Why Is Stock Market Down Today, September 24, 2026?
Indian stock markets came under heavy selling pressure on Thursday, September 24, with the benchmark indices Sensex and Nifty50 falling nearly 1.5% in afternoon trade. At 2:15 PM, the Nifty50 was trading at 23,076.55, down 370 points or 1.58%, while the BSE Sensex stood at 73,673.50, down 1,155 points or 1.54%.
Indian stock markets came under heavy selling pressure on Thursday, September 24, with the benchmark indices Sensex and Nifty50 falling nearly 1.5% in afternoon trade. At 2:15 PM, the Nifty50 was trading at 23,076.55, down 370 points or 1.58%, while the BSE Sensex stood at 73,673.50, down 1,155 points or 1.54%. The selloff came amid weak global cues, a sharp rise in US Treasury yields, higher crude oil prices and renewed expectations of a US Federal Reserve rate hike.
Why Is Stock Market Down Today?
The sharp rise in US bond yields was one of the key factors weighing on Indian equities. The US 2-year Treasury yield briefly crossed 4.9%, its highest level since May 2024, while the 10-year Treasury yield rose 13.89 basis points to 5.106%, its highest level since 2007. Higher bond yields can make fixed-income investments more attractive and increase pressure on equities. BSE Limited Stock Update: Share Price Dips Slightly Amidst NSE Listing.
Expectations of higher US interest rates also added to investor concerns. Traders in Fed funds futures were assigning a 66% probability of a rate hike in October, up from 53% earlier in the day, after data showed US business activity reached its strongest level in more than five years in September.
Oil Prices Rise
Crude oil prices also added to the pressure on Indian stocks. Oil moved back above $102 per barrel after falling below $99 on Wednesday. The rise came amid continued differences between Iran and the US over efforts to end the war. Higher crude prices can raise India's import costs and put additional pressure on inflation and the rupee. Reliance Industries Stock Update: Shares Dip Amidst Market Pressures.
Rupee Falls Against US Dollar
The Indian rupee also weakened in early trade, falling 14 paise to 95.87 against the US dollar. The decline came as higher oil prices and rising US bond yields weighed on the currency.
“The rupee continues to hover in the 95.60-95.95 zone, with persistent FII selling in Indian markets keeping sentiment cautious. Going ahead, US-Iran developments, Xi Jinping’s US visit and UN meeting updates could keep currency markets volatile,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
Banking And Financial Stocks Drag Markets
The selling was particularly visible in banking and financial stocks. Bajaj Finance was the biggest drag on the Sensex, with its shares plunging more than 5%. Axis Bank and Bajaj Finserv also declined 3-4%. IndiGo, Kotak Mahindra Bank, Asian Paints, HDFC Bank and Trent were among other stocks trading lower.
The weakness extended beyond large-cap stocks, with the Nifty Midcap 100 and Nifty Smallcap 100 indices each falling around 1%. All sectoral indices were trading in negative territory, while the Nifty Private Bank and Nifty Financial Services indices declined around 2% each.
What Is The Outlook For Sensex And Nifty?
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said Brent crude above $102 and the US 10-year Treasury yield around 5.11% are likely to remain key factors for the market. He said a strong recovery in equities could remain difficult while these global pressures persist.
Vijayakumar also noted that mid- and small-cap stocks have continued to attract buying interest despite elevated valuations. He said the eventual shift in this trend will depend on movements in crude oil prices and bond yields.
(The above story first appeared on LatestLY on Sep 24, 2026 03:09 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).