Mumbai, Sept. 24 -- Stock markets tumbled on Thursday with the benchmark index Sensex tanking nearly 1,248 points to settle at an over three-month low due to across-the-board selling, led by financials, metal, auto and oil shares amid a spike in crude oil prices and surging US bond yields.

The 30-share BSE Sensex tanked 1,247.71 points, or 1.67 per cent, to settle near the day's low levels at 73,580.54, the lowest closing level since June 8.

During the day, it plummeted 1,264.33 points, or 1.68 per cent, to 73,563.92.

The 50-share NSE Nifty dropped 383.70 points, or 1.64 per cent, to end at a more than five-month low of 23,063.10.

As many as 47 Nifty constituents ended lower and three advanced.

Analysts said markets were weighed down by heavy selling in financial shares such as Axis Bank, Bajaj Finance and HDFC Bank after insurance regulator IRDAI proposed changes to the insurance distribution framework, including lower Expenses of Management limits and tighter controls on commissions.

Global factors such as high US bond yields and a spike in crude oil prices also dented the market sentiment, they added.

Among Sensex shares, Bajaj Finance dropped the most by 5.47 per cent, Axis Bank declined 4.67 per cent, Bajaj Finserv 4.06 per cent, InterGlobe Aviation 2.78 per cent, Trent 2.75 per cent, and Mahindra & Mahindra 2.31 per cent. NTPC ended unchanged.

"On the sectoral front, banking and financials came under significant pressure after IRDAI proposed changes to the insurance distribution framework, including lower Expenses of Management limits and tighter controls on commissions. The proposals raised concerns about the earnings and distribution economics of insurers and other related financial intermediaries," Ajit Mishra, SVP - research, Religare Broking, said.

Brent crude, the global oil benchmark, jumped 2.36 per cent to $105.4 per barrel.

The BSE MidCap Select index tanked 3.12 per cent and SmallCap Select index was down 1.19 per cent.

All BSE sectoral indices ended lower. MidSmall Private Banks dropped 2.81 per cent, Housing Finance 2.56 per cent, Financial Services 2.33 per cent, Insurance 2.20 per cent, MidSmall Private Banks Quality Tilt 2.13 per cent, Bankex 1.88 per cent, Private Banks index 1.85 per cent, Top 10 Banks 1.74 per cent, Metal 1.65 per cent and Services 1.43 per cent.

A total of 2,884 stocks declined, while 1,473 advanced and 216 remained unchanged on the BSE.

"The domestic decline was amplified by the IRDAI consultation paper proposing tighter limits on insurance commissions, distribution expenses and loan-linked insurance practices. The potential pressure on bancassurance fees triggered heavy selling across insurers, distribution platforms and exposed banks and NBFCs, pushing Bank Nifty below 56,000 and extending the damage to the broader benchmarks," Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,617.45 crore on Wednesday, according to exchange data.

On Wednesday, the Sensex climbed 299.17 points, or 0.40 per cent, to settle at 74,828.25. The Nifty was up 117.80 points, or 0.50 per cent, to end at 23,446.80.

Published by HT Digital Content Services with permission from Millennium Post.