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Indian markets witness bloodbath as oil surge, geopolitical risks rattle sentiment
Oct-23-2026

Indian equity benchmarks witnessed a sharp sell-off during the holiday-shortened week, with the Sensex and Nifty remaining under sustained pressure throughout the period. Investor sentiment was dampened by a surge in crude oil prices amid escalating geopolitical tensions in West Asia, raising concerns over inflation, India's import bill and the broader economic outlook. 

Some of the major developments during the week are:

Crude oil surges on Iran tensions: Crude oil futures surged above $114 per barrel amid concerns over prolonged supply disruptions, following reports of a possible joint U.S.-Israel military operation against Iran after the U.S. midterm elections. 

Commerce ministry organising FTA outreach initiatives to help states unlock export potential: Union Minister Piyush Goyal said that the commerce ministry is organising a series of free trade agreement (FTA) outreach initiatives across the country to ensure greater utilisation of these pacts. 

Core sectors’ growth rises to 7.9% in September; iron ore, electricity key drivers: Production in key infrastructure industries rose 7.9% in September, the fastest pace in the new series, driven by strong performance in the iron ore, electricity, and cement segments. 

India's business activity hits 4-month high in October: The HSBC Flash India PMI Composite Output Index, covering manufacturing and services, rose to 56.7 in October from 55.9 in September, indicating a marked monthly expansion in business activity and the fastest growth since June.

European companies express keen interest in investing in India: Commerce and Industry Minister Piyush Goyal has noted that several European companies have expressed keen interest in investing in India, with many carmakers exploring manufacturing opportunities in the country. 

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex slipped 1605.44 points or 2.15% to 73,123.83 during the week ended October 23, 2026. On the sectoral front, S&P BSE Capital Goods was down by 5,543.59 points or 7.54% to 67,988.64, S&P BSE Power was down by 448.40 points or 6.35% to 6,611.61, S&P BSE Realty was down by 345.79 points or 5.36% to 6,108.38, S&P BSE Fast Moving Consumer Goods was down by 888.51 points or 5.22% to 16,121.49 and S&P BSE Metal was down by 1,958.39 points or 5.06% to 36,723.17 were the top losers, while there were no gainers on the BSE.

NSE movement for the week

The Nifty slipped 546.15 points or 2.36% to 22,600.00. On the National Stock Exchange (NSE), Nifty Mid Cap 100 decreased 3329.10 points or 5.63% to 55,800.65, Nifty Next 50 lost 3160.00 points or 4.58% to 65,828.60, and Bank Nifty was down by 1556.65 points or 2.79% to 54,287.35, while Nifty IT was up by 71.40 points or 0.22% to 31,995.50.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net buyers in equity segment in the week, with gross purchases of Rs 51,472.96 crore and gross sales of Rs 47,583.85 crore, leading to a net inflow of Rs 3,889.11 crore. They also stood as net buyers in the debt segment with gross purchases of Rs 3,701.63 crore against gross sales of Rs 3,129.00 crore, resulting in a net inflow of Rs 572.63 crore. In hybrid segment, FIIs stood as net sellers, with gross purchases of Rs 70.84 crore and gross sales of Rs 98.19 crore, leading to a net outflow of Rs 27.35 crore. (Provisional)

Industry and Economy

Highlighting India’s growth trajectory, Defence Minister Rajnath Singh has said that India contributes more than 16% to global economic growth and is growing at approximately 7.8%, even as several major economies face a slowdown due to the conflict in West Asia. The minister, who is in Tajikistan on a two-day official visit to attend a meeting of the Shanghai Cooperation Organisation (SCO), made these remarks while addressing the Indian diaspora. Referring to the changing global trade landscape, the minister said India has entered into free trade agreements with 38 countries, opening new markets for Indian manufacturers and producers. 

Outlook for the coming week

Benchmarks ended the week in red as rising crude oil prices and escalating geopolitical tensions in the Middle East dampened investor sentiment.

In the coming week, investors will be eyeing Industrial Production data which is going to be out on October 28. Market participants will be eying Government Budget Value (fiscal deficit) on October 30. On same day, Bank Loan & Deposit growth and Foreign Exchange Reserves data are going to be out. 

Markets would also be tracking slew of earnings from industry’s big-wigs, like Paytm, Mankind Pharma, L&T, Maruti Suzuki India, Bajaj Auto, Tata Steel, Cipla, HUL, Adani Ports, Adani Enterprises, TVS Motor Company, Asian Paints, Trent, Sun Pharma, BEL, IOCL, GAIL India etc. 

On the global front, investors would be eyeing economic data from United States (US) starting with Dallas Fed Manufacturing Index on October 26, followed by Redbook, Dallas Fed Services Index, House Price Index on October 27, API Crude Oil Stock, EIA Crude Oil Stocks and Fed Interest Rate Decision on October 28, Fed Press Conference, Core PCE Price Index, GDP Price Index, Jobless Claims on October 29, Employment Cost Index and Baker Hughes Oil Rig Count October 30.

