The Nifty 50 index fell 1.64% on September 24, marking its largest single-day drop since July 8. The decline was driven by a rise in U.S. bond yields to 5.166% and higher Brent crude prices. Foreign investors sold ₹5,027 crore of shares, and the volatility index spiked over 22%. Market focus is now on the 23,000 support level to see if the selling pressure stabilizes.
The Nifty 50 index declined 1.64% on September 24, marking its sharpest one-day fall since July 8. The drop was linked to broader global concerns, particularly higher interest rates in the United States and increased crude oil costs, which together created a difficult environment for Indian equities.
The U.S. 10-year bond yield rose to 5.166%. When U.S. yields increase, global investors often prefer to move capital into U.S. assets rather than emerging markets like India, which can lead to selling pressure. Simultaneously, Brent crude oil prices climbing above $105 a barrel raised worries about inflation and the rising cost of operations for many Indian companies.
Institutional selling intensified during the session. Foreign Institutional Investors (FIIs) net sold ₹5,027 crore worth of Indian shares. While Domestic Institutional Investors (DIIs) attempted to steady the market with net purchases of ₹4,301 crore, the overall selling pressure remained stronger throughout the trading day.
The India VIX, a gauge that measures expected market volatility, jumped 22.64% to 12.68. A higher VIX indicates that participants are bracing for more price swings in the near future. The Bank Nifty also experienced significant pressure, finishing 1.96% lower.
For investors, the 23,000 level is now a critical point to observe. Exchange data shows 1.17 crore contracts are held at this strike price, making it a primary support zone. If the index consistently trades below this level, it may indicate further downward pressure. On the upside, resistance is forming in the 23,200 to 23,300 range, where recent selling activity has limited the potential for a rally. The performance of the market in the coming days will likely depend on whether global bond yields and oil prices begin to stabilize, as these factors continue to dictate the current sentiment in the Indian stock market.