Just before the day's close on Thursday (24 September) the Indian equity market was witnessing a sharp and broad-based decline, with selling pressure intensifying during the afternoon session. The Nifty 50 had slipped below the 23,100 level, while the Sensex had fallen by more than 1,200 points from the previous close. At 2:15 PM, the Nifty was trading around 23,076.55, down approximately 1.58%, while the Sensex was around 73,673.50, lower by about 1.54%. The market therefore remained firmly under pressure heading into the final part of the trading session.
The weakness followed a positive session on Wednesday, when the Sensex had gained about 299 points and the Nifty had risen nearly 118 points. The reversal on Thursday reflected a combination of unfavourable global factors and renewed concerns within important domestic sectors. The market had opened lower and selling gradually widened as the session progressed, indicating that the decline was not merely an opening reaction but had developed into a broader risk-off move.
"One of the principal external factors affecting sentiment was the sharp rise in global bond yields. The US 10-year Treasury yield moved to around 5.1%, while the shorter-duration US Treasury yield also climbed significantly," said analyst reports from a couple of major brokerages on Thursday.
Higher US yields generally increase the attractiveness of dollar-denominated fixed-income assets and can put pressure on emerging-market equities. Investors were therefore reassessing equity valuations in light of tighter global financial conditions, these reports said.
Crude oil was another major source of concern. Brent crude had moved above the $100-per-barrel level and was reported around $102, raising concerns about India's import bill, inflation and corporate cost pressures. India remains heavily dependent on imported crude oil, so a sustained increase in oil prices can have implications for the trade deficit, the rupee, inflation expectations and the profitability of oil-sensitive companies. The combination of expensive crude and elevated global bond yields created a particularly difficult environment for Indian equities during Thursday's session.
Geopolitical developments also contributed to the cautious mood. Continuing uncertainty surrounding the US-Iran conflict and the potential implications for energy supplies kept investors defensive. The market was particularly sensitive to any development that could cause crude prices to remain elevated for an extended period.
Financial stocks were among the most significant sources of weakness. Bajaj Finance came under particularly heavy selling pressure, while Axis Bank and Bajaj Finserv also declined substantially. HDFC Life, SBI Life, Shriram Finance and other financial and insurance-related stocks were also affected. The weakness in financial stocks had a disproportionate effect on the benchmark indices because banks, non-bank financial companies and insurers have substantial representation in the major indices.
A domestic regulatory development added another layer of pressure to financial stocks. The insurance regulator's consultation proposals relating to distribution regulations and expense-of-management limits prompted investors to reassess the potential impact on insurance companies, distributors and financial institutions that earn income from insurance distribution. The proposals are intended to address distribution costs and encourage a more customer-focused insurance distribution structure, but investors were evaluating what the changes could mean for commissions, fee income and profitability across the affected businesses.
The weakness was not restricted to the largest companies. Mid-cap and small-cap indices were also trading lower, demonstrating that the selling had spread into the broader market. Market breadth was distinctly negative, with declining shares substantially outnumbering advancing shares. This indicated that the day's weakness was broad-based rather than being caused solely by a handful of heavyweight index constituents.
Sectoral performance was generally weak, with financial services and private banking among the more heavily affected areas. Several other sectors also remained under pressure as investors reduced risk exposure. At the same time, a limited number of individual stocks continued to attract buying interest on company-specific developments, demonstrating that the market was not experiencing indiscriminate selling in every security.
Thursday was also significant because of the listing of National Stock Exchange shares. NSE shares made their market debut following the large public offering, attracting considerable investor attention. The shares were trading above their issue price during the day, making the listing a notable event even though the broader market was declining. The strong interest in the NSE listing provided an individual point of strength within an otherwise weak market environment.
Volatility had also increased during the session. India VIX, which measures expected near-term market volatility, had risen noticeably by the afternoon. The increase in volatility reflected greater uncertainty among market participants and suggested that investors were becoming more cautious about taking aggressive positions while global yields, crude prices and geopolitical developments remained unsettled.
From a technical perspective, the Nifty's movement below the 23,100 area was significant because the index had previously found support around the 23,100–23,150 region. Breaking below this area increased short-term downside pressure and indicated that the recovery seen during the previous session had lost momentum. The market was consequently approaching the final hours of the session with a clearly weak intraday structure.
At 2:45 PM, the market was displaying a pronounced risk-off trend. The combination of rising crude oil prices, elevated US Treasury yields, geopolitical uncertainty, pressure on financial and insurance stocks, and weak market breadth had resulted in substantial losses for both benchmark indices. The immediate market focus remained on developments in crude oil, global bond yields, geopolitical tensions and the response of financial stocks to the proposed insurance-sector regulatory changes. The closing levels would be important in determining how much of the day's decline was retained by the market and whether the weakness extended into the following trading session.
Asian equity markets also today presented a mixed and cautious picture on Thursday, 24 September 2026, as investors weighed rising US Treasury yields, elevated crude oil prices and continuing geopolitical uncertainty. Japan's Nikkei 225 was among the stronger performers, gaining around 1.7%, supported by buying in technology and semiconductor stocks, particularly amid renewed interest in artificial-intelligence-related companies.
In contrast, Australia's S&P/ASX 200 declined by about 1.2%, while Hong Kong's Hang Seng Index and China's Shanghai Composite remained under pressure during the session. South Korean markets were closed for the Chuseok holiday. Overall, sentiment across the region remained subdued as investors monitored developments in global bond markets, crude oil prices and tensions in the Middle East. Market participants were also closely watching the anticipated meeting between US President Donald Trump and Chinese President Xi Jinping for indications on future US-China trade relations and broader economic cooperation.