Indian equities tumble as oil prices rise and global yields surge
India's Nifty and Sensex slid over 1.5% on Monday, hitting five-month lows amid higher Brent crude and climbing US and Japanese bond yields.
On Monday, India’s benchmark indices slumped, with the Nifty ending at 22,780.25 and the Sensex at 72,771.72, their biggest declines in five months. The NSE’s total market capitalisation slipped below $5 trillion, reflecting the impact of soaring Brent crude futures near $108 per barrel and US 10-year Treasury yields reaching levels not seen since June 2007. Indian 10-year government yields also climbed to a two-year high of 7.18%, adding to the sell-off.
Bank shares bore the brunt, as PSU banks fell 3.2% and private banks 1.5%, while large-cap stocks struggled with concerns over rising yields and sector-specific issues. Fund manager Christy Mathai cited global macro pressures, and Pankaj Pandey highlighted bank-specific challenges and succession worries at major institutions. The Nifty India VIX jumped 12.5% to 13.69, indicating heightened volatility, and the Nifty Private Bank index dropped 1.5%. Analysts see 22,200 as a key support level and 23,500 as near-term resistance.
Why it matters
The decline signals that higher oil prices and global bond yields are weighing on Indian markets, affecting investors and the broader economy.
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