The SENSEX Index Closes 1.48% Lower

India’s BSE Sensex fell further to close about 1.7% down at 73,580.5 on Thursday, its lowest since June 8, as broad-based selling intensified. Investor sentiment was dampened by rising crude oil prices, higher US Treasury yields and expectations of another Fed rate hike, while geopolitical risks persisted. Iran’s defiant speech at the UN and signs of stalled diplomatic efforts to end the conflict raised concerns over further energy disruptions. Heavyweight financials were the hardest hit after the insurance regulator proposed changes to commissions and distribution payouts. The regulatory changes weighed on insurance distributors, banks and non-bank lenders with sizeable insurance distribution businesses. Bajaj Finance, Bajaf Finserv, Axis Bank, Kotak Mahindra Bank and HDFC Bank posted losses between 1.2% and 5.5%. Other top laggards included IndiGo (-2.8%), Trent (-2.8%), Mahindra & Mahindra (-2.3%), Reliance (-2.3%), Asian Paints (-2.2%), Bharti Airtel (-2.2%) and L&T (-2.1%).

The SENSEX Index fell 1108 points or 1.48 percent on Thursday to close at 73720 points. Leading the losses are Bajaj Finance (-5.87%), Bajaj Finserv (-4.33%) and Indusind Bank (-4.20%).

India’s BSE Sensex fell about 0.9% to 74,189 on Thursday, reversing the previous session’s gains as investors weighed rising crude oil prices, continued foreign selling, and financial sector regulatory changes. Crude oil prices climbed back above $100 a barrel, raising concerns over inflation and India’s import bill amid its dependence on oil imports. Financial stocks came under pressure after India’s insurance regulator proposed changes to commission rules, including caps based on product complexity and measures to spread life insurance commissions beyond the first year. Investors also focused on the market debut of the National Stock Exchange, India’s largest stock exchange, following a 225.6 billion rupees initial public offering that is expected to post a relatively modest 2%-3% gain on debut. Financials led the losses, with L&T Finance (-7.6%), Bajaj Finance (-4.7%), and Max Financial Services (-11.8%) among the notable laggards.