New Delhi, Sept. 24 — Indian benchmark indices Nifty 50 and Sensex fell around 1% on Thursday, 24 September, as a sharp rise in crude oil prices and higher US bond yields weighed on investor sentiment.
Brent crude surged above $102 a barrel, raising concerns over inflation and India’s import bill, while the US 10-year Treasury yield climbed to 5.11%, adding pressure on global equity valuations.
Financial stocks were among the key drags on the Nifty 50. HDFC Life, Bajaj Finance, Axis Bank, SBI Life Insurance, Shriram Finance, and Bajaj Finserv were among the top losers.
Sentiment toward insurance stocks was further hit after the Insurance Regulatory and Development Authority of India (IRDAI) released a two-part consultation paper covering distribution regulations and Expense of Management (EoM) limits.
The proposed changes seek to curb high distributor payouts, lower costs for policyholders and shift the insurance industry away from an aggressive “push” sales model towards a more effort-based and customer-driven distribution framework.
Investors are assessing the potential impact of the proposed regulatory changes on insurers, distributors and their profitability, adding to the pressure on financial stocks during Thursday’s session.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the sharp rise in Brent crude above $102 a barrel and the US 10-year Treasury yield climbing to 5.11% are likely to remain key headwinds for Indian equities.
He said a sustained recovery in the broader market could remain difficult as long as crude prices and bond yields stay elevated.
Vijayakumar noted that mid- and small-cap stocks have continued to attract strong domestic liquidity, with investors accumulating growth-oriented stocks despite elevated valuations.
According to him, the strong flow of domestic liquidity into these segments has been a key factor behind their resilience, while large-cap stocks have remained relatively subdued despite more reasonable valuations.
He added that this trend could eventually reverse, with the timing largely dependent on the direction of crude oil prices and global bond yields.
(more to come)
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