Indian Equities Decline as Crude Oil Rally and Rising Bond Yields Stir Inflation Fears

Indian equities dropped significantly during early trading on Wednesday, driven by surging crude oil prices and elevated bond yields that intensified worries about inflation and potential Federal Reserve interest rate increases.

Brent crude futures advanced to approximately $96 per barrel, marking the third consecutive session of gains and reaching their highest level in nearly six weeks amid escalating military conflicts between the U.S. and Iran.

Rising oil prices weighed on bond markets, pushing global yields to their highest point since 2008 and increasing the likelihood of a Federal Reserve rate hike later this month.

The benchmark BSE Sensex declined by 560 points, or 0.7 percent, to 76,382, while the NSE Nifty index fell 209 points, or 0.9 percent, to 23,845.

Among the prominent decliners, Hindustan Unilever, Infosys, Tech Mahindra, Mahindra & Mahindra, UltraTech Cement, Eternal, HDFC Bank, BEL, HCL Technologies, Bajaj Finance, Asian Paints, and Indigo fell between 1 and 3 percent.

Hero MotoCorp slumped 4.3 percent after August sales figures came in below expectations.

NMDC dropped 1.1 percent despite reporting higher iron ore output and sales in August.

Sical Logistics jumped 5 percent on bagging a Rs. 534.73 crore, five-year contract from Central Coalfields Limited.

Adani Green Energy gained 1.3 percent after operationalizing a 139 MW solar power project in Gujarat.

Source link