The Nifty index extended its losing streak to four sessions on Friday, closing at 22,600 after shedding 87 points. The index initially rose 55 points but reversed course, falling over 400 points from its intraday high before recovering more than 200 points during the Closing Auction Session. The broader market saw more significant declines, with the Nifty Midcap 100 and Nifty Smallcap 100 falling 5.6% and over 7%, respectively, marking the steepest weekly drop for smallcaps since February 2025.
All sectoral indices ended lower, with Metal, Consumer Durables, and Realty leading the losses. Among the Nifty 50 stocks, Eternal, Apollo Hospitals, and ONGC were among the few gainers, while Shriram Finance, Adani Enterprises, and JSW Steel led the declines. The rupee weakened for a second consecutive session, falling 12 paise to close at 94.94 against the US dollar, pressured by rising crude oil prices and a stronger dollar.
Market volatility is expected to continue, with crude oil prices and geopolitical tensions in focus. Crude oil rose above $114 a barrel, touching a five-month high amid concerns over potential supply disruptions in the Middle East. Escalating US-Iran tensions and risks to Saudi oil infrastructure have heightened concerns about a wider conflict, which could further disrupt supplies and push energy prices higher.
Investors will also monitor global monetary policy developments, including the US Federal Reserve's policy meeting on October 27-28 and the Bank of Japan's interest rate decision. Domestic focus will remain on the Q2 earnings season, with several major companies set to report results next week. Additionally, Jio Platforms' record IPO, which closed for subscription on Friday, will be listed on October 28, adding to market sentiment.