Sensex Sinks 1,247 Points, Here's What Wiped ₹4.33 Lakh Crore Off Market Value?

Indian equities suffered a significant decline on Thursday, September 24, as global bond yields, rising crude prices, and a stronger dollar negatively impacted risk appetite. The benchmark Sensex fell by 1,247.71 points, or 1.67 percent, to 73,580.54 at 3:30 pm IST. The Nifty index also dropped by 383.70 points, or 1.64 percent, reaching 23,063.10 by 3:31 pm.

The Nifty breached the 23,100 mark, but surrendered its gains from earlier in the week after touching 23,489. Over 400 Nifty 500 constituents traded lower, leading to a combined market capitalization decline of approximately Rs 4.33 lakh crore. This represents a decrease in the quoted value, not an actual cash outflow.

The US 10-year Treasury yield increased to around 5.13 percent, while the 30-year yield hovered near 5.4 percent. Higher bond returns may cause investors to reevaluate equity valuations, particularly in emerging markets. A weaker Wall Street session on Wednesday further contributed to the pressure.

Oil prices also played a role in the market's downturn. Brent crude approached $106 a barrel after falling below $100 earlier in the week, posing a threat to India's import bill and margins for fuel-sensitive companies. IndiGo, HPCL, and BPCL all experienced declines of more than 2 percent.

Supply concerns continued amid US-Iran tensions, as Iranian President Masoud Pezeshkian stated during a United Nations meeting that Tehran would not yield to US pressure. Disagreements over talks remained unresolved.

The dollar index moved above 101, reaching a two-month high, which could exacerbate rupee pressure and the cost of dollar-denominated oil. Some metal shares even dropped up to 3 percent. Financials, particularly, deepened the market's decline. Investors assessed an IRDAI consultation paper on insurance distribution for its potential impact on commissions and growth; PB Fintech and Turtlemint both suffered sharp declines.

The Nifty Bank shed over 1,000 points, with Axis Bank and IndusInd Bank falling by around 5 percent each. Monthly Sensex derivatives expiry and profit-taking also contributed to the market's volatility. Intraday lows of 23,046.15 and 73,563.92 further emphasized the breadth of persistent late-session selling.