Indian Equities Plummet as Crude Prices Surge and Bond Yields Rise

The Indian equity benchmarks declined for a second consecutive session on September 8 due to weak investor sentiment fueled by surging crude prices and rising bond yields in the US. The SENSEX plummeted as much as 555 points, while NIFTY50 touched an intraday low of 23,623.

The losses were led by heavyweight stocks such as HDFC Bank, ICICI Bank, Reliance Industries, Axis Bank, Bharti Airtel, Kotak Mahindra Bank, and Larsen & Toubro. Brent crude surged 2.53% to reach an intraday high of $99.45 per barrel, exacerbating supply disruption concerns.

Rising bond yields in the US could trigger a flight of money from emerging markets like India to safer US government debt, analysts noted. Treasury yields moved higher as investors await key economic data releases this week, including wholesale inflation data.