Day after breather, benchmark indices fall on rising US 10-year yield

Indian equity benchmarks declined on Thursday as the 10-year US Treasury bond hit 4 per cent for the first time in four months, stoking fears that interests will stay higher for longer. The BSE Sensex declined 502 points, or 0.8 per cent, to end the session at 58,909 while the Nifty50 ended the session at 17,322, a decline of 129 points, or 0.7 per cent.

The US 10-year yield, a key indicator for global cost of capital, advanced 40 basis points (bps) in February, with markets repricing the peak US Federal Reserve (Fed) policy rate of 5.5 per cent to 6 per cent.

Higher-than-expected inflation data from Germany and France this week also led to bets of further interest rate