Sensex and Nifty End Two-Week Winning Streak Amid Oil Price Surge
Indian equity markets faced a downturn as geopolitical tensions drove oil prices higher, leading to significant foreign selling.
Sensex dropped 1,605.44 points, closing at 74,729.27.
Nifty 50 fell 546.15 points, ending at 22,600.
Foreign institutional investors sold equities worth Rs 2,697.37 crore for the ninth week in a row.
Indian equity markets experienced a significant decline, with both the Sensex and Nifty indices snapping their two-week rally. The BSE Sensex fell by 1,605.44 points, or 2.14%, closing at 74,729.27, while the Nifty 50 dropped 546.15 points, or 2.25%, to finish at 22,600. This downturn was primarily attributed to rising crude oil prices, which surpassed $116 per barrel due to escalating geopolitical tensions, raising concerns about potential energy supply disruptions.
The market's struggles were compounded by persistent foreign institutional investor (FII) selling, marking the ninth consecutive week of net outflows. FIIs offloaded equities worth Rs 2,697.37 crore during this period, although the pace of selling showed signs of easing. In contrast, domestic institutional investors (DIIs) provided some support, purchasing equities worth Rs 10,942.19 crore, helping to cushion the impact of foreign sell-offs.
Sector-wise, all indices closed in the red, with the Nifty Defence index suffering the most, plummeting by 7%. Other significant declines were seen in the Nifty Consumer Durables and Nifty Capital Markets indices, which fell by 6.4% and 6%, respectively. The Nifty Midcap 100 index saw a sharp decline of 5.6%, while the Nifty Smallcap 100 index dropped over 7%, with several stocks witnessing losses between 10% to 25%.
The overall market capitalization of BSE-listed companies fell by more than Rs 20 lakh crore during the week. Among the hardest-hit were HDFC Bank, Bajaj Finance, and Reliance Industries, which recorded substantial market value erosion. Conversely, Tata Consultancy Services (TCS), HCL Technologies, and UltraTech Cement emerged as key wealth creators despite the broader market downturn.
Looking ahead, the Indian rupee exhibited volatility but remained relatively stable, closing at 94.94 per dollar on October 23, compared to 94.95 the previous week. The currency traded within a range of 94.32 to 94.97 against the US dollar, reflecting the ongoing market uncertainties and external economic pressures.