Top Gainers 

  • Tech Mahindra up by 8.48% was the top gainer on Nifty for the week - Tech Mahindra continued to trade higher post its better-than-expected Q2 earnings. It has reported 32.74% rise in its consolidated net profit at Rs 1,585.60 crore in Q2FY27 as compared to Rs 1,194.50 crore in Q2FY26. Meanwhile, Tech Mahindra and Nottingham Spirk have partnered to help manufacturers accelerate innovation, industrialization, and enterprise transformation at scale.
  • Tata Consultancy Services (TCS) up by 7.66% was another top gainer on Nifty for the week - TCS traded higher after it expanded its long-standing partnership with Indian Bank, to deploy TCS BaNCS for Treasury at Indian Bank's Colombo branch in Sri Lanka, making the entry of TCS BaNCS for Treasury in the country. The company will help Indian Bank modernize its overseas treasury operations across money markets, investment management, and foreign exchange.

Top Losers 

  • Shriram Finance down by 8.35% was the top loser of the week on Nifty - Shriram Finance traded under pressure after its Q2 numbers failed to meet street expectations. It has reported a 59.18% rise in its consolidated net profit at Rs 3,683.81 crore for Q2FY27, as compared to Rs 2,314.17 crore for the same quarter in the previous year.
  • Adani Enterprises down by 8.26% was another top loser of the week on Nifty - Adani Enterprises faced selling pressure despite the company’s signing a non-binding MoU for a proposed 50:50 joint venture to manufacture and assemble artificial intelligence (AI) and data centre equipment in India. The joint venture would manufacture and assemble AI racks, servers, storage and networking equipment used in data centres.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 23,175.25 on October 19 and lowest level of 22,372.00 on October 23. On the last trading day, the Nifty closed at 22,600.00 with weekly loss of 546.15 points or 2.36 percent. For the coming week, 22,256.25 followed by 21,912.50 are likely to be good support levels for the Nifty, while the index may face resistance at 23,059.50 and further at 23,519.00 levels.

US Market

The U.S. markets traded mostly higher during the week as the 10-year Treasury yield tumbled below 5% to lowest level in nearly a month. Meanwhile, Investors focused on next week’s two-day Federal Reserve meeting.

Some of the major developments during the week are:    

Jobless claims in U.S. drop in the week ended October 17: Initial jobless claims fell to 194,000, a decrease of 6,000 from the previous week's revised level of 200,000. 

Pending home sales in U.S. plunge in September: The National Association of Realtors said its pending home sales plummeted by 7.3 percent to 66.0 in September after rising by 0.3 percent to 71.2 in August. 

U.S. housing starts plunge in September: The Commerce Department said housing starts plunged by 5.2 percent to an annual rate of 1.221 million in September.

Crude oil inventories in U.S. decrease in last week: The Energy Information Administration said crude oil inventories fell by 3.1 million barrels in the week ended October 16 after tumbling by 8.6 million barrels in the previous week.

U.S. leading economic index unexpectedly unchanged in September: The leading economic index was unchanged in September after edging down by 0.1 percent in August. Street had expected the index to dip by 0.2 percent.

European Market

European markets remained sluggish during the passing week, amid renewed concerns about France's finances, continued Houthi attacks in Saudi Arabia, and doubts over whether hyperscalers' massive AI investments will yield adequate returns. 

Some of the major developments during the week are:

Eurozone current account surplus lowest since 2023: The euro area current account surplus declined sharply to the lowest since early 2023 in August. The current account surplus fell to EUR 9 billion from EUR 27 billion in the previous month.

German ZEW economic sentiment deteriorates: The economic confidence index fell to a three-month low of 28.1 in October from 34.7 in the previous month. The score was forecast to drop to 30.2.

Spain trade gap widens in August: The trade deficit rose to EUR 7.81 billion in August from EUR 5.98 billion in the corresponding month last year. In July, the shortfall was EUR 5.22 billion.

German producer price inflation highest since 2023 on energy price surge: The industrial producer price index rose 6.7 percent year-on-year in September, which was much bigger than the 4.6 percent increase in the previous month.

French manufacturing sentiment highest since mid-2022: The manufacturing sentiment index climbed to 105 in October from 101 in the previous month. The score was the highest since July 2022.

Asian Market

Asian markets traded mostly in red during week on concerns over rising oil prices following Houthi strikes on Saudi oil infrastructure and Red Sea ports.

Some of the major developments during the week are:

Japan composite PMI stays at 4-month low: Flash data showed Japan’s S&P Global Composite PMI Business Activity Index held steady at 52.3 in October 2026, unchanged from September’s final reading. The growth remained at its slowest pace since May.

Japan posts trade deficit in September: Japan’s trade deficit widened significantly to JPY 536.6 billion in September 2026 from JPY 277.7 billion in the same month a year earlier, exceeding market expectations of a JPY 181.0 billion shortfall and marking a fifth consecutive monthly deficit.

Japan inflation climbs in September: Japan's annual inflation rate accelerated to 2.1% in September 2026 from 1.9% in the previous two months, marking the highest level since December 2025.

Bank of Korea keeps rate on hold: The Bank of Korea (BoK) left its base rate unchanged at 3% at its October 2026 meeting, in line with expectations, pausing after rare back-to-back 25-basis-point hikes in July and August to address inflation risks.

China's economy grows in Q3: China’s economy grew 4.5% y-o-y in Q3 2026, accelerating from Q2’s three-year low of 4.3% and beating market expectations of 4.4%.
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