Sensex hits 52-week low: Why India's market rout is deepening
What's the story
The Indian stock market is witnessing a major downturn, with the Sensex hitting a 52-week low of 71,293 on Thursday. This is lower than levels seen when crude prices had surged past $120 a barrel. The benchmark index has lost 6,590 points in the last eight weeks, erasing over ₹26 lakh crore from BSE's total market capitalization.
Market factors
Impact of rising bond yields on the market
The ongoing war between Iran and the US-Israel has led to a spike in oil prices since late February.
However, analysts believe that rising bond yields, which have reached their highest levels in over a decade, could be hurting the market more than high oil prices.
The 10-year Treasury yield hit its highest level since 2007 on Thursday at 5.31%, while the 30-year Treasury yield crossed 5.65%, its highest since 2002.
Market impact
Analysts' views on market pressure factors
Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, warned that rising bond yields directly increase the cost of capital, compress P/E multiples, and trigger persistent foreign capital outflows from emerging markets.
Ajit Mishra, SVP Research at Religare Broking, emphasized that the market is facing pressure not just from oil prices but also elevated bond yields, tight global liquidity, and geopolitical uncertainty.
Investor strategies
FII outflows and selective approach to correction
The market is also facing pressure from massive FII outflows. Foreign investors net sold Indian equities worth ₹10,148 crore in one session on Wednesday.
Mishra from Religare Broking advised a selective approach to the correction instead of aggressive market timing.
Khan from Angel One suggested a phased accumulation strategy focused on financially strong franchises with pricing power, low debt, and robust return ratios during this volatile environment.