Market Close Report Today: Sensex, Nifty Decline For Fourth Day As Oil Continues Climb

Mumbai, October 23: Indian equity benchmark indices ended lower for a fourth consecutive session on Friday, snapping their two-week winning streak as selling pressure across sectors and losses in broader markets weighed on sentiment. The Sensex fell 125.56 points, or 0.17%, to close at 73,123.83, while the Nifty 50 declined 87.65 points, or 0.39%, to settle at 22,600.

The benchmarks had opened higher after three consecutive sessions of losses but failed to sustain the gains as surging crude oil prices and escalating geopolitical tensions in the Middle East heightened concerns over inflation and corporate profitability. The Nifty and Sensex declined 2.4% and 2.2%, respectively, over the week, as rising crude oil prices subdued sentiment. Liquidity was also absorbed by strong demand for Reliance Industries-backed Jio Platforms’ $3.2-billion IPO, which was subscribed 13.8 times by 3:30 pm.

Crude Oil Near $114 Raises Inflation Concerns

Brent crude prices approached $114 per barrel amid concerns over potential supply disruptions following renewed Houthi attacks on Saudi Arabia. The rise in oil prices has raised concerns about India’s import bill, inflation outlook and corporate margins, given the country’s dependence on imported crude.

Higher energy costs could also weigh on consumption and increase input expenses for sectors sensitive to fuel and transportation costs. With geopolitical uncertainty keeping oil prices elevated, investors remained cautious despite the benchmarks’ initial recovery attempts.

All Sectoral Indices End In Red

Market weakness was broad-based, with all sectoral indices on the NSE ending lower. The Nifty Consumer Durables index was the worst performer, falling around 3%, while the Realty, Energy, Metal and PSU Bank indices each declined more than 2%.

Selling pressure extended to broader markets, with the Nifty Midcap index falling around 2.5% and the Nifty Smallcap index declining 2.9%. The sharper losses in mid- and small-cap stocks indicated that investor caution extended well beyond the frontline indices.

Shriram Finance, Tata Motors PV Among Top Nifty Losers

Among the biggest Nifty 50 laggards were Shriram Finance, Tata Motors Passenger Vehicles, Adani Enterprises, Tata Steel and Jio Financial Services. Eternal, Apollo Hospitals, Infosys, Tata Consultancy Services (TCS) and Maruti Suzuki were among the top gainers.

Information technology stocks offered some support during the session, with investors rotating out of AI stocks globally and piling into Indian IT companies. However, the Nifty IT index ended up in the red tracking the market trend.

Swiggy, PC Jeweller, Vodafone Idea In Focus

Stock-specific developments also influenced trading. Swiggy fell 17%to a record low after losses at its quick-commerce arm Instamart widened in the September quarter, renewing concerns over profitability amid intense competition.

PC Jeweller extended its decline despite reporting a 58% year-on-year increase in September-quarter net profit. Vodafone Idea fell for a fourth consecutive session as investors tracked competition in the telecom sector amid the Jio Platforms IPO. Zetwerk Manufacturing Business also slid 7% below its IPO price after initially listing at a premium. Colgate-Palmolive India shares fell 4.8% after the company reported quarterly profit below market expectations.

What Lies Ahead For The Market?

Investors will continue to monitor crude oil prices, geopolitical developments, foreign fund flows, currency movements and second-quarter earnings for direction. Although the benchmarks initially attempted to recover after three sessions of losses, the inability to sustain gains underscored the pressure from rising energy prices and uncertainty over the global outlook.

With Brent crude approaching $114 per barrel, developments in the Middle East and their implications for India’s inflation outlook, import bill and corporate earnings are likely to remain key drivers of domestic equities in the coming sessions.

Source:

• NSE
• BSE