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Indian Markets Tumble on Yield Surge, FII Woes
12 Oct
Summary
- Indian equity markets closed lower due to rising bond yields and FII outflows.
- Nifty dropped 0.70% to 22,363; Sensex fell 0.76% to 71,925.
- FMCG stocks led sectoral losses, while auto stocks saw gains.
Indian equity markets concluded Monday's trading session on a lower note, reversing earlier gains as investor sentiment soured. The primary drivers for this decline were escalating bond yields, with the 10-year yield reaching a three-year high, and ongoing outflows from foreign institutional investors amid global economic uncertainties.
The benchmark Nifty 50 index saw a decrease of 157 points, closing at 22,363. Similarly, the BSE Sensex recorded a loss of 548 points, settling at 71,925. Despite the weakness in the headline indices, the broader market demonstrated strength. The Nifty Smallcap 100 index surged by 1.42%, and the Nifty Midcap 100 index edged up by 0.08%, indicating positive momentum in smaller companies.
Sector-wise performance was mixed. The Fast-Moving Consumer Goods (FMCG) sector was the biggest laggard, with the Nifty FMCG index dropping by nearly 2%. The public sector bank index also experienced a decline. Conversely, the automotive sector bucked the trend, with the Nifty Auto index advancing by approximately 1%. Market breadth favored declining stocks, with more stocks trading in the red on the NSE than in the green.
