Indian equities tumble over 2% as oil prices, FII outflows and Middle East tensions weigh on market
The Sensex and Nifty fell more than 2% last week amid rising crude prices, foreign institutional investor outflows and geopolitical concerns, while global markets also posted declines.
Indian equities posted sharp losses last week, with the Sensex slipping 126 points to 73,124 and the Nifty 50 dropping 88 points to 22,600, ending a two-week rally. The decline was led by mid- and small-cap indices, which fell up to 3%, reflecting heightened volatility and valuation worries.
"The key concern in today’s market is the disproportionately sharp correction in mid- and small-caps relative to the Nifty. Valuation concerns and unwinding of leveraged positions, combined with surging crude prices and weak global cues, have intensified pressure on the broader market," said Vinod Nair, Head of Research at Geojit Investments.
Nair added that persistent Middle East tensions could keep oil prices elevated, while a broader AI-driven equity sell-off continues to dampen risk appetite. He noted that inflation trends and central-bank responses will shape market direction, with earnings visibility and valuation comfort becoming decisive factors.
U.S. markets also closed lower on Friday, with the S&P 500 down 0.52%, the Nasdaq slipping 0.21% and the Dow falling 1.23%. European indices fell amid rising oil prices and political uncertainty in France, with Germany’s DAX down 0.8% and Britain’s FTSE 100 down 0.3%.
On the NSE, the most valuable trades were recorded by Infosys, Swiggy and Cyient, while Vodafone Idea led in volume. Stocks such as International Gemmological Institute and Cyient attracted buying interest, whereas Swiggy, J&K Bank and others faced selling pressure. Of the 3,724 stocks traded on October 23, 624 advanced, 3,011 declined and 89 were unchanged, indicating a market breadth favoring bears.