Market Close Report Today: Nifty, Sensex Fall For Third Straight Session As Oil Tops $110

Mumbai, October 22: Indian equity benchmark indices extended their decline for a third consecutive session on Thursday, with the Nifty 50 closing below 22,700 as surging crude oil prices and escalating tensions in the Middle East heightened inflation concerns. Weakness in information technology, fast-moving consumer goods (FMCG) and energy stocks weighed on the benchmarks, while losses in midcap and smallcap shares reflected broad-based selling.

The Sensex fell 460.30 points, or 0.62%, to settle at 73,249.39, while the Nifty 50 declined 123.70 points, or 0.54%, to close at 22,687.65. Market breadth was negative, with 2,670 stocks declining, 1,323 advancing and 155 remaining unchanged.

Crude Oil Above $110 Heightens Inflation Concerns

Crude oil prices climbed to around $112 per barrel as the escalating conflict in the Middle East raised concerns over supply disruptions. Fresh attacks by Yemen’s Houthi rebels in Saudi Arabia prompted the United States to order some diplomats and their family members to leave its missions in the kingdom, adding to uncertainty across global markets. Asian equities also weakened amid concerns over a broader escalation of the conflict.

Higher oil prices pose a risk to India, which imports a substantialportion of its crude requirements. An extended rally in energy prices could increase inflationary pressures, widen the import bill and squeeze corporate profit margins, particularly in oil-consuming sectors.

The concerns come as members of the Reserve Bank of India’s rate-setting panel have indicated that further interest rate increases may be required to contain inflation. However, the minutes of the latest monetary policy meeting, released on Wednesday, also highlighted the risks of aggressive tightening to economic growth.

Market participants are also weighing the possibility that some of the recent weakness reflects profit-taking following the strong gains recorded in the previous week, rather than a deterioration in corporate earnings prospects.

IT, Energy and FMCG Stocks Lead Sectoral Losses

Thirteen of the 16 major sectoral indices ended lower, with information technology, energy and FMCG stocks among the worst performers. On the NSE, the auto, consumer durables, oil and gas, IT, energy and FMCG indices declined between 0.5% and 1.7%, while the Nifty Media index fell around 2.3%.

Among the Nifty 50 constituents, Nestle India led the losses, dropping 2.8%. Tata Motors Passenger Vehicles declined 2%, while Tech Mahindra and Reliance Industries were also among the major laggards.

Reliance Industries, one of the heaviest-weighted stocks on the benchmark, fell 2%, adding to the pressure on the frontline indices.

The broader markets also remained weak, with the Nifty Midcap and Nifty Smallcap indices losing around 1% each. The declines indicated that selling extended beyond large-cap stocks as investors remained cautious amid global uncertainty and rising energy costs.

On the other hand, Bajaj Finance, Cipla, State Bank of India, Bajaj Auto and ICICI Bank were among the Nifty 50 gainers, limiting the benchmarks’ losses.

Food Safety Notices Weigh on Select Consumer Stocks

Among individual stocks, Nestle India, Abbott India and Zydus Wellness declined after receiving notices from India’s food safety regulator over promotional claims and related concerns. Nestle India fell 2.8%, Abbott India dropped 1.3% and Zydus Wellness declined 3.4%.

Mahindra & Mahindra Financial Services fell 3.3% after brokerages flagged concerns over rising funding costs and potential risks arising from changes to insurance distribution rules.

Cybersecurity firm eMudhra plunged 20%, taking its two-session losses to 36%, after the Indian Computer Emergency Response Team issued an advisory stating that some of the company’s intermediate digital certificates had been compromised.

PC Jeweller, Vodafone Idea and Yes Bank in Focus

PC Jeweller shares reversed an early rally despite the jewellery retailer reporting a 58% year-on-year increase in net profit for the September quarter, with the stock falling 2.4%. Vodafone Idea extended its decline for a third consecutive session, falling 0.9% as investors assessed the competitive implications of Jio Platforms’ ongoing initial public offering.

Yes Bank also remained under pressure, falling 2.2% as investors evaluated the potential financial implications of the Supreme Court’s decision to overturn the lender’s 2020 write-off of Rs 8,400 crore in additional tier-1 bonds. The bank said it would have reported a loss of Rs 5,217 crore for the September quarter had it accounted for the ruling’s impact.

Tata Teleservices (Maharashtra), meanwhile, rose 18.6%, rebounding after two consecutive sessions of losses.

With crude oil prices elevated and geopolitical risks unresolved, investors are likely to track developments in the Middle East, inflation expectations, foreign fund flows and quarterly earnings for further direction. The market’s third consecutive decline underscores the pressure that rising energy costs and uncertainty over the interest-rate outlook are placing on investor sentiment.

Source:

• NSE
• BSE