Sensex Drops 135 Points, Nifty Nears 23,650 Amid Rising Bond Yields

Bajaj Finance led the losses on the Sensex, dropping nearly 2%, followed by declines in Infosys, Tech Mahindra, Hindustan Unilever, Bajaj Finserv, Bharti Airtel, and NTPC, which fell up to 1.6%. In contrast, IndiGo shares surged over 3%, leading the gainers, with Trent, Bharat Electronics, and Adani Ports also posting gains. The Nifty Smallcap 100 index outperformed the benchmarks, closing 0.6% higher, while the Nifty Midcap 100 index saw a marginal decline of 0.04%. Sectorally, Nifty Financial Services excluding banks dropped 0.6%, whereas Nifty Cement gained over 2%.

Bond yields resumed their upward trajectory after a temporary decline, with the yield on benchmark US 10-year notes rising 1 basis point to 4.578%. This movement followed a 9.4 basis point drop the previous day, influenced by a decline in the US dollar and a 6% drop in oil prices.

“Even though there were pressures on frontline indices, buying support from defensive stocks and other sectors ensured that losses were moderated. Investors also paid attention to external cues such as the U.S.-Iran issue and crude oil prices.”

Vikram Kasat, Head of Advisory at PL Capital

Foreign Institutional Investors (FIIs) continued to sell Indian equities, offloading shares worth Rs 1,597 crore on Wednesday. This marked the second consecutive session of net selling, following a three-session buying streak where FIIs purchased shares worth Rs 5,240 crore.

Oil prices saw a decline, with Brent crude futures dropping around 1% to trade near $104 per barrel, and WTI Crude falling over 0.5% to near $98 per barrel. This decrease came after US President Donald Trump indicated that negotiations with Iran were nearing completion, although he warned of further attacks if no peace deal was reached.