Sensex sheds 460 points, Nifty ends near 22,690 as Brent tops $110 after strike near Saudi oilfield

Indian equity benchmarks closed lower on Thursday, 22 October, as a spike in crude oil prices following new attacks in the Gulf weighed on investor sentiment.

The BSE Sensex fell 460.30 points, or 0.62 per cent, to end at 73,249.39, while the NSE Nifty 50 lost 123.70 points, or 0.54 per cent, to settle at 22,687.65, according to Business Standard and Kotak Neo. Smaller companies fared worse, with the Nifty Midcap 100 down 0.87 per cent and the Nifty Smallcap 100 down more than 1 per cent.

Oil in focus

The trigger was another jump in oil prices. Brent crude traded above 110 US dollars a barrel on Thursday, The National reported, after a Houthi drone was intercepted near a processing plant at Saudi Arabia's Shaybah oilfield on Wednesday. Saudi authorities said debris struck a contractor's vehicle, killing two people, but that operations were not affected. Kotak Neo put Brent December futures at around 111.71 dollars in the afternoon.

Separately, Iran's Revolutionary Guard navy said seven vessels had been hit in the northern Gulf and near the Strait of Hormuz, and warned the US of a wider response, Reuters reported. Together, the developments added to fears about supplies from the region.

Sectors and stocks

Information technology, FMCG and media stocks were among the weakest sectors, while pharmaceuticals held up better, according to Business Standard. Nestle India, Eternal and HDFC Life were among the Nifty's notable decliners, Kotak Neo said, while Bajaj Finance, Cipla and UltraTech Cement were among the few gainers.

Why it matters for India

India imports most of the crude oil it uses, so sustained prices above 100 dollars a barrel raise the risk of higher fuel costs, a wider import bill and pressure on inflation. Market watchers expect trading to stay cautious while tensions in West Asia persist.