Mumbai, Oct 12: Indian equity markets closed lower on Monday as selling pressure in the second half of the session erased early gains, with elevated crude oil prices, high US bond yields and continued foreign investor outflows weighing on investor sentiment.
The BSE Sensex declined 547.65 points, or 0.76%, to settle at 71,924.68. The index had opened higher at 72,771.32 but failed to sustain its initial momentum. The NSE Nifty 50 fell 157.10 points, or 0.70%, to close at 22,363.35.
Despite the weakness in benchmark indices, broader markets showed resilience. The Nifty MidCap 100 edged up 0.08%, while the Nifty SmallCap 100 gained 1.42%, indicating buying interest in select mid- and small-cap stocks.
Sectoral performance remained mixed. FMCG and PSU banking stocks faced notable selling pressure, while media and chemical stocks recorded gains. Shares of ITC, Tech Mahindra and Apollo Hospitals Enterprise were among the major drags on market sentiment.
Elevated crude oil prices continued to concern investors because higher energy costs can increase inflationary pressure, raise input expenses for businesses and widen India’s import bill. High US bond yields also made emerging-market equities less attractive, while sustained foreign institutional investor outflows added to the pressure on domestic stocks.
The rupee’s sharp appreciation at the opening provided some support to sentiment, but the positive currency movement was insufficient to prevent the benchmarks from ending the session in the red.
Investors are likely to remain focused on global market trends, crude oil movements, foreign fund flows and upcoming corporate earnings for further direction. Market participants will also monitor how companies navigate rising input costs and uncertain global economic conditions in the coming sessions.