Sensex And Nifty Open In The Red, Rising Global Bond Yields Weigh On Indian Stocks

Mumbai: Indian equities plunged during the early trading session on Thursday, September 24, as escalating US bond yields and a stronger dollar dragged sentiment, even with crude oil prices declining. By 9:23 am, the Sensex had slipped 564 points, or 0.75%, to 74,263, while the Nifty fell 205 points, or 0.88%, to 23,240, according to IANS.

Financial stocks propelled the sell-off. The Nifty Midcap 100 saw a 0.95% decrease, and the Nifty Smallcap 100 dropped 0.66%. The pressure extended beyond the benchmark indices. All NSE sectoral indices were trading lower. The Nifty Financial Services 25/50 experienced the steepest 1.73% decline, followed by private banks, which dwindled 1.67%.

Conversely, IT and pharma stocks managed slight gains. The catalyst behind the market's descent was the US 10-year Treasury yield surging past the 5% threshold, dampening share demand. Additionally, a stronger dollar compounded the downside risk for emerging markets, including India. Brent crude oil's price edged near $97 a barrel after US data revealed an unexpected surge of 2.97 million barrels in oil inventories.

Although the lower oil prices provided some respite, they were insufficient to counterbalance apprehensions regarding borrowing costs and global uncertainty. The opening bell saw investors closely monitoring the unfolding US-Iran conflict and a meeting between US President Donald Trump and Chinese President Xi Jinping, in anticipation of potential trade and technology announcements.

Asian markets exhibited mixed performances. China’s Shanghai index declined 1.04%, Shenzhen slipped 1.88%, Japan’s Nikkei rose 1.33%, and South Korea’s Kospi advanced 0.9%. Wall Street had previously closed in the red, with the Nasdaq dropping 1.13%, the S&P 500 falling 0.75%, and the Dow Jones shedding 0.68%. The Nifty had closed the prior session at 23,446. Immediate support is anticipated at 23,000–23,150, with resistance at 23,450–23,500.