MUMBAI, India, October 23 (ANI) — India’s stock market continued its downward trend Friday, with benchmark indices Sensex and Nifty 50 closing lower amid selling pressure across sectors, rising crude oil prices and weak global cues.
The Nifty 50 closed at 22,600, down 87.65 points, or 0.39%, while the BSE Sensex settled at 73,123.83, declining 125.56 points, or 0.17%.
Vinod Nair, head of research at Geojit Investments, said the sharp correction in mid- and small-cap stocks relative to the Nifty remained a key concern for the market.
“The key concern in today’s market is the disproportionately sharp correction in mid- and small-caps relative to the Nifty. Valuation concerns and unwinding of leveraged positions, combined with surging crude prices and weak global cues, have intensified pressure on the broader market,” Nair said.
He added that the rise in India VIX indicated that near-term volatility could persist. Continued tensions in the Middle East could keep crude oil prices elevated, while a global equity sell-off driven by concerns surrounding artificial intelligence continued to weigh on investors’ risk appetite.
Looking ahead, Nair said inflation trends and the response of major central banks as they balance inflation and economic growth would be critical in determining market direction. He added that stock- and sector-specific opportunities were likely to dominate, with earnings visibility and valuations emerging as key factors for investors.
On the National Stock Exchange, nearly all sectoral indices ended lower. The Nifty Metal index was the worst performer, falling 2.98%, followed by the Nifty Consumer Durables index, which declined 2.93%.
The Nifty PSU Bank index fell 2.52%, while the Nifty FMCG and Nifty Pharma indices each declined 1.46%. The Nifty Private Bank index lost 1.13%, Nifty Media fell 1.12%, Nifty Auto declined 0.90% and Nifty IT slipped 0.33%.
Among Nifty 50 constituents, Eternal, Apollo Hospitals, Asian Paints, TCS, UltraTech Cement and Maruti were among the top gainers. Shriram Finance, Adani Enterprises, JSW Steel, Jio Finance, Tata Steel, Adani Ports and TMPV were among the top losers.
Crude oil prices added to market concerns, with Brent crude gaining 1% to $114.31 per barrel at the time of reporting.
Rajeev Sharan, head of research at Brickwork Ratings, said the rupee traded within a narrow range during the session, opening 3 paise stronger at 94.78 before weakening to around 95.15 against the dollar by the afternoon.
“The rupee held in a narrow band on Friday, opening 3 paise firmer at 94.78 before softening toward 95.15 to the dollar by afternoon,” Sharan said.
He said rising Brent crude prices amid tanker strikes in the Middle East were putting pressure on the rupee by increasing India’s oil import bill. At the same time, the energy shock was reviving global inflation concerns, pushing up U.S. bond yields and weighing on gold prices.
Sharan said the rupee could face resistance around 95.30 as long as oil prices remained elevated. He added that gold could find support near current levels as Dhanteras demand absorbed the temporary decline.
Gold prices fell 0.31% to Rs. 142,871 per 10 grams for 24-karat gold, while silver declined 1.84% to Rs. 195,927 per kilogram at the time of reporting.
In other Asian markets, Japan’s Nikkei 225 was the only major index among those listed to close lower, declining 0.51% to 62,587. Singapore’s Straits Times gained 0.13% to 5,422, while Hong Kong’s Hang Seng rose 0.73% to close at 23,104. South Korea’s KOSPI advanced 0.30% to 5,550. Taiwan’s weighted index remained closed for a holiday. (ANI)
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