Indian stock markets witnessed heavy selling on Thursday, with the Sensex falling more than 1,200 points and the Nifty declining around 375 points by afternoon. The sharp fall wiped out nearly ₹3 lakh crore from investors’ wealth within a few hours.
Weak global market signals, rising US Treasury yields and crude oil prices crossing $100 per barrel in international markets triggered selling pressure in domestic equities.
Sensex, Nifty fall sharply
The BSE Sensex opened at around 74,272 and fell more than 700 points within the first few minutes of trading. By 2 pm, it was trading at around 73,582, down 1.57%, or 1,246 points.
The NSE Nifty opened at around 23,221, compared with the previous close of 23,446. It later fell around 375 points to a low of 23,048.
NSE IPO lists amid market volatility
The NSE’s ₹22,561.57-crore IPO also made its market debut amid the volatility. The public issue was open for subscription from September 17 to 21.
However, uncertainty in the broader market had weighed on investor sentiment ahead of the listing, with the grey market premium reportedly falling to around 2%.
Key reasons behind the market fall
- Rise in global bond yields: Higher US Treasury yields put pressure on equity markets.
- Foreign investor selling: Continued selling by foreign institutional investors added to the pressure.
- Crude oil above $100: A sharp rise in international crude prices raised concerns over inflation and India’s import bill.
- Pressure on the rupee: Weakness in the rupee added to market concerns.
- Higher borrowing costs: Investors are also concerned that rising yields and inflation could keep borrowing costs elevated.