The Sensex and Nifty50, two major Indian stock market indices, fell for the third straight session on September 30, 2026. This decline was driven by cautious investor sentiment amid rising bond yields in the United States and significant selling by foreign institutional investors (FIIs). Over the past three trading sessions, the market lost ₹11.55 lakh crore in value.
- Sensex ended 49 points lower at 72,480.
- Nifty50 fell 96 points to 22,620.
- FIIs sold shares worth ₹25,662 crore in September.
- US 10-year Treasury bond yield rose to 5.24%, highest since 2007.
- Market losses driven by declines in major companies like HDFC Bank and Infosys.
Why did the Sensex and Nifty50 fall for three days in a row?
The continuous fall in the Sensex and Nifty50 was mainly due to two factors. First, foreign institutional investors sold shares worth ₹25,662 crore in September, reversing the net buying of ₹49,831 crore seen in the previous two months. Second, the rise in US Treasury bond yields made US government bonds more attractive, leading investors to move funds away from emerging markets like India.
How did US bond yields affect the Indian stock market?
The 10-year US Treasury bond yield increased sharply to 5.24%, its highest level since 2007. Higher yields on US government bonds offer safer returns, encouraging global investors to shift their money from riskier emerging markets to the US. This shift caused selling pressure on Indian stocks, contributing to the decline in the Sensex and Nifty50.
Which companies contributed to the market decline?
Shares of several major companies dragged the indices lower. These included HDFC Bank, Bharti Airtel, Eternal, Sun Pharma, Titan, Infosys, and Bajaj Finance. Their losses weighed heavily on the overall market performance during the session.
What was the overall impact on investor wealth?
Data from the Bombay Stock Exchange (BSE) showed that investors' wealth decreased by ₹11.55 lakh crore over the three trading sessions ending September 30. This significant erosion reflects the cautious mood among investors amid global financial shifts.
Frequently Asked Questions
Q: What are foreign institutional investors (FIIs)?
A: FIIs are investment funds or entities from outside India that invest in Indian financial markets. Their buying and selling activities can significantly influence market trends.
Q: Why do rising US bond yields affect Indian markets?
A: Higher US bond yields offer safer and better returns, attracting global investors to move money out of emerging markets like India, which can lead to stock market declines.
Q: What is the Sensex?
A: The Sensex is a stock market index that tracks the performance of 30 large, well-established companies listed on the Bombay Stock Exchange.
Q: What is the Nifty50?
A: The Nifty50 is an index representing 50 major companies listed on the National Stock Exchange of India, reflecting the overall market performance.
