Noida, Sep 24 (APAC Media): Indian benchmark equity indices fell sharply on Thursday, with the Sensex and Nifty declining more than 1.5% as investors turned cautious amid rising US bond yields, higher crude oil prices and renewed concerns over interest rates.
The Nifty 50 was trading at 23,076.55, down around 370 points, or 1.58%, while the BSE Sensex stood at 73,673.50, lower by nearly 1,155 points, or 1.54%, around 2:15 pm.
The sell-off was broad-based, with pressure visible across large-, mid- and small-cap stocks. Financial companies were among the major decliners, adding to the weakness in the benchmark indices.
Market sentiment was hit by a rise in US Treasury yields. The 10-year US Treasury yield climbed to 5.106%, its highest level since 2007, while the two-year yield briefly crossed 4.9%.
The increase came after data indicated that US business activity accelerated in September, raising concerns that stronger economic conditions could keep inflationary pressures elevated and limit the scope for monetary easing.
Expectations of another interest rate hike by the US Federal Reserve also weighed on investor sentiment. Market participants raised the probability of an October rate increase to 66%, compared with 53% earlier in the day, according to market data cited in reports.
Higher US yields can influence global capital flows by making dollar-denominated fixed-income assets relatively more attractive. For emerging markets such as India, this can add pressure to equities and the domestic currency.
Crude oil prices provided another source of concern. Brent crude moved above $102 a barrel amid continuing geopolitical tensions involving Iran and the United States. Higher oil prices are closely watched by Indian investors because India relies heavily on imports to meet its crude oil requirements.
Among individual stocks, Bajaj Finance declined more than 5%, while Axis Bank and Bajaj Finserv fell around 3-4%. Shares of several private-sector banks and financial-services companies also remained under pressure.
Insurance-related stocks faced additional selling after the Insurance Regulatory and Development Authority of India proposed changes affecting commission and distribution arrangements in the sector.
PB Fintech was among the stocks witnessing a sharp decline following the developments.
The Indian rupee also weakened during the session, adding to concerns around imported inflation and foreign fund flows.
Analysts said the day’s market decline reflected a combination of global macroeconomic pressures and domestic sector-specific developments. Investors are likely to monitor movements in US bond yields, crude oil prices, currency markets and upcoming economic data for further direction.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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