Indian stock markets ended a one-week rally on October 23, influenced by a surge in crude oil prices and foreign institutional investor (FII) outflows.
The Sensex closed at 73,123.83, while the Nifty settled at 22,600, reflecting the market's negative response.
Rising Brent crude oil prices reached a five-month high of $114.60 per barrel following Houthi attacks in Saudi Arabia, raising concerns over India's import bill, inflation, and corporate costs.
On October 22, foreign institutional investors withdrew ₹3,459 crore from Indian equities, partially offset by domestic institutional buying and IPO-related inflows linked to Jio Platforms.
Weak global cues also contributed; U.S. markets fell with the S&P 500 down 1.25% and the Nasdaq dropping 2.9%, pressured by technology and AI-related stock selling.
The Indian rupee ended at ₹94.40 per dollar after hitting an intraday low of ₹94.97, pressured by rising crude prices but supported somewhat by IPO-related foreign inflows.
Looking ahead, Indian markets remain sensitive to crude oil fluctuations, geopolitical tensions, and foreign fund flows, with ongoing global volatility likely to affect investor sentiment in the near term.
Sources
- The Hindu (Markets), https://www.thehindu.com/business/markets/indian-markets-snap-1-week-rally-following-surge-in-crude-fii-outflows/article71615820.ece
