Indian equities come under heavy selling pressure as rising US Treasury yields trigger risk-off sentiment; financial stocks lead declines while NSE shares rebound after a modest listing

Indian benchmark indices came under significant selling pressure on Thursday, September 24, as a sharp rise in global bond yields weakened investor risk appetite and triggered broad-based declines across domestic equities.

The BSE Sensex fell nearly 700 points during morning trade, while the Nifty 50 moved close to the 23,200 mark. Broader markets also remained under pressure, with the Nifty MidCap 100 and Nifty SmallCap indices declining around 1.10% and 0.70%, respectively.

At 10:00 AM, the Sensex was down 686.33 points, or 0.92%, at 74,141.92, while the Nifty 50 declined 220.75 points, or 0.94%, to 23,225.35. Financial and private banking stocks were among the major laggards, while pharma emerged as the relatively stronger sector.

Why Are Indian Markets Falling Today?

The primary trigger for Thursday's selloff was a sharp increase in global bond yields.

The US 10-year Treasury yield jumped 15 basis points to 5.11% overnight, marking its biggest single-day increase since the US tariff announcement in 2025, according to Bloomberg data cited by Business Standard.

Stronger-than-expected economic data and hawkish comments from US Federal Reserve Governor Michael Barr increased market expectations of further monetary tightening.

Higher US bond yields can put pressure on equities because they raise the relative attractiveness of fixed-income assets while increasing the discount rate applied to future corporate earnings.

Emerging markets such as India can also face additional pressure when US yields rise sharply, as global investors reassess allocations towards riskier assets.

Global Markets Set a Weak Tone

The overnight performance of Wall Street added to the negative backdrop.

The Dow Jones Industrial Average declined 0.68%, while the S&P 500 fell 0.75%. The Nasdaq Composite dropped 1.13%.

Asian markets were mixed on Thursday. Japan's Nikkei 225 and South Korea's Kospi gained 1.47% and 0.9%, respectively, while China's CSI 300 and Hong Kong's Hang Seng declined 0.73% and 0.68%.

The mixed Asian trend did little to offset the pressure created by the sharp increase in US Treasury yields.

Financial Stocks Bear the Brunt

Financial stocks were among the weakest performers during early trade.

The Nifty Private Bank, Nifty Bank and Nifty Financial Services indices recorded some of the steepest declines in the sectoral space.

IndusInd Bank, Axis Bank and IDFC First Bank were among the major losers in the private-bank segment.

HDFC Life Insurance, Bajaj Finance and Bajaj Finserv were also among the biggest drags on the Nifty 50.

The weakness in financial stocks came alongside broader risk aversion, with investors reassessing the outlook for interest rates and funding costs.

Bajaj Twins Among Major Nifty Losers

Bajaj Finance and Bajaj Finserv came under particularly strong selling pressure in the morning session.

The weakness in large financial stocks had a disproportionate impact on the headline indices because of their significant representation in benchmark indices.

At the same time, technology and other rate-sensitive segments remained vulnerable to changes in global liquidity expectations.

Pharma Provides Some Support

Pharmaceutical stocks were the notable exception to the broader sectoral weakness.

Nifty Pharma remained the only major sectoral index in positive territory during the early session, offering some support amid the broad market selloff.

Defensive sectors can attract relative interest during periods when investors reduce exposure to cyclical and high-beta segments.

However, the performance of individual pharmaceutical companies remained mixed.

Broader Markets Also Under Pressure

The selloff was not restricted to large-cap stocks.

The Nifty MidCap 100 declined around 1.17% during early trade, while the BSE SmallCap 100 was down about 0.75%.

The movement indicates that risk aversion was spreading across market segments rather than being concentrated only in the largest companies.

Small- and mid-cap stocks can experience greater volatility during periods of liquidity tightening because of their relatively higher sensitivity to changes in investor risk appetite.

NSE Makes Much-Awaited Market Debut

Amid the broader market weakness, the long-awaited listing of National Stock Exchange of India (NSE) shares was a major market event.

