Crude surge, insurance reforms trigger 1.7% market slide

Indian benchmark equity indices fell sharply on Thursday (September 24, 2026) declining 1.7% as a spike in global crude oil prices, weak international cues and concerns over proposed insurance sector reforms weighed on investor sentiment.

The Nifty 50 slipped 1.7% to 23,064 points, while the Sensex dropped 1.7% to 73,580 points compared with the previous close. The decline reflected broader risk aversion among investors amid renewed uncertainty over global geopolitical developments and rising bond yields.

Oil prices emerged as a key concern for markets, with Brent crude futures rising for the second consecutive session to $104.86 a barrel, gaining more than 5% since September 22. The sharp increase in crude prices raised concerns over inflationary pressures, corporate margins and India’s import bill, given the country’s dependence on overseas energy supplies.

Domestic equities also faced additional pressure from the insurance sector after the Insurance Regulatory and Development Authority of India (IRDAI), in its consultation paper ‘Recalibrating Economics of Insurance Distribution’, proposed changes, covering distribution structures, expenses, commissions, market conduct and transparency norms, triggered heavy selling in insurance-related stocks and intermediaries.

“PB Fintech (down 36%), TurtleMint (down 20%) and MFSL (down 10%) came under heavy selling pressure following IRDAI’s consultation paper, which proposed sweeping changes to distribution structures, expenses, commissions, market conduct and transparency,” said Nandish Shah, Deputy Vice-President, HDFC Securities.

Market participants said the combination of external and domestic factors could keep volatility elevated in the near term.

“Indian equities are likely to remain weak in the near term amid renewed uncertainty over a potential resolution of the US-Iran conflict, elevated crude prices and rising global bond yields,” said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.