Sensex falls over 650 points: Factors behind today's market selloff
What's the story
The Indian stock market witnessed another downturn on Thursday, with the benchmark indices Sensex and Nifty both witnessing sharp declines. At around 11:00am, the Sensex had fallen by 657 points or nearly 0.9% to trade at 74,170. The broader Nifty index also fell sharply by 215 points to trade at 23,231. The fall was largely due to rising US Treasury yields and rising crude oil prices.
Market reaction
US Treasury yield hits highest level since 2007
The US benchmark Treasury yield hit its highest level since 2007, following data showing a surge in business activity. This has raised expectations of another rate hike by the Federal Reserve, affecting global markets.
The rise in crude oil prices amid renewed uncertainty over US-Iran diplomatic relations has further weighed on market sentiment.
Brent crude was trading around $102.5 a barrel on Thursday after gaining 4% in the previous session.