Sensex Crashes 1,248 Points, Nifty Falls 1.64% Amid Global Cues

Indian equity markets ended sharply lower on Thursday, with the Sensex tumbling over 1,247 points and the Nifty slipping below 23,100, as rising US bond yields, higher crude oil prices and geopolitical uncertainty triggered widespread selling.

The BSE Sensex settled at 73,580.54, declining 1,247.71 points or 1.67 per cent. The Nifty 50 closed at 23,063.10, down 383.70 points or 1.64 per cent.

Investor sentiment remained under pressure as Brent crude prices climbed back to around USD 106 per barrel, recovering from approximately USD 98 per barrel on Wednesday.

Meanwhile, the US 10-year Treasury yield rose to around 5.11 per cent, fuelling concerns over inflation, borrowing costs and the pace of global monetary easing.

Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital, said markets witnessed a sharp risk-off session, with selling intensifying across sectors, particularly financial stocks.

“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 added that the combination of these factors was prompting investors to reduce exposure to risk, particularly in interest-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 indices end largely in the red

Selling pressure extended across nearly all sectoral indices on the NSE, with auto, metal and private banking stocks among the major laggards.

The Nifty Metal index recorded the steepest decline among the listed sectors, falling 1.99 per cent, while the Nifty Auto index dropped 1.46 per cent.

The Nifty FMCG index declined 1.18 per cent, while the Nifty IT and Nifty Media indices fell 0.67 per cent and 0.75 per cent, respectively.

The Nifty Pharma index slipped 0.46 per cent, while the Nifty PSU Bank index declined 1.21 per cent. The Nifty Private Bank index fell by more than 2 per cent.

Asian markets mostly decline

Weakness in Indian equities was reflected across several Asian markets, with most major indices ending Thursday's session lower.

Japan's Nikkei 225 bucked the trend, gaining 0.89 per cent to close at 65,600, emerging as the only major index among those tracked to finish in positive territory.

Singapore's Straits Times index declined 0.46 per cent to 5,683, while Hong Kong's Hang Seng fell 0.25 per cent to 24,772.

Taiwan's Weighted Index ended at 48,024, down 0.28 per cent. South Korean markets remained closed for a holiday.

Gold and silver prices decline

Precious metals also witnessed a decline, with both gold and silver prices ending lower.

Gold prices fell 0.61 per cent to Rs 1,50,378 per 10 grams for 24-karat gold, while silver prices declined 1.23 per cent to Rs 2,33,067 per kilogram.