Overview
- Markets reversed early gains on Monday, October 12, with the Sensex closing about 547.65 points lower at 71,924.68 and the Nifty ending at 22,363.35.
- Foreign institutional investors sold heavily, offloading roughly Rs 3,568.90 crore on Friday and continuing a string of October outflows that analysts say weakened sentiment.
- A jump in Brent crude toward $105–$106 raised worries about higher import bills and inflation, which together with rising US 10-year yields made foreign assets comparatively more attractive.
- The Reserve Bank of India acted to support the rupee by planning a Rs 25,000 crore bond sale and raising daily CRR maintenance, moves that absorb liquidity and increased pressure on banking stocks.
- Domestic mutual funds and record SIP flows are cushioning the fall, but analysts say upcoming September CPI/WPI prints and the September-quarter earnings season will determine whether the rebound can hold.