Indian markets fell on Friday, ending a one-week rally as crude prices surged and foreign funds pulled money out. Sensex and Nifty both closed lower, while the rupee weakened for a second consecutive day.
Indian markets declined on Friday, October 23, 2026, snapping a one-week rally, with most indices ending in red. A surge in crude prices and foreign fund outflows drove the drop.
Sensex and Nifty close lower
Sensex plunged over 1% during the day before settling at 73,123.83, down 125.56 points from its previous close. Nifty declined to the 22,400 level, then unwound some losses and ended at 22,600, down 87.65 points or 0.4%.
Pabitro Mukherjee of Bajaj Broking said in a note that selling pressure remained broad-based, with the broader market seeing a sharper decline than the frontline indices.
Crude hits a 5-month high
Brent crude prices hit an over 5-month high of $114.6 per barrel, up 1% from the previous close, after Houthi attacks in Saudi Arabia. Geopolitical tensions continue to fuel risk-averse sentiment toward emerging market economies among global investors.
Foreign outflows and a Wall Street sell-off
Foreign institutional investors remain net sellers in Indian equities. They withdrew ₹3,459 crore from the Indian stock market on Thursday, though IPO-linked flows and domestic institutional buyers offset the sustained outflow.
Broader sentiment about technology and Artificial Intelligence stocks also triggered a sell-off on Wall Street on Thursday, which was reflected in Asian markets' decline. The S&P 500 ended 1.25% lower and the Nasdaq lost 2.9%.
The rupee weakened for the second consecutive day, driven by the surge in crude prices. It ended at 94.40 against the dollar, down 0.1%, after hitting a low of 94.97 during the day. However, Jio Platforms Ltd's IPO-linked foreign fund inflows capped the losses for the domestic currency.
Source: The Hindu
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