- Indian equities declined due to elevated crude prices and geopolitics.
- High crude oil and RBI inflation concerns weighed on sentiment.
- Broader markets underperformed; Jio Platforms IPO continued subscription.
Indian equity benchmarks closed lower on Thursday as elevated crude oil prices and geopolitical uncertainty weighed on investor sentiment. Selling in automobile, metal and chemical stocks dragged the broader market, while banking and realty shares recovered some ground during the session.
The BSE Sensex settled at almost 73,250, crashing more than 450 points, while the NSE Nifty50 closed under 22,700, tanking 124 points.
Broader Markets Underperform
Selling pressure extended beyond frontline stocks. During afternoon trade, the Nifty MidCap index was down 1.04%, while the Nifty SmallCap index declined 0.91%.
Power Grid Corporation, Mahindra & Mahindra and Nestle India featured among the major Nifty50 laggards. The Nifty Chemical, Nifty Auto and Nifty Metal indices also underperformed, while buying in banking and realty shares helped limit losses in the benchmark indices.
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Crude Oil Near $110 Keeps Inflation Risks Alive
Oil prices remained a key concern amid continuing tensions in West Asia and uncertainty over supplies from the region. Brent crude traded above $110 per barrel during Wednesday’s session, while early Thursday indications placed it near $110.16. West Texas Intermediate (WTI) crude was around $99.76 per barrel.
For India, sustained high oil prices could increase import costs, put pressure on the rupee and raise inflation risks. Aviation, paints and chemicals are among the sectors exposed to higher energy and input costs.
RBI Policy And Trade Developments In Focus
The Reserve Bank of India’s policy outlook remained another consideration for investors. The RBI’s monetary policy minutes released on Wednesday highlighted concerns about persistent inflation following a unanimous 25-basis-point repo rate hike to 5.50%.
Expectations of further monetary tightening could influence rate-sensitive stocks, including banks, non-banking financial companies, automobiles and real estate.
Investors also monitored India-US trade negotiations. Reports have suggested the possibility of more favourable tariff treatment for India, although no revised tariff agreement had been announced in the information available.
Institutional Flows
Provisional exchange data showed that foreign institutional investors (FIIs) purchased equities worth Rs 1,022.32 crore on October 21. Domestic institutional investors (DIIs) were also net buyers, with purchases worth Rs 1,614.32 crore.
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Jio Platforms IPO Enters Day Two
In the primary market, the Rs 30,213-crore Jio Platforms IPO entered its second day of subscription on Thursday. The issue reportedly received bids for 3.16 times the shares on offer on its first day and is scheduled to close on October 23.
Subscription trends remain an important indicator of investor appetite as the primary market stays active alongside a volatile secondary market.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
