Indian markets snap 1-week rally following surge in crude, FII outflows

Indian markets declined on Friday (October 23, 2026), snapping the one-week rally, with most indices ending in red following a surge in crude prices and foreign fund outflows.  

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 before unwinding some losses and ended at 22,600, down 87.65 points or 0.4%.  

“Benchmark indices closed in negative territory as elevated Brent crude oil prices and weak global cues continued to weigh on investor sentiment. Selling pressure remained broad-based, with the broader market witnessing a sharper decline than the frontline indices,” Pabitro Mukherjee, deputy vice-president- Research, Bajaj Broking said in a note. 

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. Heightened worries over geopolitical tensions continue to fuel risk-averse sentiments towards emerging market economies amongst global investors.  

Foreign institutional investors remain net sellers in Indian equities. They withdrew ₹3,459 crore from the Indian stock market on Thursday (October 22, 2026), though IPO-linked flows and domestic institutional buyers offset the sustained outflow.  

Further, broader sentiment about technology and Artificial Intelligence stocks triggered a sell-off on Wall Street on Thursday (October 22, 2026), which was reflected in Asian markets’ decline. U.S. equity indices ended lower, with the S&P 500 ending 1.25% lower and the Nasdaq losing 2.9% on Thursday.  

The rupee too weakened for the second consecutive day, driven by the surge in crude prices. The Indian rupee ended at 94.40 against the dollar, down 0.1% from its previous close. During the day, the rupee inched towards the 95 per dollar mark and hit a low of 94.97 against the greenback. However, Jio Platforms Ltd’s IPO-linked foreign fund inflows capped the losses for domestic currency.