Financial stocks lead correction as insurance overhaul plan sparks fears

Indian equities sold off sharply on Thursday, with Nifty and Sensex falling 1.6% and 1.7% respectively amid surging oil prices, near 20-year high US Treasury yields, and an IRDAI insurance overhaul that hit financial stocks. Financial services led the decline as the proposed cap on distributor commissions threatened bank revenues, with the Nifty Financial Services ex-Bank index tumbling 4.3% and insurance distributors PB Fintech and Turtlemint plunging 36% and 20%. Brent crude crossed $106 a barrel while the US 10-year yield hit 5.1%, the highest since July 2007, and India VIX jumped about 23% as volatility spiked.