Market meltdown: Nifty dips below 22,300 as broader indices bleed

Key benchmark indices extended their losses in afternoon trade, with sentiment remaining fragile amid weak global cues and caution following the Reserve Bank of India's (RBI) repo rate hike. Rising US Treasury yields and firm crude oil prices also continued to weigh on sentiment. Broader indices underperformed the frontline benchmarks, with selling pressure seen across sectors. In contrast, Nifty IT index traded higher.

At 13:17 IST, the S&P BSE Sensex declined 1,001.63 points, or 1.38%, to 71,637.07, while the Nifty 50 index fell 341.15 points, or 1.51%, to 22,261.90.

The broader market underperformed the frontline indices, with the Nifty MidCap 150 index declining 1.98% and the Nifty SmallCap 250 index falling 2.18%.

Market breadth remained weak. On the NSE, 611 shares advanced, while 2,880 shares declined and 108 shares were unchanged.

The NSE's India VIX, a gauge of the market's near-term volatility expectations, jumped 8.66% to 15.09.

Buzzing Segment:

The Nifty IT index rose 0.72% to 27,956.80, after declining 1.93% over the past three sessions.

Mphasis (up 1.83%), Tata Consultancy Services (up 1.06%), Coforge (up 0.89%), Infosys (up 0.70%) and Wipro (up 0.68%) were the top gainers among the index constituents. Tech Mahindra (up 0.60%), HCL Technologies (up 0.57%), LTM (up 0.51%) and Oracle Financial Services Software (up 0.12%) also advanced, while Persistent Systems declined 0.11%.

Stocks in Spotlight:

GM Breweries fell 4.9% after the company reported a 12.61% YoY and 4.11% QoQ increase in profit after tax to Rs 39.29 crore in Q2 FY27. Net sales increased 18.28% YoY and 6.98% QoQ to Rs 213.52 crore.

Global Cues:

Dow futures were down 311 points, signalling a weak opening for US stocks.

European and Asian shares came under pressure on Thursday as rising US Treasury yields, higher oil prices and expectations of further Federal Reserve rate hikes weighed on investor sentiment.

Oil prices rose amid renewed geopolitical tensions in the Middle East. Brent crude moved above $102 a barrel as concerns over disruptions to energy supplies and shipping routes increased. The rise in oil prices added to concerns over inflation and higher interest rates.

The release of minutes from the Federal Reserve's September meeting also weighed on sentiment. The minutes showed that all 19 policymakers supported the September rate hike, while most officials considered another rate increase likely to be appropriate by the end of the year. However, the minutes also showed differences among policymakers over the inflation outlook and the need for further rate increases.

US stocks ended lower on Wednesday as Treasury yields remained elevated. The Dow Jones Industrial Average declined 0.66%, while the S&P 500 and Nasdaq Composite both fell 0.22%.

In Europe, concerns over France's fiscal position added to market pressure. Bank of France Governor Emmanuel Moulin said the country's economic situation was serious, citing higher borrowing costs, a large budget deficit and political uncertainty over the 2027 budget. He said France did not currently need intervention from the European Central Bank and that the country needed to address its fiscal problems domestically.

Investors will now focus on the upcoming third-quarter earnings season, while Treasury yields, oil prices, geopolitical developments and expectations for further Fed rate hikes are likely to remain key drivers for global equity markets.

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