Indian stock market remained under pressure on Tuesday, September 29, led down by elevated crude oil prices and rising global bond yields. Both benchmark indices extended their losses for a second straight session, falling to their lowest levels in six months.
The Nifty 50 declined 0.42% to close at 22,683, remaining below the key 23,000 mark. The Sensex also fell 0.40% to end the session at 72,480. Weakness was also visible across the broader market, with the Nifty Midcap 100 and Nifty Smallcap 100 indices each declining more than 0.50%.
The Indian market is closely tracking developments on Wall Street as elevated US Treasury yields, oil prices and movements in technology stocks continue to influence global risk appetite. The latest moves in the US markets are particularly important for the Sensex, Nifty 50, Bank Nifty and Nifty IT, given their sensitivity to global liquidity, interest rates, the rupee and technology spending.
How did US markets performed on Tuesday?
US stocks closed marginally lower on Tuesday as Treasury yields continued to rise ahead of key inflation and labour-market data. Investors also assessed recent remarks from Federal Reserve officials for clues on the central bank’s future interest-rate trajectory.
The Dow Jones Industrial Average declined 131.59 points, or 0.26%, to end at 51,349.92. The S&P 500 slipped 12.85 points, or 0.17%, to 7,670.84, while the Nasdaq Composite edged down 22.84 points, or 0.08%, to 26,797.54.
Top three developments from US markets directly impacting Sensex, Nifty 50 and Bank Nifty –
1] US Treasury yields
The sharp rise in US Treasury yields is one of the biggest global-market headwinds for Indian equities. The 10-year US Treasury yield climbed to 5.278% on Tuesday, while the 30-year yield reached its highest level since June 2002.
2] AI stocks
The second major development is the continued strength of AI-related stocks. On Tuesday, gains in AI-linked technology shares helped offset the negative impact of rising Treasury yields on the broader US market. Optimism around Anthropic’s potential public debut supported technology stocks.
The company is aiming for a valuation of more than $2 trillion, a milestone that could potentially set a new benchmark for how Wall Street values leading AI companies.
Meta shares rose 3.3% despite OpenAI introducing its always-on AI agents, called dots, which can independently pursue users’ goals across multiple applications. The new offering is viewed as a rival to Meta’s recently launched Muse.
3] Crude oil prices
The third major development is the continued uncertainty around crude oil prices and its implications for US inflation and interest rates.
Although oil prices retreated on Tuesday, concerns remain that elevated energy prices could keep inflation high and force central banks to maintain tighter monetary policy for longer.
Brent crude for November delivery hovered around $103 a barrel after declining 2.6% in the previous session, while West Texas Intermediate (WTI) traded near $89 a barrel.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
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