Sensex tanks 671 points, Nifty below 22,400 as crude surges to $114
Key equity benchmarks extended their losses in afternoon trade as Brent crude surged to $114 per barrel amid escalating geopolitical tensions and concerns over energy supply disruptions. The Nifty slipped below 22,400. Renewed FII selling, added to the pressure, while broader indices declining sharply. Rising expectations of US Federal Reserve rate hikes, driven by inflation concerns, further dampened sentiment, with metal, realty and consumer durables stocks among the major losers.
At 13:30 IST, the S&P BSE Sensex tanked 670.59 points or 0.92% to 72,578.80. The Nifty 50 index slumped 278.30 points or 1.23% to 22,409.35.
The broader market underperformed the frontline indices. The Nifty Midcap 150 Index declined 2.96% and the Nifty Smallcap 250 Index fell 3.47%.
The market breadth was weak. On the BSE, 372 shares rose and 3192 shares fell. A total of 80 shares were unchanged.
Buzzing Index:
The Nifty PSU Bank index plunged 2.74% to 8,031.50, reversing Thursday's 0.07% gain.
Punjab & Sind Bank tumbled 6.93%, followed by UCO Bank (4.75%), Indian Overseas Bank (4.55%), Canara Bank (4.43%), Central Bank of India (4.30%), Bank of Maharashtra (4.28%), Bank of India (4.13%), Bank of Baroda (2.71%), Punjab National Bank (2.56%), Indian Bank (2.44%), Union Bank of India (2.01%) and State Bank of India (1.90%).
Stocks in Spotlight:
Rallis India declined 4.26% after the company?s standalone net profit fell 16.67% to Rs 85 crore in Q2 FY27 compared with Rs 102 crore in Q2 FY26. Revenue from operations declined marginally by 0.35% to Rs 858 crore in the quarter ended 30 September 2026, compared with Rs 861 crore in the corresponding quarter last year.
Global Markets:
Dow futures were down 224 points, signalling a weak opening for US stocks.
European indices opened lower on Friday as investors assessed escalating geopolitical tensions in the Middle East, volatile crude oil prices and concerns over inflation and interest rates. Brent crude remained elevated at around $114 per barrel amid fears of energy supply disruptions, while investors also monitored corporate earnings and the returns on artificial intelligence (AI) investments.
UK retail sales volumes fell 0.4% in September, more than the 0.1% drop expected. Warm weather hit online clothing and supermarket volumes fell. Three-month volumes rose 0.7% and fuel volumes rose 2.2%.
Asian indices traded lower as renewed concerns over AI spending triggered a selloff in technology shares and prompted investors to seek safer assets. The decline followed heavy losses in US technology stocks after quarterly results from Meta Platforms and Tesla failed to ease concerns about the costs and profitability of AI investments. Semiconductor stocks led the losses, while geopolitical tensions and higher oil prices added to uncertainty over inflation and global growth.
Japan's September inflation data also drew attention. Core consumer prices, excluding fresh food, rose 2.1% year on year, accelerating from 1.7% in August. An underlying measure that also excludes fuel increased 2.4%, compared with 1.9% in the previous month, strengthening the case for further monetary tightening by the Bank of Japan.
US stocks ended mixed on Thursday, October 22, 2026, as technology shares came under heavy selling pressure. The Dow Jones Industrial Average edged up 11.89 points, or 0.02%, to 52,867.98, while the S&P 500 fell 93.74 points, or 1.21%, to 7,663.43. The Nasdaq Composite dropped 694 points, or 2.6%, to 26,008.86, marking its steepest daily percentage decline since early June. The Philadelphia Semiconductor Index sank 6.7%, its biggest daily percentage drop since June 23.
Despite the technology-led selloff, most US stocks advanced, suggesting that losses were concentrated in high-growth shares. Investors also moved into US government bonds, pushing Treasury yields lower amid concerns over AI spending and economic growth.
Meta Platforms fell about 7% despite reporting third-quarter revenue above analysts' expectations. Investors focused on its rising AI-related expenditure and plans to issue non-voting shares to help finance its investments, renewing concerns about the capital requirements and potential returns of large-scale AI infrastructure spending.
Tesla declined 3.1% despite reporting positive free cash flow and lowering its projected 2026 capital expenditure to $20 billion from $25 billion. The revised spending outlook did little to ease investor concerns over growth prospects and the returns on future investments. Elsewhere, Spotify gained 11% after reporting higher revenue and an increase in premium subscribers, while Comcast advanced 3.4% after adjusted earnings per share exceeded expectations despite a decline in revenue.
US initial jobless claims fell by 6,000 to 194,000 in the week ended October 17, 2026, according to the US Department of Labor. The previous week's figure was revised upward to 200,000 from 199,000. The latest reading was below the market consensus of 200,000, indicating continued resilience in the labour market. Continuing claims, however, rose by 25,000 to 1.728 million in the week ended October 10.
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