Sensex fell 1.7%, a slide of 1,747 points to 73,581, its lowest in 90+ days. Nifty mirrored the dip, closing 1.6% lower at 23,063. Foreign funds dumped ₹5,027 crore of equity on BSE, while domestic investors added ₹4,301 crore, leaving the market capitalisation trimmed by ₹2.7 lakh crore to ₹482.3 lakh crore.
The pullback came on a backdrop of a 1.5% rise in global bond yields and a 10% jump in Crude, compounded by the US overnight session’s weak close. Financials, the most vulnerable to higher rates, led the decline, with Reliance Industries and Axis Bank among the biggest losers. 29 of 30 Sensex constituents slipped into the red, underscoring the breadth of the sell‑off.
Vinod Nair of Geojit Investments warned that risk‑aversion is tightening as rate‑trajectory concerns mount. He added, “In the absence of fresh positive triggers, near‑term sentiment may remain cautious, potentially limiting valuation expansion and making earnings growth likely the primary driver of market performance going forward.”
Looking ahead, traders will watch the June earnings cycle for big names and the RBI’s policy guidance. With no clear catalyst emerging, a cautious stance is expected, but robust earnings reports could tilt sentiment back to upside. The market’s next move will hinge on how quickly inflation data and global monetary policy signals crystallise.