Indian markets erase early rally, close lower as crude oil weighs
What Happened
Indian equities reversed strong morning gains on October 21. The Sensex closed 143.21 points, or 0.19%, lower at 73,709.69, while the Nifty 50 fell 77.60 points, or 0.34%, to 22,811.35. The reversal was sharp. The Sensex fell more than 1,300 points from its intraday high, while broader markets suffered heavier selling, with the Nifty Midcap index down nearly 2% and Smallcap around 2.4%. Higher crude prices, with Brent above $110 a barrel, and continued foreign-investor selling weighed on sentiment. IT stocks bucked the trend, with Infosys, Tech Mahindra and TCS among the stronger performers.
Key Takeaways
The strong opening failed to hold as high crude prices and selling pressure overwhelmed the IT-led gains, leaving both benchmarks lower for the day.