Sensex ends 1,248 points lower, Nifty below 23,100; PB Fintech down 34%

Benchmark indices ended sharply lower on as rising crude oil prices and concerns over new insurance commission rules hit investor sentiment. Financial stocks led the decline, while all 16 major Nifty sectoral indices closed in the red.

The Sensex closed at 73,580.54, down 1,247.71 points or 1.67%. The index had opened at 74,272.40. The Nifty 50 ended at 23,063.10, down 383.70 points or 1.64%, after opening at 23,221.80.

The broader market also faced heavy selling. The Nifty Midcap 50 fell 2.57%, while the Nifty Midcap 100 declined 2.25%. The Nifty Smallcap 100 dropped 1.53%. India VIX, a measure of market volatility, jumped 22.76% to 12.70.

FINANCIAL STOCKS LEAD THE FALL

Financial stocks were among the biggest drags on the market after the Insurance Regulatory and Development Authority of India (IRDAI) proposed changes to commission structures for insurance products.

"The insurance and banking sectors remained weak following concerns regarding regulatory reviews of commission structures and their implications for profitability," said Vinod Nair, Head of Research, Geojit Investments Limited.

The Nifty Financial Services 25/50 index fell 2.16%, while the Nifty Private Bank index declined 2.19%. The Nifty Financial Services Ex-Bank index plunged 4.35% and the Nifty MidSmall Financial Services index fell 4.37%.

PB Fintech was among the worst-hit stocks, plunging 36% in its biggest-ever single-session fall. Turtlemint Fintech also fell 20%.

Among Sensex stocks, Bajaj Finance was the biggest loser, falling 5.47%, followed by Axis Bank, which declined 4.67%. Bajaj Finserv fell 4.06%, while IndiGo, Trent, M&M, Reliance, Asian Paints and Bharti Airtel also fell sharply.

ALL 16 SECTORS END IN RED

The sell-off was broad-based, with every major sectoral index ending lower.

The Nifty Auto index fell 1.57%, Financial Services 25/50 declined 2.16%, FMCG fell 1.08%, IT declined 0.44%, Media dropped 0.80% and Metal fell 1.96%.

The Nifty Pharma index declined 0.45%, PSU Bank fell 1.13%, Private Bank dropped 2.19% and Realty declined 1.10%. Healthcare fell 0.66%, Consumer Durables declined 0.74% and Oil & Gas dropped 1.23%.

The relatively smaller decline in IT and pharma offered little relief as heavy selling in banks, NBFCs and other financial stocks pulled the broader market lower.

CRUDE OIL ADDS TO MARKET PRESSURE

Crude oil prices also added to concerns over inflation and interest rates. Brent crude was trading at around $105.10 a barrel, up 1.96%, while WTI crude rose 1.42% to $93.47.

Rising oil prices are a concern for India because higher crude prices can increase inflationary pressure and widen the country's import bill.

The increase in oil prices came amid continuing uncertainty around tensions involving Iran and the US. Iranian President Masoud Pezeshkian said at the United Nations General Assembly that Tehran would not surrender to US pressure, while diplomatic talks between the two countries showed limited progress, Reuters reported.

The National Stock Exchange made its stock-market debut on Thursday, with NSE shares opening at Rs 1,800, an 0.84% premium to the IPO issue price of Rs 1,785.

The stock later gained further ground and closed higher, making its listing one of the key market events of the day. However, the NSE debut could not offset the broader sell-off in equities.

Vinod Nair said that markets came under pressure amid rising bond yields and a rebound in crude oil prices, reflecting heightened global macroeconomic risks.

"Investor sentiment turned increasingly risk averse as concerns over the interest rate trajectory intensified, driven by lingering uncertainties around inflation and economic growth. In the absence of fresh positive triggers, near-term sentiment may remain cautious, potentially limiting valuation expansion and making earnings growth likely to become the primary driver of market performance going forward," he added.

Overall, Thursday's session reflected pressure from both global and domestic factors, with higher crude prices and bond yields adding to concerns over inflation and interest rates, while the proposed changes to insurance commission structures triggered a sharp sell-off in financial stocks.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)