Sensex down 600 pts, Nifty below 23,250: Rising bond yields among key factors behind market decline

Fresh updates from the financial markets indicate that The equity key market indices The two key benchmark indices traded softer on Thursday as the benchmark Treasury yield advanced to its highest level since 2007. Additionally, crude prices rose above $100 a barrel in the previous session.

At 9:30 a.m., the Sensex was down 576.59 points or 0.77% at 74,251.66, while the broader Nifty declined to 23,245.20, down 201.60 points or 0.86 percent.

Key factors behind market slide

1) Rising Treasury yield: US business activity accelerated to its strongest level in more than five years in September, fuelled by a surge in new orders.

The data pushed the benchmark 10-year US Treasury yield to its highest level since 2007, while markets boosted their expectations for another interest-rate gain.

2) Climb in crude: A rebound in oil price marks additionally dented sentiment, fuelled by renewed uncertainty over US-Iran diplomatic. Brent crude hovered around $102.5 a barrel on Thursday after gaining 4% in the previous session.

Elevated crude prices are detrimental to the world's third-largest importer, India, as they add to the import bill, ​intensify inflationary fears and drag corporate profitability.

3) Weak global cues: US equities declined sharply on Wednesday after stronger-than-anticipated business activity reinforced expectations that the US Fed may need to tighten monetary policy further.

MSCI's gauge of Asian equities declined 0.4 percent, while Hong Kong's Hang Seng declined 0.5 percent and the Shanghai Composite eased 0.4 percent.