Indian Benchmarks Plunge Over 1.6% on Thursday Amid Surging Crude, US Yields, and FII Outflows
Global headwinds from elevated crude oil and US Treasury yields, alongside persistent foreign institutional selling, weighed heavily on market sentiment.
The story
Indian equity benchmarks experienced a sharp downturn on Thursday, September 24, recording their most significant single-day decline since March 9. The Sensex dropped 1,247.71 points, or 1.67%, to settle at 73,580.54, while the Nifty 50 fell 383.70 points, or 1.64%, closing at 23,063.10.
The broad-based sell-off was attributed to several global factors, including Brent crude prices surging above $105 a barrel and the US 10-year Treasury yield nearing 5.2%. Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth ₹5,027.36 crore on Thursday, which intensified the selling pressure.
Domestic Institutional Investors (DIIs) provided some cushion by purchasing equities worth ₹4,301.18 crore. All 16 Nifty sectoral indices closed lower, with Nifty Midcap 50 declining 2.57% and Nifty Midcap 100 falling 2.25%.
The India VIX, a measure of market volatility, surged by 22.61% to 12.69, reflecting increased investor uncertainty. On Friday, September 25, markets opened largely flat to slightly lower amidst mixed global cues, with IT stocks acting as a drag while some financial and infrastructure stocks showed gains.
The tape
| Instrument | Last | Change |
|---|---|---|
| Nifty 50 | 23,063.10 | -383.70 (-1.64%) |
| Sensex | 73,580.54 | -1,247.71 (-1.67%) |
| Bank Nifty | 56,548 | +0.60% |
| USD/INR | 95.95 | +0.21 (+0.22%) |
| India 10Y Yield | 5.1% | Up |
| India VIX | 12.69 | +2.34 (+22.61%) |
Flows & data
FII Net (Cash)
Reading: ₹-5,027.36 crore (September 24, 2026)
Read: Foreign institutional investors were net sellers in the Indian equity cash market.
DII Net (Cash)
Reading: ₹+4,301.18 crore (September 24, 2026)
Read: Domestic institutional investors were net buyers, absorbing a portion of FII outflows.
IPOs & the primary market
The primary market saw continued activity this week. The Moneyview IPO, a ₹1,091.68-crore issue, opened for subscription on September 24 and was fully subscribed on its first day.
The public issue, with a price band of ₹32-₹34 per share, is set to close on September 28, with a grey market premium (GMP) signaling a potential 38.24% listing gain. Additionally, A-One Steels India's ₹405-crore IPO also opened on September 24 and will close on September 28.
Varmora Granito's ₹708-crore IPO, which had opened on September 22, closed for subscription on September 24. The National Stock Exchange (NSE) shares debuted on September 24, with a modest premium.
Valuation watch — India & global
India's Nifty 50 PE ratio stood at 19.50 as of September 24, 2026, which is about 11% below its five-year median of 21.98. This places the index in moderately undervalued territory on a historical basis.
Globally, elevated US 10-year Treasury yields, hovering near 5.2%, continue to act as a headwind for equities. Higher yields increase the attractiveness of fixed-income assets, prompting investors to reassess equity valuations and reduce risk. Persistent high crude oil prices also contribute to global inflationary concerns, further influencing market sentiment.
Monsoon watch
India's southwest monsoon is concluding with a nationwide rainfall deficit of around 14% as of September 7, marking one of the sharpest shortfalls in recent years. The India Meteorological Department (IMD) forecasts continued below-normal rainfall through the remainder of September. This persistent deficit has left kharif crops stressed across large parts of the country, with kharif sowing approximately 1.63% below the normal sown area of 110.4 million hectares as of September 4.
What we'll be watching
- Moneyview IPO subscription closes on September 28, 2026.
- A-One Steels India IPO subscription closes on September 28, 2026.
- ArMee Infotech IPO subscription closes on September 25, 2026.
- NSE shares are expected to debut on the Metropolitan Stock Exchange along with BSE on September 26, 2026.
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