Indian stock markets extend losses for third session; Nifty closes below 22,700

New Delhi, Oct 22 : Indian stock markets ended lower for the third consecutive session on Thursday, with the Nifty slipping below the 22,700 mark as escalating geopolitical tensions pushed crude oil prices above USD 110 per barrel, fuelling inflation concerns and dampening investor sentiment.

At the close, the BSE Sensex declined 460.30 points, or 0.62 per cent, to settle at 73,249.39, while the NSE Nifty fell 123.70 points, or 0.54 per cent, to close at 22,687.65.

Markets opened lower and remained in negative territory for most of the session. The Nifty briefly slipped below 22,600 amid broad-based selling across sectors before recovering from the day's low of 22,554.85 to finish above 22,650.

All sectoral indices ended in the red. Auto, Consumer Durables, Oil and Gas, Information Technology, Energy and FMCG indices declined between 0.5 and 1.7 per cent, while the Media index registered the steepest fall of 2.3 per cent.

Among the Nifty constituents, Nestle India, Tata Motors Passenger Vehicles, HDFC Life, Tech Mahindra and Reliance Industries were among the major losers. Bajaj Finance, Cipla, State Bank of India, Bajaj Auto and ICICI Bank were among the gainers.

The Indian rupee snapped its eight-session gaining streak, depreciating 36 paise to close at 94.82 against the US dollar, compared with the previous close of 94.46.

More than 480 stocks touched their 52-week lows during the session. These included CreditAccess Grameen, M&M Financial Services, SRF, Swiggy, Garden Reach Shipbuilders, Mazagon Dock Shipbuilders, Bombay Burmah, Vishal Mega Mart, UTI Asset Management Company, Kama Holdings, SBI Life Insurance, Avenue Supermarts, Power Grid Corporation, Max Healthcare, NAVA, Tata Motors Passenger Vehicles, Finolex Industries, Lupin, Colgate-Palmolive and Fortis Healthcare, among others.

Vinod Nair, Head of Research at Geojit Investments Limited, said inflation concerns took centre stage as renewed escalation in West Asia sent crude oil prices sharply higher.

The rupee reversed its recent trend and weakened steadily through the session, weighing on investor sentiment. Although benchmark indices attempted a recovery led by banking stocks, the rebound failed to sustain at higher levels.

With domestic bond yields climbing back to recent highs, equity valuation premiums came under renewed scrutiny, resulting in broader selling across almost all sectors, he said.

Nair added that Indian equities ended lower after a volatile session, tracking negative global cues ahead of Japan's inflation data. Mid-cap and small-cap stocks underperformed their large-cap counterparts.

In the near term, foreign fund flows could remain under pressure as investors remain cautious about bond yields ahead of next week's policy decisions by the US Federal Reserve, the European Central Bank and the Bank of Japan.

Domestically, market direction will depend on second-quarter earnings performance, with investors closely monitoring corporate management commentary on the demand outlook for the coming quarters, he added.