Stock market today, October 23: Indian equity markets witnessed a sharp sell-off on Friday, with benchmark indices Sensex and Nifty extending their losses for the fourth consecutive session. Rising crude oil prices, escalating tensions in the Middle East and selling pressure across broader markets weighed on investor sentiment.
The 30-share BSE Sensex plunged as much as 797.02 points, or 1.09 per cent, from its previous close of 73,249.39 to hit an intraday low of 72,452.37. The index had earlier touched a day’s high of 73,766.51, marking a sharp reversal of 1,314.14 points from its intraday peak.
Similarly, the NSE Nifty 50 declined as much as 315.65 points, or 1.39 per cent, from its previous close of 22,687.65 to touch an intraday low of 22,372. The index had earlier climbed to 22,787.25 before reversing direction and falling 415.25 points from the day’s high.
Sensex, Nifty extend losses for fourth consecutive session
The latest decline follows Thursday’s weak trading session, when both benchmark indices closed in negative territory for the third consecutive day.
The NSE Nifty 50 also ended lower, falling 123.70 points, or 0.54 per cent, to close at 22,687.65. During Thursday’s session, the index had plunged as much as 256.50 points, or 1.12 per cent, to touch an intraday low of 22,554.85.
At Friday’s intraday lows, the Sensex was down 1,257.32 points and the Nifty had declined 439.35 points compared with their respective October 21 closing levels.
Why is the stock market falling today? 5 key reasons
1. Crude oil prices approach $114 per barrel
A sharp rise in international crude oil prices has emerged as one of the biggest concerns for Indian equities.
Brent crude climbed towards $114 per barrel amid fears of energy supply disruptions in the Middle East. The surge followed attacks on Saudi Arabia, one of the world’s largest oil exporters.
Higher crude oil prices are particularly concerning for India because of its heavy dependence on imported oil.
2. Middle East tensions raise supply concerns
Escalating geopolitical tensions have added to uncertainty in global financial markets.
Recent attacks on Saudi Arabian civilian and energy infrastructure have raised concerns over possible disruptions to oil production and transportation.
The developments have also increased fears of a wider regional conflict, prompting investors to reassess risks associated with energy prices and global economic growth.
3. Foreign investor selling weighs on sentiment
Foreign institutional investor selling has remained a concern for domestic markets in recent trading sessions.
4. Global technology sell-off adds to uncertainty
Weakness in global technology stocks has contributed to cautious investor sentiment.
The Nasdaq Composite fell more than 2 per cent overnight as concerns over heavy artificial intelligence spending weighed on major technology companies.
However, Indian IT stocks showed relative strength during Friday’s session, with the Nifty IT index gaining around 1 per cent in morning trade.
The gains in technology stocks were insufficient to offset selling pressure across other sectors.
5. Midcap and smallcap stocks witness sharper correction
Selling pressure extended beyond benchmark indices, with midcap and smallcap stocks recording steeper declines.
The broader smallcap index fell around 3.4 per cent, while the midcap index declined approximately 2.5 per cent during Friday’s morning session.
The weakness was widespread, with 15 of the 16 major sectoral indices trading lower during the session.
Stock market today: What should investors watch next?
Investors will closely monitor crude oil prices, developments in the Middle East, foreign institutional investor activity and quarterly corporate earnings for further market direction.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)