Mumbai, Oct 22: Indian stock markets ended lower for the third consecutive session on Thursday as rising crude oil prices, a weaker rupee and broad-based selling weighed on investor sentiment. Concerns over inflation, import costs and the outlook for interest rates kept investors cautious.
The BSE Sensex declined 460.30 points, or 0.62%, to close at 73,249.39, while the NSE Nifty 50 fell 123.70 points, or 0.54%, to settle at 22,687.65.
Rising Crude Oil Adds to Market Concerns
Crude oil prices trading above $110 a barrel raised concerns about India’s import bill and the potential impact on domestic inflation. Higher energy prices can increase transportation and production costs for businesses, putting pressure on profit margins and household budgets.
The rupee weakened by around 30 paise to 94.81 against the US dollar, adding to concerns over imported inflation and external economic pressures. Investors continued to monitor geopolitical developments and currency movements for signals about the market’s near-term direction.
IT, FMCG and Media Stocks Drag Indices Lower
Selling pressure was concentrated in information technology, fast-moving consumer goods (FMCG) and media stocks, which emerged as the biggest sectoral drags. Nestlé India, Eternal and HDFC Life Insurance Company were among the notable losers in the Nifty 50.
Pharmaceutical stocks bucked the broader trend, with the Nifty Pharma index closing higher. The sector’s relative strength highlighted the selective buying interest in an otherwise weak market.
Mid-Cap and Small-Cap Stocks Under Pressure
The decline extended to broader markets, reflecting continued caution among investors. The Nifty MidCap 100 slipped 0.87%, while the Nifty SmallCap 100 fell 1.17%.
The losses suggest that selling pressure was not limited to large-cap stocks. Uncertainty surrounding crude oil, currency movements and the wider economic outlook continued to influence risk appetite.
Nifty Technical Outlook Remains Cautious
The Nifty closed above its 200-week moving average but failed to sustain gains near its 20-day moving average, indicating continued selling pressure at higher levels.
Market analysts identified 22,600 as a crucial support level, while 22,800 and 23,000 remain important resistance zones. A sustained break below support could intensify selling, whereas a recovery above resistance would be needed to improve the near-term outlook.
Oil Prices and Geopolitical Developments in Focus
Market direction is likely to remain sensitive to crude oil prices, geopolitical developments and movements in the rupee. A prolonged rise in energy costs could complicate the inflation outlook and influence expectations surrounding monetary policy.
For businesses, higher input costs and financial market volatility could affect operating margins, investment decisions and consumer demand. Investors are likely to remain selective while assessing global developments and sector-specific opportunities.
The third consecutive session of losses underscores the pressure facing Indian equities amid rising external risks. Until oil prices stabilise and investor confidence improves, markets could remain volatile, with traders closely watching key technical levels and changes in global sentiment.
