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Sensex drops more than 900 points as Nifty falls toward 23,600

Investors reportedly lost about ₹6 lakh crore in market value as India tracked higher oil prices and a jump in US bond yields, which raised concerns about capital outflows.

Reported · Written up by our desk · Emerging Markets

India’s benchmark stock indexes fell sharply in morning trade on 24 July, with the Sensex dropping more than 900 points, or over 1%, to an intraday low of 75,474, while the Nifty 50 slid over 260 points, or more than 1%, to a low of 23,606, according to LiveMint Markets.

The selloff was broad based, with the Nifty Midcap 100 and Nifty Smallcap 100 indices declining up to 1.5% during the session. Overall, investors reportedly lost about ₹6 lakh crore as the total market capitalization of BSE listed firms fell to ₹471 lakh crore from nearly ₹477 lakh crore in the prior session.

LiveMint Markets linked the pressure partly to crude oil strength, citing Brent crude’s six day run of gains, with the Brent crude September contract touching $101 per barrel. The outlet said the oil rise has revived concerns about impacts on India’s inflation outlook, corporate earnings, and balance of payments.

The report also pointed to higher US yields as another headwind for global equities, with the US 10 year bond yield up to 4.711% after rising 6.5% so far this month. According to LiveMint Markets, investors typically rotate away from emerging market equities when US yields climb, and VK Vijayakumar, chief investment strategist at Geojit Investments, said the move in the US 10 year yield to around 4.7% is a near term risk for equity markets globally.

Latest closeWTI crude $92.23 ▲6.2%|Brent $100.54 ▲6.9%|Sensex 76,755.05 ▼0.9%

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