NSE shares made their debut on the BSE at ₹1,800, representing a premium of 0.84% over the IPO price of ₹1,785.

The initial listing was considerably more modest than the strong demand seen during the IPO subscription period.

However, the stock subsequently gained momentum. At around 10:15 AM, NSE shares were reported to be up about 3.5% at ₹1,863.80 on the BSE.

NSE IPO Attracted Strong Institutional Demand

NSE's ₹22,569-crore IPO was subscribed 5.71 times during the three-day bidding period.

The issue received bids for around 50.58 crore shares against 8.86 crore shares on offer, generating demand of nearly ₹90,300 crore.

The QIB portion was subscribed 12.68 times, while the NII category was subscribed 6.55 times and the retail portion 1.39 times.

The issue was entirely an offer for sale, meaning NSE itself did not receive proceeds from the IPO.

NSE Listing Comes During a Volatile Session

The NSE debut assumes additional significance because the listing is taking place against a weak broader market backdrop.

The stock's initial 0.84% premium indicates that the strong subscription demand did not automatically translate into a sharp listing gain.

However, the subsequent rise of around 3.5% in early trading showed that buying interest emerged after the initial price discovery.

NSE's business remains closely linked to market activity, trading volumes and the continuing financialisation of household savings.

Crude Oil Remains Above $100

Commodity markets are another important factor for Indian equities.

Brent crude futures were trading above the $100-per-barrel level in Asian trade, although prices eased from the previous session.

September Brent futures were quoted around $102.57 a barrel, down 0.82% on the ICE exchange.

Elevated crude prices remain a concern for India because the country imports a large portion of its crude oil requirements. Higher oil prices can increase the import bill and put pressure on inflation, the rupee and corporate input costs.

Gold Holds Firm as Yields Rise

Gold futures remained broadly flat during early Asian trading, while silver futures declined around 0.79%.

The movement came as higher Treasury yields increased the opportunity cost of holding non-yielding assets.

For domestic investors, movements in gold, crude oil and the rupee remain important indicators because they can influence inflation expectations and portfolio flows.

IPO Activity Remains Strong

The primary market remains active despite the weakness in secondary markets.

Several IPOs are opening or continuing their subscription periods on Thursday.

Moneyview, A-One Steels, Green Asia Impex, Peshwa Wheat and Roopa Screen opened their IPOs, while Adroit Industries, Elevate Campuses, Swastika Infra and ArMee Infotech entered their second day of bidding.

Several SME issues also entered their second day, while Varmora Granito, Anand Seamless and Himalaya Nutravedics were scheduled to enter their final subscription day.

What Investors Should Watch

The immediate focus for equity markets will remain on US Treasury yields and expectations around the Federal Reserve's interest-rate path.

Any further increase in global bond yields could keep pressure on high-valuation equities and emerging-market assets.

Domestically, investors will also monitor the 23,200 level on the Nifty, developments in financial stocks, crude oil prices and foreign institutional flows.

The market's ability to stabilise after the initial selloff will be important in determining whether Thursday's decline develops into a broader correction or remains a short-term risk-off episode.

Market Outlook

Thursday's session has opened on a cautious note, with the Sensex falling nearly 700 points and the Nifty testing the 23,200 zone as investors reacted to a sharp rise in global bond yields.

The combination of higher US Treasury yields, expectations of tighter monetary policy, elevated crude prices and weakness in global equities has created a challenging near-term environment for risk assets.

Financial stocks are currently facing the strongest pressure, while pharma has shown relative resilience. Broader market indices are also declining, indicating that the selling is relatively widespread.

At the same time, NSE's much-awaited listing has added a major corporate event to the day's market action. The stock opened at ₹1,800, a modest 0.84% premium to its IPO price, before gaining around 3.5% in early trade.

For the broader market, the key variables remain global bond yields, crude oil prices, institutional flows and the Nifty's ability to defend the 23,200 region. With global markets still sensitive to monetary-policy expectations, volatility could remain elevated through the session.