Stock Market Today: The Sensex and Nifty 50 opened lower on Thursday, October 22, extending their losing streak to a third consecutive session as escalating geopolitical tensions in the Middle East pushed crude oil prices higher and revived concerns over inflation. With traders also navigating global technology stock volatility, the Sensex expiry session could see heightened swings around crucial technical levels.
At 9:15 am, the Sensex fell 0.5% to 73,343.3, while the Nifty 50 declined 0.54% to 22,687.75. Brent crude futures rose 1.6% to $110.6 per barrel after attacks by Yemen's Houthis in Saudi Arabia prompted the US to order some diplomats and their families to leave its missions in the kingdom.
Brent crude has surged more than 80% this year amid disruptions to Persian Gulf oil flows caused by the US-Iran war. Higher crude prices pose a significant risk to India, one of the world's largest oil importers, by potentially increasing inflationary pressures and corporate costs.
Asian equities also weakened as mixed earnings from major US technology companies renewed concerns about the sustainability of artificial intelligence-related investments. South Korea's Kospi fell around 2%, while Japan's Nikkei 225 declined nearly 1%, adding to the cautious global backdrop for Indian equities.
The fall in Indian equities came on Sensex weekly expiry day, a session that can see heightened volatility as traders adjust or close their index derivatives positions. Sensex weekly expiry is the day when weekly Sensex derivatives contracts, such as futures and options, expire and are settled.