- Indian equities plummeted as crude oil prices surged.
- Persistent foreign selling, US yields, RBI policy weighed.
- Brent crude topping $100 worried India’s economic outlook.
Indian equity benchmarks ended Thursday’s session sharply lower as rising crude oil prices, persistent foreign investor selling and elevated US Treasury yields weighed on sentiment.
The BSE Sensex closed trading just under 71,600, bleeding over 1,000 points, while the NSE Nifty50 ended the session near 22,230, crashing more than 350 points.
The weakness came a day after the RBI raised the repo rate by 25 basis points to 5.5 per cent and shifted its monetary policy stance to calibrated tightening.
Crude Oil, West Asia Risks Weigh
Brent crude remained above the $100 mark as supply concerns linked to rising attacks in West Asia fuelled risk aversion.
Brent crude was at $101.53 per barrel, up 0.32 per cent, while WTI stood at $90.95, higher by 0.29 per cent.
For India, sustained high oil prices remain a concern for inflation, the current account and the rupee. Aviation, paints, chemicals and transport stocks could also remain sensitive to higher energy costs.
Also Read : Aadhaar Rules Change! New Documents Needed To Change Your Name
Realty, Financial Stocks Under Pressure
The Nifty Realty index was the biggest sectoral laggard, while IT was among the better-performing pockets.
SBI Life Insurance and Bajaj Finance were among the notable Nifty losers.
The broader market was also mixed earlier in the session, with the Nifty MidCap index down 0.43 per cent, while the Nifty SmallCap index gained 0.09 per cent.
The sell-off intensified through the session, with the Nifty falling 385.85 points, or 1.71 per cent, to 22,217.20, while the Sensex declined 1,140.36 points, or 1.57 per cent, to 71,498.34, as of 2:18 PM.
FII Selling Adds To Pressure
Foreign investor selling remained a major overhang. FIIs sold Indian equities worth Rs 6,121.37 crore on October 7, while DIIs bought shares worth Rs 4,596.57 crore.
The India VIX rose 1.98 per cent to 13.88, indicating higher expected volatility. The rupee traded around Rs 96.66 per US dollar, while the Dollar Index was largely unchanged at 102.218.
The US 10-year Treasury yield stood at 5.304 per cent, keeping global financial conditions tight and adding pressure on valuation-sensitive equities.
Global Markets Remain Weak
US markets ended lower in the previous session, with the Dow down 0.66 per cent, the S&P 500 down 0.22 per cent and the Nasdaq lower by 0.22 per cent.
Asian markets were also broadly weak, with the Nikkei falling 0.98 per cent and the Hang Seng declining 0.62 per cent, although the Shanghai Composite gained 0.31 per cent.
Minutes from the US Federal Reserve’s September meeting showed most policymakers considered another rate increase by year-end potentially appropriate, keeping rate expectations and bond yields in focus.
Also Read : Home Loan Co-Borrower: Why Parents Are Helping Children Buy Homes In Tier-2 Cities
Market Outlook
The Nifty had closed at 22,603.05 on October 7, down 173.05 points, while the Sensex settled at 72,638.70, lower by 429.11 points.
Thursday’s sharper decline reflected the combined impact of crude oil concerns, FII selling, elevated US yields and the RBI’s tighter policy stance.
With earnings season beginning and global markets remaining volatile, investors are likely to keep a close watch on crude prices, foreign flows, bond yields and corporate results in the near term.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
