Indian markets plunge on US yield surge and Iran tensions
Indian stock indices crashed over 3%, wiping Rs 15 lakh crore in value, as rising US bond yields and spiking crude oil prices spooked investors amid
Indian equity indices suffered steep declines with the Nifty 50 and Sensex breaking key support levels amid widespread selling. The Nifty 50 index tumbled around 300 points and the BSE Sensex lost over 850 points. The Sensex nosedived by 3.2% or 2,495 points, while the Nifty 50 tumbled by 3.07% or 752.65 points. Both indices had crashed by 3% each at the time of writing. The Nifty 50 index crashed below the 22,500 support level and the BSE Sensex came below 71,800.
Global triggers intensify domestic pressure
The sell-off was driven by rising US Treasury yields, rebounding crude oil prices, and escalating US-Iran tensions following Donald Trump's remarks. Crude oil prices bounced back strongly from today's lows, spiking to over $115 per barrel. US bond yields surged, with the 10-year yield gaining over 0.75% and the 30-year yield climbing more than 0.70%. One report specified the US 10-year bond yield shot up 0.65% to 5.674.
Trump hinted at a fresh strike in Iran, stating the US could either deal with Iran or "completely blow them out." This geopolitical escalation, combined with the rebound in yields and skyrocketing crude oil prices, triggered the market fall.
Broad-based losses erase lakhs of crore in market value
Nearly Rs 15 lakh crore in investor wealth was wiped out in less than one hour. In the first few minutes of opening, Sensex and Nifty crashed over 3%, erasing Rs 15 lakh crore on the BSE. Trading was overwhelmingly negative: of 3,834 stocks traded on the BSE, 3,065 declined, 584 advanced, and 185 were unchanged.
Major indices and stocks faced severe losses. The table below details the worst-hit sectors and select major stock declines.
| Index / Stock | Performance |
|---|---|
| Nifty PSU Bank Index | Nearly 7% crash |
| Nifty Auto Index | Declined nearly 5% |
| Nifty Financial Services, Media, Metal Indices | Plunged 4% each |
| Nifty Midcap & Smallcap Indices | Nosedived 3% to 3.5% |
| Indigo (Sensex) | Over 7.3% decline |
| SBI | Nearly 6% plunge |
| Maruti Suzuki, Asian Paints, L&T, Tata Steel | Each nosedived nearly 5% |
| Axis Bank, ICICI Bank, M&M, Ultratech Cement, others | Plummeted 3% to 4% |
| Trent, Kotak Bank, Titan, HUL, others | Dropped 2% each |
| Tech Mahindra, Infosys, HCL Tech, Sun Pharma | Slipped 1% to 1.5% |
The Bank Nifty index lost more than 350 points. India's volatility index skyrocketed by nearly 22% and touched a new 52-week high of 24.49. The crash devastated individual company market capitalizations.
| Company | Market Cap Loss (Rs crore) |
|---|---|
| SBI | 65,075 |
| HDFC Bank | 39,707 |
| ICICI Bank | 32,173 |
| Larsen & Toubro | 23,392 |
| Maruti Suzuki | 19,981 |
Analyst warns of capital shift to bonds
Market experts caution that rising US yields could divert foreign investment from equities to fixed income, worsening equity pressure. SEBI-registered market expert Anuj Gupta warned, "The bounce back in the US Treasury yields is more dangerous, as it would trigger shifting of foreign money from the equities to bond market."
Avinash Gorakshkar, Founder of Avinash Mentor Research, also commented on the market dynamics. The views are those of individual analysts. Investors are advised to check with certified financial experts before investing.
