Sensex, Nifty Lose Early Gains As Crude Oil Prices, Global Bond Yields Weigh On Investor Sentiment

Indian equity markets lost early momentum on September 15, with the Sensex and Nifty slipping into negative territory as investors remained concerned about rising crude oil prices, geopolitical uncertainty and elevated global bond yields.

At 10:30 am, the Sensex was trading 46 points lower at 74,735, while the Nifty declined 32 points to 23,365. Market breadth remained weak, with 2,118 stocks declining against 1,438 advancing, while 211 shares were unchanged.

Crude oil concerns pressure Indian markets

Oil prices continued to remain elevated as investors tracked developments in the Middle East and the possibility of further disruptions to global energy supplies.

Iran-aligned Houthi forces launched fresh attacks on Saudi Arabia and strengthened their positions along Yemen’s western coast near the Red Sea, according to Yemeni officials. Gulf nations also delayed planned discussions with Iran, adding to concerns that tensions could escalate further.

Brent crude prices traded around $107 a barrel in Asian markets. Higher oil prices are considered negative for India, which is among the world’s largest crude oil importers, as they can increase import costs and intensify inflationary pressures.

Inflation and global yields add to market worries

Rising energy prices have also increased expectations of tighter monetary policy in the US. Investors are watching the Federal Reserve’s upcoming policy decision amid concerns that higher inflation could delay rate cuts.

India’s retail inflation also accelerated in August, with price pressures spreading beyond food and transport categories. The increase has strengthened expectations of possible policy action by the Reserve Bank of India.

Meanwhile, benchmark 10-year US Treasury yields crossed the 5% mark on Monday for the first time since October 2023. Analysts said the rise in bond yields could have wider implications for global markets and borrowing costs.

The combination of geopolitical risks, higher energy prices and rising yields kept investors cautious, limiting gains in Indian equities.