Sensex, Nifty Nosedive as High Oil Prices, US Yields Spook Investors

Indian stock markets plunged on Thursday, with Sensex down over 1,247 points and Nifty 50 falling 1.64%. The sharp sell-off was triggered by rising US bond yields, high crude oil prices, and persistent geopolitical uncertainty.

NSE Building (File Photo-ANI)

Indian equity markets witnessed sharp selling pressure on Thursday as rising US bond yields, renewed strength in crude oil prices and persistent geopolitical uncertainty weighed heavily on investor sentiment. The Nifty 50 index closed at 23,063.10, down 383.70 points or 1.64 per cent, while the BSE Sensex ended at 73,580.54, lower by 1,247.71 points or 1.67 per cent.

The sell-off came as Brent crude surged back to around USD 106 per barrel, after declining to around USD 98 per barrel on Wednesday. At the same time, the US 10-year Treasury yield rose to around 5.11 per cent, increasing concerns over inflation, borrowing costs and the pace of global monetary easing.

Expert Analysis on Market Correction

Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital, said the market witnessed a sharp risk-off session, with selling intensifying across sectors, particularly financials. “Indian equities witnessed a sharp risk-off session as selling intensified across sectors, particularly financials. The correction reflects more than routine profit-booking: the rise in the US 10-year Treasury yield to around 5.11 per cent, crude oil remaining above $100 a barrel and persistent geopolitical uncertainty are collectively raising concerns around inflation, borrowing costs and the pace of global monetary easing,” Kasat said.

He said these factors are prompting investors to reduce risk, particularly in rate-sensitive segments. “Going forward, volatility could remain elevated until there is greater clarity on crude prices and global yields. A moderation in these pressures would be important for sentiment to stabilise,” he added.

Sectoral Performance

On the NSE, almost all sectoral indices closed in the red, with sharp declines seen in auto, metal and private banking stocks. The Nifty Auto index fell 1.46 per cent, while Nifty FMCG declined 1.18 per cent. Nifty IT lost 0.67 per cent, Nifty Media fell 0.75 per cent, and Nifty Metal declined 1.99 per cent. Nifty Pharma fell 0.46 per cent, while Nifty PSU Bank declined 1.21 per cent. Nifty Private Bank lost more than 2 per cent.

Asian Markets Overview

The weakness was also reflected in other Asian markets. Japan's Nikkei 225 was the only major index among those tracked to close higher, gaining 0.89 per cent to 65,600. Singapore's Straits Times declined 0.46 per cent to close at 5,683, while Hong Kong's Hang Seng fell 0.25 per cent to 24,772. Taiwan's Weighted Index closed at 48,024, down 0.28 per cent. South Korean markets were closed for a holiday.

Commodities Market

In commodities, gold prices declined 0.61 per cent to Rs 1,50,378 per 10 grams for 24 karats, while silver prices fell 1.23 per cent to Rs 2,33,067 per kg.

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