Investors on Dalal Street had little to cheer about on Thursday as a wave of selling dragged Indian equities sharply lower. The Sensex plunged more than 1,200 points, while the Nifty 50 slipped below the 23,100 mark, as concerns over crude oil prices, rising global bond yields and fresh pressure on financial stocks weighed heavily on sentiment.
The BSE Sensex ended at 73,581.52, down 1,246.73 points, or 1.67%. The Nifty 50 fell 383.70 points, or 1.64%, to close at 23,063.10. The Nifty ended at its lowest level since April 7.
Selling was broad-based, with 47 of the 50 Nifty stocks ending in the red. The sharp fall also pushed the broader market lower, leaving investors facing one of the weakest sessions for Indian equities in recent months.
The market started under pressure and the selling intensified as the session progressed. The Sensex opened at 74,272.40 and slipped to an intraday low of around 73,582. The Nifty touched 23,046.15 during the day.
Financial stocks bore much of the damage. HDFC Life fell 6.16%, Bajaj Finance dropped 5.87% and Axis Bank declined 4.56%. Bajaj Finserv and InterGlobe Aviation were also among the major Nifty losers.
Insurance stocks came under particular pressure following proposed changes by the insurance regulator covering areas such as distribution costs, commissions, market conduct and digital practices. The developments triggered heavy selling across the insurance and financial-services space.
PB Fintech, the parent company of Policybazaar, was among the biggest casualties. Its shares plunged as much as 30% during the session, sharply reducing its market value. SBI Life, Max Financial Services and other insurance-related stocks also faced selling pressure.
The banking sector was not spared. The Nifty Bank index fell close to 2%, with private banks and financial services companies among the major drags on the market.
A few stocks managed to buck the broader trend. Cipla was the top Nifty 50 gainer, rising 1.16%. ONGC gained 0.89%, while NTPC edged up 0.18%. The gains, however, were too small to counter the widespread decline.
Global factors added to the pressure. Brent crude moved above $100 a barrel and later climbed further as uncertainty surrounding the US-Iran situation raised concerns about disruptions to global oil supplies.
Higher crude prices are a particular concern for India because the country depends heavily on imports to meet its energy requirements. A sustained rise in oil prices can increase import costs, put pressure on inflation and weigh on the rupee.
Bond markets also sent a cautious signal. The US 10-year Treasury yield rose to around 5.11%, while India’s benchmark 10-year government bond yield crossed 7.09% during the session. Higher US yields can make dollar assets more attractive and add pressure to emerging markets such as India.
The rupee also weakened against the dollar, falling 14 paise to around ₹95.87 in early trade.
Thursday’s market action also unfolded against the backdrop of the much-awaited listing of the National Stock Exchange. NSE made its debut on the stock market after its ₹22,569-crore initial public offering received strong investor demand.
The exchange had a muted start but later gained more than 5%, touching around ₹1,878. Its market capitalisation crossed ₹4.6 lakh crore during the session, putting it well ahead of listed rival BSE in market value.
The contrast was striking. While NSE began its journey as a listed company, the broader market was caught in a steep sell-off.
The India VIX, a measure of expected market volatility, also jumped during the session, reflecting growing nervousness among investors.