Mumbai, Sep 30: Indian equity markets extended their decline for the third straight session on Wednesday as cautious global sentiment and a rebound in US bond yields weighed on investors, keeping the benchmark indices under pressure.
The Nifty 50 fell 95 points to close at 22,620, while the BSE Sensex declined 48 points to settle at 72,480. However, the Bank Nifty bucked the broader trend, rising 373 points to finish at 54,633, reflecting stronger buying interest in banking stocks.
Global Markets Set the Tone
The domestic market struggled to sustain its recovery as investors turned their attention to developments in the US bond market.
The US 10-year Treasury yield recovered after an earlier decline, following a period of selling pressure in government bonds. The movement in bond yields remained an important signal for equity investors as markets assessed the outlook for global interest rates and liquidity.
Changes in US Treasury yields can influence investor allocations across global markets, including emerging economies such as India.
Banking Stocks Offer Some Relief
Despite the weakness in the Sensex and Nifty, banking stocks remained relatively resilient during the session.
The sharp gain in the Bank Nifty provided some cushion to the broader market and showed that buying interest was still present in selected pockets. Investors continued to differentiate between sectors and individual stocks rather than adopting a uniform approach across the market.
Investors Keep Eye on Global Developments
Market participants are likely to remain focused on US bond yields, global interest-rate expectations and overseas market movements in the near term.
The three-day decline in the benchmark indices reflects the cautious mood currently prevailing in the market. At the same time, strength in banking stocks suggests that domestic investors continue to find opportunities in specific sectors despite broader volatility.
For Indian equities, the next phase of trading is likely to remain influenced by a combination of global cues, bond yields, foreign fund flows and domestic economic fundamentals.