Indian equity markets closed lower on Thursday, October 22, extending their losses for a third consecutive session as rising crude oil prices and escalating tensions in the Middle East weighed on investor sentiment. Weak cues from Asian markets added to the selling pressure, while concerns over inflation and higher input costs kept investors cautious.
The BSE Sensex fell 460.30 points, or 0.62%, to close at 73,249.39, while the NSE Nifty 50 declined 123.70 points, or 0.54%, to settle at 22,687.65. Selling pressure also weighed on mid-cap and small-cap stocks, indicating broad-based weakness across the domestic market.
Asian equities traded mixed to lower amid concerns over the Middle East conflict, elevated energy prices and uncertainty surrounding technology-sector spending. Brent crude prices remained a key concern for India, given the country's dependence on imported oil and the potential impact of higher energy costs on inflation, corporate margins and the trade deficit.
On Thursday, Japan’s Nikkei 225 fell 2.3%, South Korea’s Kospi dropped 3.8%, Hong Kong’s Hang Seng declined 3.1%, and China’s Shanghai Composite slipped 1.6%, while Australia’s S&P/ASX 200 edged down 0.4%. Technology and semiconductor stocks led the declines in several markets, as investors reassessed earnings prospects and the sustainability of heavy AI spending. Rising energy prices added to concerns about inflation and the potential impact on global economic growth.
"Investor sentiment is likely to remain cautious in the near term, with market direction hinging on crude oil movements, geopolitical developments, global market trends and corporate earnings," said a senior stock research analyst from a foreign brokerage.