The stock market crash today saw the Sensex plunge around 1,248 points and the Nifty 50 decline 384 points as rising US bond yields, higher rate-hike expectations, surging crude oil prices and rupee weakness triggered a broad-based sell-off. The Sensex closed at 73,581, while the Nifty ended at 23,063.

Broader markets also witnessed heavy selling pressure. The Nifty Midcap 100 fell more than 2%, while the Nifty Smallcap 100 declined 1.5%. The India VIX, a gauge of market volatility, surged more than 22%, reflecting heightened investor uncertainty. Market breadth turned sharply negative, with 2,587 stocks declining against 943 advances on the NSE.

Why Did the Stock Market Crash Today?

US Bond Yields Surge to Multi-Year High

A sharp rise in US Treasury yields emerged as one of the key triggers behind the market sell-off. The US 10-year Treasury yield climbed to 5.106%, its highest level since 2007, while the two-year yield briefly crossed 4.9%.

The increase followed data indicating that US business activity accelerated to its strongest level in more than five years in September. Higher bond yields can make fixed-income investments more attractive compared with equities, putting additional pressure on stock markets.

Fed Rate Hike Expectations Rise

Expectations of another US Federal Reserve rate hike also weighed on investor sentiment. Fed funds futures traders were pricing in a 66% probability of an October rate hike, up from 53% earlier in the day.

The shift in expectations followed stronger-than-expected US business activity data, increasing concerns that interest rates could remain higher for longer.

Crude Oil Prices Cross $102

Rising crude oil prices added to the pressure on Indian equities. Oil prices moved back above $102 per barrel after slipping below $99 a day earlier.

The movement came amid continued tensions between Iran and the US. Statements from Iranian and US officials regarding the conflict and the Strait of Hormuz added to concerns over the global oil supply outlook.

Rupee Falls to 95.96 Against US Dollar

The Indian rupee also weakened, briefly touching 95.96 against the US dollar, its lowest level since September 17. It later ended at 95.9550 per dollar.

According to LKP Securities VP Research Analyst Jateen Trivedi, persistent FII selling, along with developments involving the US, Iran, China and the UN, could keep currency markets volatile.

Financial Stocks Lead Market Decline

Financial stocks were among the biggest losers during Thursday's session. Bajaj Finance shares dropped more than 5%, while Axis Bank and Bajaj Finserv declined between 4% and 5%.

IndiGo and Trent fell nearly 3% each, while M&M, Reliance Industries, Asian Paints, Bharti Airtel and L&T declined more than 2%. The Nifty Financial Services index ended more than 4% lower, highlighting the intensity of selling across rate-sensitive sectors.

What Lies Ahead for Dalal Street?

Indian equities witnessed a broad risk-off session as selling intensified across sectors, particularly financial stocks. According to PL Capital Chief Business Officer of Advisory and Dealing Vikram Kasat, the correction reflected factors beyond routine profit booking.

Kasat pointed to the rise in the US 10-year Treasury yield to around 5.11%, crude oil prices above $100 a barrel and continuing geopolitical uncertainty as factors raising concerns over inflation, borrowing costs and the pace of global monetary easing.

He said these pressures were prompting investors to reduce risk, particularly in rate-sensitive segments. Stock Market volatility could remain elevated until there is greater clarity on crude oil prices and global bond yields.

Also Read: Weekly Stock Market Report: Sensex & Nifty Extend Loss for Sixth Week

Key Takeaways

• Sensex: Closed at 73,581, down around 1,248 points.

• Nifty 50: Ended at 23,063, down 384 points.

• Midcap stocks: Nifty Midcap 100 declined more than 2%.

• Smallcap stocks: Nifty Smallcap 100 fell 1.5%.

• India VIX: Rose more than 22%.

• Rupee: Ended at 95.9550 against the US dollar.

• US 10-year yield: Rose to 5.106%, its highest level since 2007.

• Crude oil: Climbed back above $102 per barrel.