Mumbai, Oct 23: Indian stock markets reversed their early gains on Friday as rising crude oil prices and weak global cues weighed on investor sentiment. Buying in information technology (IT) stocks provided some support, but selling across several sectors pushed the benchmark indices lower.
The BSE Sensex, which opened more than 400 points higher at 73,665.64, later fell to 72,964.13. The NSE Nifty 50 also gave up its opening gains, declining to 22,529.15 in morning trade. Both indices extended their losing streak to a fourth consecutive session.
Crude Oil Prices Weigh on Markets
Rising crude oil prices remained the biggest concern for investors, with Brent crude approaching $114 per barrel amid escalating tensions in the Middle East. Higher oil prices could increase India’s import bill, add to inflationary pressure and raise operating costs for businesses.
Companies that depend heavily on fuel, transportation and energy may face additional cost pressures if crude prices remain elevated. Investors are therefore closely watching developments in global energy markets and their potential impact on economic growth.
IT Stocks Offer Some Support
IT shares moved against the broader market trend, with the Nifty IT index gaining around 1 per cent during the morning session. The gains came after a sharp decline in US technology stocks, as investors reassessed concerns surrounding artificial intelligence investments.
However, strength in IT shares was not enough to lift the wider market. Selling pressure also affected mid-cap and small-cap stocks, indicating that market weakness extended beyond the frontline indices.
Foreign Investor Selling Continues
Foreign institutional investors sold equities worth ₹3,459 crore on Thursday, while domestic institutional investors bought shares worth ₹2,891 crore. Domestic buying helped cushion some of the pressure, but continued foreign selling remained a concern.
Global markets also added to the cautious mood. The Nasdaq Composite fell 2.6 per cent on Thursday, while several Asian markets opened lower amid concerns about technology stocks and geopolitical developments.
Market Outlook
The near-term direction of Indian equities is likely to depend on crude oil prices, foreign investment flows and global market sentiment. Persistent increases in energy costs could put pressure on business margins and consumer spending, while continued buying in select sectors may help limit losses.
For investors, the key concern is whether the Sensex and Nifty can stabilise after four consecutive sessions of declines. Until global uncertainties ease and selling pressure reduces, market volatility is likely to remain elevated.