Dalal Street Slumps on Rising US Bond Yields, Crude Oil Spike and Irda Proposal
· Business · Economic Times
Indian equity indices came under heavy selling pressure on Thursday as rising US bond yields, elevated crude oil prices, weakness in the rupee and a sell-off in financials weighed on investor sentiment. The US 10-year Treasury yield moved above 5.10% and Brent crude remained above $102 a barrel, raising concerns over global liquidity, inflation and India's import bill. The Nifty 50 fell 383.70 points, or 1.64%, to close at 23,063.10, while the Sensex lost 1,247.71 points, or 1.67%, to end at 73,580.54. An Insurance Regulatory and Development Authority of India consultation paper proposed tighter limits on insurance commission distribution expenses and loan-linked insurance practices. The potential pressure on bancassurance fees triggered heavy selling across insurers, distribution platforms and exposed banks and nonbanking finance companies, pushing the Bank Nifty below 56,000. Selling was broad-based, particularly across financials and other rate-sensitive sectors.
Why it matters
Financial sector stocks, insurers, and rate-sensitive businesses face renewed pressure following the Irda commission proposals and broader macroeconomic headwinds.
Read the original report — Economic Times
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