Indian benchmark indices reversed sharply on Tuesday, September 15, after starting the session on a strong footing, with the Sensex losing more than 1,200 points from its intraday high and the Nifty slipping below the 23,300 mark.
As of 2:45 pm, Nifty was trading 0.98% lower at 23,168, and Sensex fell 0.82% lower to 74,169.
Nifty IT had gained as much as 5%, while HDFC Bank also rose after the lender nominated two candidates for the RBI's consideration for the CEO position.
Most sectors are trading in the red, with IT and FMCG bucking the trend. Defence stocks led the losses, falling over 5.3%, followed by Realty and Metal.
Three reasons why the market is falling:
Crude oil is back above $107
Brent crude was trading near $107 a barrel as concerns grew over a wider Middle East conflict and potential disruptions to energy supplies. New Houthi attacks on Saudi Arabia and uncertainty around regional diplomacy have added to supply concerns.
For India, a major crude importer, expensive oil raises the import bill and inflation risks while potentially complicating the interest-rate outlook.
US bond yields hit a key threshold
The US 10-year Treasury yield crossed 5% on Monday for the first time since October 2023. Higher US yields can make dollar assets more attractive, tighten global financial conditions and weigh on emerging-market equities.
The move has added to caution ahead of the Federal Reserve's policy decision this week.
Selling pressure meets a weak technical setup
The broader market remains under pressure, with financial, defence, realty and metal stocks among the key drags. India VIX also climbed about 6%, signalling rising near-term volatility.
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