Stock markets drop sharply as crude oil prices spike and global trends turn weak

Benchmark indices fell sharply on Thursday, with the Sensex tumbling 1,247.71 points and the Nifty declining to 23,063. The drop followed a spike in crude oil prices and heavy selling in major companies like Reliance Industries and various bank stocks. Weak global trends also dampened investor sentiment throughout the session. The 30-share BSE Sensex dropped 1.67% to settle at 73,580.54, after plunging as much as 1,264.33 points earlier in the day. The 50-share NSE Nifty fell 383.70 points, or 1.64%, to end at 23,063.10. Out of thirty Sensex firms, twenty-nine ended lower. Bajaj Finance dropped 5.47%, Axis Bank declined 4.67%, Bajaj Finserv fell 4.06%, InterGlobe Aviation dropped 2.78%, Trent declined 2.75%, and Mahindra & Mahindra fell 2.31%. Brent crude jumped 2.36% to reach $105.4 per barrel. Ponmudi R., CEO of Enrich Money, noted that the selloff was driven by surging global bond yields and a sharp rebound in crude oil prices. The U.S. 10-year Treasury yield climbed to around 5.11%, while the 30-year yield touched its highest level since 2004. Vinod Nair, Head of Research at Geojit Investments Ltd, added that insurance and banking sectors remained weak over concerns regarding regulatory reviews of commission structures. Meanwhile, shares of the National Stock Exchange of India Ltd ended nearly 2% higher at ₹1,818 in their debut trade, backed by a ₹22,569-crore initial public offering that received nearly six times subscription.