, while the domestic institutional investors remained buyers. They added poor corporate numbers are leading to participants selling their positions at the slightest opportunity.

Besides, investor apprehension about the US Federal Reserve opting for a smaller cut at its November meeting was another factor.

Yields on the benchmark 10-year US treasury were trading at 4.17 per cent on Tuesday after hitting 4.22 per cent. It closed at 4.18 per cent on Monday.

“Rising US bond yields amid expectation of a modest rate cut by the Fed led to weakness in global markets and outflow of funds from emerging markets such as India,” Siddhartha Khemka, head — research, wealth management, Motilal Oswal Financial Services, said.

“Following its peers, Indian equities too witnessed decline. Q2 earnings are also showing signs of moderation which dented the sentiments.

“Overall we expect pressure to continue in the market driven by result oriented action. However, investors can follow a buy on dip strategy to accumulate quality stocks,’’ Khemka said.

Barring ICICI Bank, all stocks in the Sensex pack ended with losses.

“The recent sharp rise in US bond yields signals diminished expectations for aggressive rate cuts by the US Fed, also affecting fund flows to emerging markets. In the short term, this bearish outlook may persist due to sluggish earnings growth trends,” Vinod Nair, head of research, Geojit Financial Services, said.