Stock markets went for a spin on September 24 amid a spike in global bond yields, rising crude oil prices and growing bets on a US Federal Reserve rate hike.
Around 2:30 PM, the BSE Sensex crashed over 1,250 points, or 1.67 per cent, to 73,575, while the NSE Nifty 50 tumbled nearly 400 points, or 1.70 per cent, to around 23,050.
The sell-off spread across the broader market, with the Nifty Midcap 100 and Nifty Smallcap 100 declining over 2.20 per cent and 1.65 per cent, respectively. Nifty 500, which represents over 92 per cent of the free-float of NSE-lsited stocks, also fell over 1.50 per cent, indicating a broad-based sell-off.
India VIX, the market's fear gauge, spiked over 27 per cent to 13.17. The India VIX measures the market's expectation of volatility over the next 30 days, with a higher reading indicating greater uncertainty and expectations of sharper price swings.
All sectors came under pressure. Nifty Financial Services Ex Bank Index, which tracks the performance of financial services stocks other than banks, nosedived over 4 per cent, dragged by PB Fintech and Max Financial Services, which crashed over 32 per cent and 11.50 per cent, respectively. Financial and insurance stocks came under heavy selling pressure after the Insurance Regulatory and Development Authority of India (IRDAI) released a consultation paper that proposes tighter commissions, lower Expense of Management (EoM) limits and a ban on "dark patterns" on insurance websites.
The Nifty Private Bank and Nifty Financial Services indices fell over 2 per cent each, while the Nifty Bank and Nifty PSU Bank indices declined 1-2 per cent.
Following financial stocks, Nifty Metal tumbled 1.86 per cent, Nifty Auto fell 1.32 per cent, Nifty Oil & Gas plunged 1.38 per cent. Even the traditionally defensive FMCG sector slipped over 1 per cent.
Why Stock Market Crashed Today
Here's what's behind the stock market crash today:
1. Bond yields spike
A spike in global bond yields spooked stock market investors. The US 10-year Treasury yield steadied at 5.11 per cent in Asian trading after surging 15 basis points in the previous session, hitting its highest level since 2007. Meanwhile, Japanese government bond yields climbed 8 basis points to 3.06 per cent, their highest level since August 1996. Higher bond yields reduce the appeal of riskier assets, including emerging-market equities such as India.
2. Crude oil prices rise
Brent crude oil futures rose over 2.50 per cent to $105.50 a barrel, while US West Texas Intermediate (WTI) crude futures gained 1.70 per cent to $93.87.
