Sensex, Nifty end lower for third day: Elevated crude, weak market breadth weigh on D-Street

The equity benchmark indices BSE Sensex and NSE Nifty fell for the third consecutive session on Thursday (October 22) as elevated crude oil prices kept markets under pressure, with Brent crude trading above $112 per barrel.

The Nifty 50 slipped below the 22,700 mark and its 20-day moving average (20-DMA), while the broader market continued to underperform, with the midcap index hitting a six-month low.

The Sensex fell 460 points, or around 0.6%, to close at 73,249, while the Nifty declined 124 points to settle at 22,688. The Nifty Bank slipped 51 points to 54,926, while the midcap index dropped 502 points to end at 57,064.

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Market breadth remained firmly in favour of declines, with the advance-decline ratio at 1:3. As many as 38 Nifty stocks ended the session in the red.

What Drove The Market Lower?

1. Elevated crude oil prices

Brent crude trading above $112 per barrel remained a key pressure point for the market, with elevated oil prices keeping sentiment under pressure.

2. Weakness in the broader market

The broader market continued to underperform the benchmark indices, with the midcap index falling 502 points to hit a six-month low at 57,064.

3. Negative market breadth

Declines outnumbered advances by a ratio of 3:1, indicating widespread weakness across stocks. As many as 38 Nifty constituents closed lower.

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4. Nifty slips below 20-DMA

The Nifty closed below its 20-day moving average, adding to the weakness after the benchmark index fell for the third consecutive session.

Eternal failed to sustain its opening gains and ended 3% lower. Swiggy also closed in the red. Nestle extended its losses, falling 3% on Thursday and 6% for the week.

Bajaj Finance witnessed buying at lower levels, recovering 4% from its intraday lows to finish as the top Nifty gainer. UltraTech Cement extended Wednesday's gains following positive commentary, rising 1%.

KEI Industries fell 8% after the company's cautious outlook on margins weighed on the stock. Oracle Financial Services Software slipped 4%, while Hindustan Petroleum Corporation Ltd (HPCL) also came under pressure ahead of its earnings.

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SRF ended 1% higher after recovering 7% from its intraday lows following positive commentary. Indian Hotels Company closed 4% higher after reporting a second-quarter beat, while PB Fintech staged a sharp intraday recovery to finish with a 3% gain.

From the Sensex basket, Bajaj Finance Ltd, Cipla Ltd, UltraTech Cement Ltd, ICICI Bank Ltd, Larsen & Toubro Ltd and Hindustan Aeronautics Ltd were the major gainers.

Nestle India Ltd, Trent Ltd, Power Grid Corporation of India Ltd, Coal India Ltd, Asian Paints Ltd and Shriram Finance Ltd were the biggest laggards.