Indian equities plunged to their lowest closing levels in months amid global shocks from rising US Treasury yields and escalating oil prices, triggering widespread sell-offs and domestic market concerns.
Global jitters over rising US borrowing costs and a renewed surge in oil prices triggered a broad sell-off across Indian equities on Thursday, pushing the BSE Sensex and Nifty 50 to their weakest closing levels in months. The Sensex dropped 1,248 points to 73,581, while the Nifty 50 fell 384 points to 23,063, its lowest close in 118 trading sessions and back at levels last seen on April 7. Broad weakness marked the session, with every major Nifty sector ending lower and smaller stocks suffering more heavily than large caps.
Market participants pointed to a combination of external shocks. According to Abakkus Mutual Fund chief executive Vaibhav Chugh, cited in the report, the slide was fuelled by US 10-year Treasury yields climbing to levels not seen in nearly two decades, alongside hawkish remarks from Federal Reserve officials that kept the prospect of further rate increases alive. That pressure was compounded by oil’s move higher, with Brent crude rising above the $102 to $106 a barrel range in the article and global inflation worries already building as energy prices feed through to transport, food and other costs. Reporting from Kiplinger has also shown that higher Treasury yields tend to lift long-term borrowing costs, including mortgages, car loans and credit cards.
The currency market reflected the same strain. The rupee weakened 22 paise to 95.96 against the dollar as geopolitical tensions helped push crude higher and lifted both Treasury yields and the greenback. Back home, some investors also sold insurance-related shares after the Insurance Regulatory and Development Authority of India issued a consultation paper proposing tighter caps on distribution payouts, adding another domestic drag to an already fragile market.
The broader backdrop remains one of unusually firm US yields and unstable energy markets. Kiplinger said the US 10-year Treasury yield had risen to 4.93 per cent by September 18, up sharply from the start of the year, while other market trackers showed it moving through the 4.85 to 4.97 per cent range earlier in September. Reuters-style market reporting has repeatedly linked that rise to inflation fears, higher oil prices and heavier government borrowing. At the same time, international coverage from Le Monde, Axios and AP has highlighted how conflict-related disruptions have kept crude and diesel prices elevated, reinforcing the sense among investors that the inflation story may not yet be over. Chugh said foreign portfolio flows could stay cautious while US yields remain attractive, adding that Indian valuations, though lower than their long-term averages, may still need further earnings support before overseas investors return in force.
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