Overview
- Benchmarks opened lower on Monday and extended a four‑session slide that left the Nifty down about 2.4% and the Sensex down about 2.2% for the week.
- Brent crude hit near six‑month highs around $116.72 last Friday after supply‑risk incidents in West Asia and was trading above $114 on Monday, keeping inflation concerns alive.
- Mid‑cap and small‑cap stocks took the brunt of the selling as investors cut leveraged positions and foreign portfolio investors recorded large net outflows in October.
- The near‑term market direction will be driven by the US Federal Reserve decision, a heavy corporate earnings slate and the high‑profile Jio Platforms listing scheduled for October 28.
- If crude stays elevated, India’s larger oil import bill could lift consumer inflation, squeeze corporate margins and weaken the rupee, which would likely sustain pressure on equity flows and valuations.