Stock market crash today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, tanked in trade on Thursday on weak global cues and a sharp rise in US yields.The stock market came under heavy selling pressure, with the Sensex and Nifty declining nearly 1.5% as a sharp rise in bond yields to 19-year highs added to investor concerns.At 2:15 PM, Nifty50 was trading at 23,076.55, down 370 points or 1.58%. BSE Sensex was at 73,673.50, down 1,155 points or 1.54%.Bajaj Finance emerged as the biggest drag on the Sensex, with its shares plunging more than 5%. Axis Bank and Bajaj Finserv also came under significant pressure, declining 3-4%. Shares of IndiGo, Kotak Mahindra Bank, Asian Paints, HDFC Bank and Trent were lower by 1-2%.The selloff was not limited to large-cap stocks. The Nifty Midcap 100 and Nifty Smallcap 100 indices each fell around 1%, reflecting weakness across the broader market, according to an ET report. Every sectoral index was trading in negative territory, with the Nifty Private Bank and Nifty Financial Services indices losing around 2% each.
Why is stock market down today?
Bond yields climbUS Treasury yields jumped sharply after data indicated that business activity in the US accelerated to its strongest level in more than five years in September. The rise in yields added to pressure on equities.The interest rate-sensitive 2-year US Treasury yield briefly moved above 4.9%, marking its highest level since May 2024. Meanwhile, the benchmark 10-year Treasury yield rose 13.89 basis points to 5.106%, its highest level since 2007 and its steepest single-day increase since April 2025.A sharp increase in bond yields can make debt-market investments more appealing to investors. This can, in turn, put pressure on equities as some investors shift towards fixed-income assets.Fed rate hike expectationsThe pressure on equities intensified as market expectations for a sharp increase in US interest rates strengthened. Traders in Fed funds futures are now assigning a 66% probability to a rate hike in October, compared with 53% earlier in the day. The shift came after data showed US business activity had climbed to its highest level in more than five years in September.Oil prices riseConcerns were further heightened by a renewed increase in oil prices, with crude moving back above $102 per barrel after slipping below $99 on Wednesday. The rise came amid continued differences between Iran and the US over efforts to end the war.Rupee fallsThe rupee also came under pressure in early trading, declining 14 paise to 95.87 against the US dollar. The fall came as oil prices and bond yields rose sharply.“The rupee continues to hover in the 95.60-95.95 zone, with persistent FII selling in Indian markets keeping sentiment cautious. Going ahead, US-Iran developments, Xi Jinping’s US visit and UN meeting updates could keep currency markets volatile,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
What’s the outlook?
The rise in Brent crude above $102 and the US 10-year Treasury yield climbing to 5.11% are likely to remain key pressures for the market, said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. According to him, a strong recovery in equities is unlikely while these two global headwinds continue to persist.Vijayakumar also pointed to the market’s recent preference for mid- and small-cap stocks. Growth-oriented stocks in these segments have continued to attract buying interest despite their high valuations, he said. While this trend is expected to eventually change, the timing of that shift will depend on how crude prices and bond yields move.“Today the market’s focus will be on the NSE listing. Therefore, everything else will be pushed to the background. If the NSE stock becomes available in today’s trade at a fair price, that would be a good opportunity for long-term investors to have a blue chip in their portfolio,” the analyst said.(Disclaimer: Recommendations and views on the stock market, or any other asset classes or personal finance management tips given by experts and analysts are their own. These opinions do not represent the views of The Times of India.)
