Sensex Crashes Over 1,200 Points, Erodes ₹4 Lakh Crore Market Cap; Nifty Hit 5 Month Low

Indian equity benchmarks ended sharply lower on Thursday, September 24, as a renewed rise in crude oil prices and global bond yields heightened concerns over inflation and interest rates. Weak global cues and heavy selling across financial stocks added to the pressure.

The newly listed National Stock Exchange also made a relatively subdued market debut, opening at a premium of around 0.8% over its issue price.

The Nifty 50 remained under selling pressure throughout the session. It opened lower at 23,221.80 and climbed to an intraday high of 23,281.95 before losses deepened during afternoon trade. The index touched a low of 23,046.15 before recovering marginally towards the closing bell.

At the end of the session, the Nifty 50 settled at 23,063.10, down 383.70 points or 1.64%. The Sensex dropped 1,247.71 points to 73,580.54, while the Bank Nifty declined 1.96%, underperforming the broader benchmarks.

BSE Market Capitalisation Falls by Over ₹4 Lakh Crore

The total market capitalisation of BSE-listed companies declined to ₹4,80,95,360.53 crore on Thursday from ₹4,85,01,353.86 crore in the previous session. This represents an erosion of around ₹4,05,993.33 crore, or 0.84%, in investor wealth in a single session.

US Treasury Yield Surges to Highest Level Since 2007

US Treasury yields climbed sharply on Thursday, adding to risk-off sentiment across global markets. The 10-year US Treasury yield rose to around 5.11%, its highest level since 2007, after increasing by roughly 15–16 basis points. Stronger US economic data and weak demand at a Treasury debt auction triggered fresh selling in bonds, while concerns that persistent inflation could prompt further Federal Reserve rate hikes also pushed yields higher. Elevated US yields generally reduce the relative attractiveness of risk assets and can increase pressure on emerging-market equities and currencies, including India.

Oil Prices Rise as US-Iran Talks Show Limited Progress

Crude oil prices climbed more than 2% on Thursday as uncertainty surrounding US-Iran diplomatic discussions continued to support the geopolitical risk premium.

Brent crude rose 2.25% to $105.40 a barrel, while WTI crude gained 1.93% to $93.94 a barrel. Concerns surrounding disruptions near the Strait of Hormuz remained in focus, while uncertainty over a potential US diesel export ban also supported prices.

Oil prices remained elevated despite US crude inventories increasing by around 3 million barrels during the previous week.
Higher crude prices are particularly significant for India, given the country's dependence on imported oil, as sustained increases can add to inflationary pressure and weigh on the rupee and corporate margins.

Rupee Slips to One-Week Low as Oil and Bond Yields Rise

The Indian rupee weakened to a one-week low on Thursday, closing at 95.9550 against the US dollar, down around 0.2%.
The currency remained under pressure as higher crude oil prices and rising global bond yields weighed on emerging-market currencies. Concerns that persistent inflation could encourage the US Federal Reserve to raise interest rates further also strengthened demand for the dollar.

However, dollar selling by state-run banks helped contain the fall, keeping the rupee above the psychologically important 96-per-dollar level.

Broader Markets Also Face Selling Pressure

Weakness extended beyond the frontline indices. The Nifty Midcap 100 declined 2.25%, reflecting strong selling pressure across mid-sized companies.

The Nifty Smallcap 100, however, declined 1.54%, outperforming the broader market despite weakness in benchmark indices.
Market breadth reflected widespread selling pressure. Out of 3,629 stocks traded on the NSE, 943 advanced, 2,587 declined and 99 remained unchanged.

A total of 93 stocks touched their 52-week highs, while 97 stocks hit 52-week lows.

Meanwhile, 148 stocks were locked in upper circuits, compared with 89 stocks in lower circuits.

All Major Sectoral Indices End in the Red

Sectoral performance remained weak, with all major indices ending the session in negative territory.

The Nifty Financial Services index fell 2.39%, recording its steepest intraday decline in around three months and slipping to nearly a four-month low.

Selling pressure was visible across several financial stocks, with Motilal Oswal Financial Services falling nearly 10% during the session.

Financial stocks were also affected by concerns surrounding the proposed insurance distribution framework, which brought companies with exposure to insurance commissions and distribution income into focus.

European Markets Trade Mixed as DAX and CAC 40 Slip

European equities were trading on a mixed note during the Indian market session.

Germany's DAX declined 0.38% to 25,330.02, while France's CAC 40 fell 0.33% to 8,096.41.

The UK's FTSE 100, however, remained in positive territory, gaining 0.15% to 10,720.92, showing relatively better resilience compared with its continental peers.

US Stock Futures Trade Lower; Nasdaq 100 Down Over 1%

US equity futures pointed towards a weak opening on Wall Street on Thursday.

Dow Jones futures slipped 0.36% to 51,687, while S&P 500 futures declined 0.60% to 7,725.50.

Technology stocks faced sharper pressure, with Nasdaq 100 futures falling 1.06% to 30,438.25.

The weakness in US futures came amid rising Treasury yields and renewed concerns that inflationary pressures could keep US interest rates elevated for longer.