Rising bond yields weigh on equities; Nifty 50 falls for 6th day

Nifty posts its sixth straight loss as fading hopes of an end to the Iran war keep crude prices elevated and push global bond yields higher, hurting risk appetite.

Indian equity benchmarks ended lower on Tuesday. The Nifty posted its longest losing streak since September 2025 as fading hopes of an end to the war in Iran kept crude oil prices elevated and pushed global bond yields higher, weighing on investor appetite for riskier assets.

 

The benchmark Nifty posted its sixth consecutive losing session on Tuesday, ending at 24,155, a decline of 133 points or 0.6 per cent. The Sensex posted its third consecutive session of losses, ending at 77,236, a decline of 493 points or 0.6 per cent. The total market capitalisation of BSE-listed firms ended the session at ₹490.8 trillion, down ₹1.7 trillion.

 

 

Investor sentiment deteriorated after prospects for a peace agreement between the US and Iran weakened further. Iran threatened to shift to a “fully offensive” military posture after efforts to negotiate a permanent end to the conflict stalled, while US President Donald Trump ruled out extending a temporary ceasefire arrangement. The setback also dimmed hopes of a swift resumption of tanker traffic through the Strait of Hormuz, a key route for global energy supplies. Brent crude was trading at $89.80; Brent crude prices had risen by 10 per cent in the last seven sessions.

 

Higher oil prices are bad for India, a heavy net importer. Adding to the pressure, long-dated bond yields climbed to multi-decade highs. The 30-year US bond yield stood at 5.32 per cent, the highest level since June 12, 2007.

 

“Crude oil remained the primary drag on market sentiment, while rising US bond yields and weak global cues prolonged the risk-off trend in Indian equities. Investor anxiety increased as hopes for a West Asia resolution faded after the temporary US-Iran ceasefire expired, heightening concerns about renewed inflation. Elevated US yields further reduced the attractiveness of emerging markets, and information technology (IT) stocks led losses amid fears that persistently high interest rates could dampen global technology spending. Although domestic fundamentals continue to be supportive, sustained high crude prices and rising input costs could pressure recent earnings upgrades, prompting investors to remain cautious in the near term,” said Vinod Nair, head of research at Geojit Investments.

 

Going forward, investors will track geopolitical developments to gauge market trajectory.

 

Market breadth remained weak, with 2,426 stocks declining against 1,890 advancing. FPIs were net buyers of Indian equities worth ₹1,651 crore, while domestic institutions bought ₹2,579 crore.

 

“Going forward, the 24,030-24,000 zone is expected to act as a key support area for the Nifty. A decisive breakdown below the 24,000 mark could accelerate selling pressure and trigger a deeper correction towards the 23,850 level,” said Sudeep Shah, head of technical and derivatives research at SBI Securities.