Indian equities ended a two-week winning run, closing sharply lower in the short week that ended October 23, as a surge in crude oil prices and steady foreign selling kept investors on edge. The Nifty 50 shed 2.36 percent or 546.15 points to end at 22,600.
The damage was widespread, with 43 of the 50 Nifty stocks ending lower and only seven closing positive. The market capitalisation of BSE-listed companies fell by more than Rs 20 lakh crore over the five sessions.
The broader market lost more than the benchmark indices, with the Nifty Midcap 100 index shedding 5.6 percent and the Nifty Smallcap 100 index losing nearly 7.3 percent. Sectorally, the Nifty Defence index plunged about 7 percent, and the Nifty Consumer Durables index fell 6.4 percent. The Nifty Capital Markets index declined 6 percent, while the Nifty Metal, Media and Realty indices each gave up roughly 5 percent. Nifty IT stood out as the only gainer, edging up a marginal 0.2 percent.
A large part of the fall was due to crude oil shooting up. Brent rose almost 7 percent, climbing from $109.65 per barrel on Monday to a high of $117.45 on Friday. Prices reacted to escalating tensions in the Middle East with fears of fresh attacks by US forces on Iran after its midterm elections.
Meanwhile, US President Donald Trump waived key sanctions and tariffs on Russia, potentially allowing more Russian fuel exports. The move followed a deal with President Vladimir Putin to export diesel to the US.