Mumbai, Sep 24: Indian stock markets witnessed a sharp sell-off on Thursday as investors turned cautious amid rising US bond yields, higher crude oil prices and renewed concerns over global interest rates.
The Sensex and Nifty 50 came under heavy pressure, with both benchmark indices falling more than 1 per cent during the session. At around 2:15 PM, the Nifty 50 was trading at 23,076.55, down 370 points or 1.58 per cent, while the Sensex stood at 73,673.50, lower by 1,155 points or 1.54 per cent.
The decline was broad-based, with banking, financial and other heavyweight stocks facing significant selling. Bajaj Finance was among the biggest losers, falling more than 5 per cent, while Axis Bank and Bajaj Finserv also came under pressure. Mid-cap and small-cap stocks also declined, showing that selling had spread beyond the large-cap segment.
A key concern for investors was the sharp rise in US Treasury yields. The US 10-year yield moved to around 5.11 per cent, its highest level since 2007, after stronger US business activity data raised concerns that interest rates could remain higher for longer. Higher bond yields can also reduce the relative attractiveness of equities, particularly in emerging markets.
Crude oil added to the market pressure. Brent crude moved above $102 a barrel, raising concerns over India’s import bill and inflation. Higher oil prices can increase costs for businesses and put additional pressure on the country’s external balance.
Investor sentiment was also affected by expectations of further monetary tightening in the US. Strong economic activity has led markets to reassess the outlook for interest rates, keeping global equities under pressure.
Financial stocks faced additional selling following concerns around proposed changes in the insurance sector, while broader global weakness added to the cautious mood in domestic markets.
The rupee also remained under pressure as investors monitored crude prices, US yields and foreign fund flows. For Indian markets, the combination of expensive oil and elevated global borrowing costs remains an important near-term concern.
Thursday’s fall highlights how quickly global developments can influence domestic equities. Investors are now closely watching crude oil prices, US Treasury yields, global interest-rate expectations, geopolitical developments and foreign investment flows for signs of how market sentiment could evolve in the coming sessions.