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Indian Markets Slide as Oil, Yields and Selling Rise
Indian stock markets fell sharply at the start of the week.
The Sensex lost more than 1,000 points, and the Nifty fell more than 300 points.
One reason is that oil has become more expensive.
Expensive oil can raise costs for India because India imports a lot of crude.
Investors are also worried because interest rates and bond yields in the United States are high.
Foreign investors have started selling Indian stocks again.
Smaller companies and many major sectors also saw their share prices fall.
Experts say the market could remain under pressure until oil prices and US bond yields cool down.
The Sensex fell more than 1,000 points, while the Nifty dropped over 300 points.
Brent crude rose to around $106 a barrel amid unresolved US-Iran tensions and Strait of Hormuz concerns.
The US 10-year Treasury yield climbed to approximately 5.2%, making emerging-market assets less attractive.
Foreign portfolio investors resumed selling Indian equities in September after buying in July and August.
Selling spread across midcaps, smallcaps and sectors including auto, financial services, metals, realty and FMCG.
- Who
- Indian equity investors, foreign portfolio investors and companies listed on Indian stock exchanges.
- What
- The Sensex and Nifty fell more than 1%, extending a broad market sell-off.
- Where
- Indian stock markets, including the Sensex, Nifty and broader midcap and smallcap segments.
- When
- At the start of the week, after both indices recorded their seventh consecutive weekly decline.
- Why
- Higher crude oil prices, elevated US bond yields, renewed foreign investor selling and geopolitical uncertainty pressured markets.
Key facts
- Sensex movement
- Down around 1.37%, falling more than 1,000 points below 72,100.
- Nifty movement
- Down more than 1.37%, or over 300 points, below 22,900.
- Brent crude
- Trading around $106 a barrel after rising 8% in one week.
- US 10-year Treasury yield
- Around 5.2%, described as a multi-decade high.
- Foreign investor activity
- Foreign portfolio investors resumed selling in September after buying in July and August.
- Broader market
- The BSE Midcap index fell 1.56%, while the Nifty Midcap 100 and Nifty Smallcap 100 declined 1.08% and 1.20%.
- Sector performance
- All Nifty sectoral indices were trading lower, with auto, financial services, metals, realty and FMCG down around 1%-2%.
Quotes
V K Vijayakumar
Chief Investment Strategist at Geojit Investments
“Two apparently contradictory trends – in the economy and markets- deserve attention. The economy is resilient and corporate earnings are improving, but the market is steadily going down. This is a case of external headwinds overpowering domestic tailwinds. Brent crude at $106 and the US 10-year yield at 5.2% are strong headwinds that are weighing on markets,”
financialexpress.com
“The valuation differential between large-caps on one side and mid-and small-caps on the other, will not last long. A reversion to mean is inevitable. This will happen only when crude and US bond yields cool,”
financialexpress.com
Sources
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