Mumbai, Sep 24: Indian stock markets came under heavy selling pressure on Thursday, with the Sensex falling more than 570 points and the Nifty slipping below 23,250 in early trade as a sharp rise in global bond yields and crude oil prices above $100 a barrel unsettled investors.
At around 9:30 a.m., the Sensex was down 576.59 points, or 0.77 per cent, at 74,251.66, while the Nifty declined 201.60 points, or 0.86 per cent, to 23,245.20.
The decline came after a positive session on Wednesday, when the Sensex gained 299.17 points to close at 74,828.25 and the Nifty advanced 117.80 points to settle at 23,446.80. The reversal reflects a change in global market cues, with rising bond yields and renewed oil-price pressure emerging as key concerns.
The biggest trigger for the sell-off was the sharp rise in US Treasury yields. The US 10-year Treasury yield climbed to around 5.14 per cent, reaching its highest level since 2007. Higher yields can increase the attractiveness of bonds relative to equities and raise concerns about borrowing costs and global capital flows.
Crude oil added to the pressure. Brent crude was trading around $102.5 a barrel after rising sharply in the previous session. For India, sustained high oil prices remain a concern because of their potential impact on the import bill, inflation and corporate costs.
Global equity markets also provided a weak backdrop. US stocks ended lower on Wednesday, with the Dow Jones Industrial Average falling about 0.7 per cent, the S&P 500 declining 0.75 per cent and the Nasdaq losing 1.13 per cent. Asian markets were mixed in early trade as investors assessed the impact of higher global yields and elevated energy prices.
Foreign and domestic institutional flows offered some support ahead of Thursday’s session. FIIs bought Indian equities worth about ₹1,617 crore on Wednesday, while domestic institutional investors purchased shares worth around ₹2,341 crore. However, foreign investors have remained net sellers over the broader September period, keeping overseas flows an important factor for market sentiment.
The market is also watching developments in the oil market and geopolitical situation closely, as any prolonged disruption could keep energy prices elevated. At the same time, investors are tracking expectations around US interest rates and the direction of global bond yields.
The sharp early decline highlights the sensitivity of Indian equities to global macroeconomic conditions. With crude remaining expensive and bond yields elevated, investors are likely to remain focused on global interest-rate signals, foreign fund flows and domestic economic indicators as trading progresses.