Indian stock markets tumble amid rising oil prices and US bond yields

Indian equity markets experienced significant volatility and sharp sell-offs on Thursday, September 24, 2026. The BSE Sensex tumbled by over 1,200 points to settle near 73,580, while the NSE Nifty 50 dropped below 23,100, marking a five-month low.

Several macroeconomic factors drove the downturn. A surge in US 10-year Treasury yields, which reached levels not seen since 2007, heightened fears of sustained high interest rates. Additionally, rising crude oil prices, with Brent crude climbing back toward $106 per barrel due to geopolitical tensions involving Iran and the US, increased concerns regarding inflation and India's import bill.

Sector-specific pressures also contributed to the decline. The insurance and financial sectors were hit hard following a proposal from the insurance regulator, IRDAI, to cap commissions and change expense-of-management structures. This led to a massive drop in shares of PB Fintech (Policybazaar), which fell as much as 28%, and significant losses for major lenders like Axis Bank and Bajaj Finance. While some tech stocks saw minor gains, the broader market, including mid-cap and small-cap segments, faced widespread selling pressure.