Nifty50 and BSE Sensex Plunge 1.5% Amid US Yields 19-Year Highs

Stock market came under heavy selling pressure on Thursday. With Nifty50 and BSE Sensex declining nearly 1.5% as sharp rise in US yields added to investor concerns. Bajaj Finance emerged as biggest drag on Sensex, with shares plunging over 5%.

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%. Axis Bank and Bajaj Finserv also came under significant pressure, declining 3-4%.

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Shares of IndiGo, Kotak Mahindra Bank, Asian Paints, HDFC Bank and Trent were lower by 1-2%.

US Treasury Yields Jump to 19-Year Highs

US 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 2-year US Treasury yield briefly moved above 4.9%, marking its highest level since May 2024.

Oil Prices Rise Amid Iran-US Tensions

Oil prices have surged once more, breaching the $102 per barrel mark as crude oil futures rebounded from a mid-week dip below $99. The uptick coincides with ongoing tensions between Iran and the US. There, diplomatic efforts to bring an end to the conflict remain stalled.

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Rupee Falls Amid Global Market Volatility

The 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.

Market Outlook

According to V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, a strong recovery in equities is unlikely while these two global headwinds continue to persist. Growth-oriented stocks in mid- and small-cap segments have continued to attract buying interest despite their high valuations.