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Indian stocks fall as bond yields, crude oil and insurance rule jitters hit
The selloff erased nearly ₹5 lakh crore in investor wealth, with the BSE Sensex ending down 1.7% after IRDAI questioned bank-led insurance commission economics.
Indian markets slid sharply on Thursday as surging bond yields, higher crude oil prices, a weaker rupee, and expectations of higher US interest rates spurred investor selling, LiveMint Markets reported. The broad move was intensified by aggressive declines in banking, financial services, and insurance stocks following proposed changes to insurance commission rules.
The BSE Sensex fell 1,264 points, or 1.54%, to an intraday low of 73,563.92, before ending 1.67% lower at 73,580.54. The Nifty 50 dropped 369 points, or 1.57%, to an intraday low of 23,046.15, and finished down 1.6% at 23,063.10, according to LiveMint Markets.
LiveMint Markets said sector pressure was widespread, with pharma the only exception, while banking and financial services weighed most due to Insurance Regulatory and Development Authority of India, or IRDAI, questioning the economics of bank-led insurance distribution, particularly remuneration levels under multiple tie-ups. The selloff also took a toll on value across the exchange, with BSE total market capitalization falling to ₹480.99 lakh crore from ₹485 lakh crore in the prior session.
The outlet cited Brent crude climbing above $102 and the US 10-year yield rising to 5.11% as additional global headwinds. Among notable decliners, PB Fintech, or Policybazaar, plunged 28% to 30% intraday, and heavyweight financial names including HDFC Life, Bajaj Finance, Axis Bank, and Bajaj Finserv were among the largest losers, LiveMint Markets added.
Latest closeWTI crude $91.79 ▼3.0%|Brent $97.67 ▼1.6%|Sensex 74,858.99 ▲0.8%