Indian stock markets fell for the third straight day on October 22 as foreign institutional investors pulled out Rs 3,459 crore. Domestic investors attempted to support the market with Rs 2,891 crore in purchases, but concerns over rising crude oil prices and potential interest rate hikes kept selling pressure high across all market segments.
Indian equity markets remained under pressure on October 22, marking a third consecutive day of losses. Foreign institutional investors (FIIs) net sold Indian shares worth Rs 3,458.70 crore. This heavy selling outweighed the support from domestic institutional investors (DIIs), who purchased a net Rs 2,891.32 crore during the session.
The Nifty 50 declined by 123.70 points, or 0.54%, to close at 22,687.65. The BSE Sensex fell 460.30 points, or 0.62%, settling at 73,249.39. The weakness was broad-based, as investors moved away from smaller companies, with the Nifty Midcap 100 falling 0.87% and the Nifty Smallcap 100 sliding 1.14%.
Selling was visible across most sectors. The Nifty IT index dropped 1% amid profit-booking and caution ahead of upcoming US Federal Reserve policy updates. The Nifty FMCG index fell 1.4%, largely driven by a 2% decline in Nestle India shares following regulatory questions about the company's marketing claims.
Market participants are keeping a close watch on external macroeconomic challenges. Brent crude oil prices have reached $111 per barrel, raising concerns about higher energy costs and inflation. These pressures were highlighted in the latest minutes from the Reserve Bank of India’s (RBI) Monetary Policy Committee. The central bank's notes suggest that if inflationary pressure broadens, the economy could see cumulative repo rate hikes of up to 100 basis points in the current cycle.
Investors will likely track crude oil price movements, global geopolitical developments, and upcoming central bank commentary to gauge the direction of the market in the coming sessions.