The Indian stock market witnessed a severe correction as heavy selling pressure dragged benchmark indices deep into the red. Investors lost massive wealth in just a single trading session as continuous selling dominated the market from the opening bell. Market experts suggest that global headwinds played a major role in triggering this sudden downward spiral.
Sensex and Nifty Plunge Deeply
At the closing bell, the 30-share BSE Sensex slumped by 1,247.71 points, or 1.67 percent, to settle at 73,580.54. Similarly, the broader NSE Nifty plummeted 383.70 points, or 1.64 percent, to finish at 23,063.10. Market breadth remained heavily skewed towards bears, with approximately 2,772 stocks declining while only 1,400 managed to register gains.
Major laggards included prominent corporate names such as Bajaj Finance, HDFC Life, Bajaj Finserv, Axis Bank, and InterGlobe Aviation. On the flip side, Cipla and NTPC were among the few counter-cyclical stocks that managed to close in positive territory, though they were far too weak to offset the broader market losses.
Broad-Based Sell-Off Across Sectors
The downturn was not restricted to any single segment; rather, all major sectoral indices ended the day with cuts. Nifty Private Bank emerged as one of the worst performers with a 2.2 percent drop, followed by Metal at 1.9 percent and Bank Nifty at 1.7 percent. Auto and Infrastructure sectors also shed around 1.5 percent each, while Oil & Gas declined by 1.3 percent.
Surging US Bond Yields and Crude Oil Prices
A primary catalyst for the domestic rout was the sharp spike in US Treasury yields. The US 10-year Treasury yield surged to its highest level since 2007, while the 2-year yield crossed 4.9 percent. Rising yields make fixed-income instruments more lucrative, prompting foreign institutional investors to pull capital out of emerging markets like India.
Additionally, crude oil prices climbed back above $102 per barrel amid escalating tensions between the US and Iran over the Strait of Hormuz. Higher energy prices reignited inflationary fears and stoked anxieties regarding India's import bills and macroeconomic stability.
