Overview
- A sharp sell‑off on Thursday sent the BSE Sensex down about 1,247.7 points to 73,580.54 and the Nifty 50 down about 383.7 points to 23,063.10, prompting heavy foreign institutional investor sales.
- The rout was driven by a rapid rise in US long‑term yields to roughly 5.1–5.2% and Brent crude climbing above $100 per barrel, which together lifted inflation expectations and borrowing costs.
- Foreign investors sold an estimated Rs 5,027.36 crore of Indian equities on Thursday, amplifying the market decline and pressuring rate‑sensitive financial stocks.
- Markets staged a measured rebound on Friday as crude eased toward the mid‑$100s and reports of progress on a phased US–Iran de‑escalation improved sentiment, with the Sensex gaining about 315 points and the Nifty about 77 points at close.
- The outlook remains fragile because yields and oil are still elevated, market pricing now shows roughly a 66–71% chance of another Fed rate rise next month, and India’s large oil import bill means sustained crude strength would push domestic inflation higher and squeeze corporate margins.