Indian stock market ends week lower on oil surge

The Indian stock market ended a difficult week lower, with the Nifty 50 down 546.15 points and the Sensex losing about 1,605 points in the week to 23 October 2026. The Indian stock market fell across most sectors as foreign investors kept selling and crude oil prices climbed. It was a short trading week, with markets shut on Tuesday, 20 October, for Dussehra.

The Nifty 50 closed the week at 22,600.00, down 2.36 per cent from 23,146.15 the previous Friday. The Sensex ended Friday at 73,123.83, down 125.56 points on the day and about 2.15 per cent over the week. The fall wiped about Rs 20.78 lakh crore off the value of all BSE-listed companies over the week, leaving the Indian stock market's combined market capitalisation at Rs 453.45 lakh crore.

Indian stock market: benchmarks fall

Friday was the fourth straight daily decline for the Sensex. The Nifty 50 lost 87.65 points on Friday to settle at 22,600.00. Market breadth was poor: across the exchange, 2,368 shares fell while 317 rose on Friday, and only 1 of the 100 stocks in the Nifty Midcap 100 rose that day. The weekly falls in the benchmarks were the steepest since February 2025, according to Business Standard.

The Bank Nifty fell 2.79 per cent over the week to 54,287.35, a drop of 1,556 points from its previous Friday close. Banking stocks in the Indian stock market struggled after mixed earnings reactions, with HDFC Bank, Axis Bank and Bajaj Finance each falling more than 5 per cent during the week. The information technology sector was relatively resilient, while chemicals, consumer durables, metals, realty and several cyclical sectors faced selling pressure.

Indian stock market: smallcap stocks hit hardest

The pain was much worse outside the benchmark indices, and smallcap stocks bore the brunt of it. The Nifty Smallcap 100 fell 7.27 per cent over the week, from 19,129.80 to 17,739.45, while the Nifty Smallcap 250 declined 7.10 per cent. The Nifty Midcap 100 fell 5.63 per cent, from 59,129.75 to 55,800.65, and the Nifty Midcap 150 lost 5.26 per cent. On Friday alone, the Nifty Smallcap 100 fell 2.94 per cent and the Nifty Midcap 100 fell 2.21 per cent.

When smaller companies fall much further than large-cap indices, it usually reflects a broad reduction in risk appetite rather than trouble in a few stocks. Smallcap stocks have now fallen far more than the benchmarks for two weeks in a row, and the market enters the new week with a cautious undertone. A sustained recovery will need better market breadth, steadier crude prices and signs that institutional selling is easing.

What drove the Indian stock market lower

Oil was the clearest pressure point for the Indian stock market during the week. Brent crude ended the week above $116 a barrel as fresh attacks in the Middle East brought supply fears back into the market. Higher crude added to worries about inflation, company margins and India's import bill. The metal sector was the worst performer on Friday, falling 2.71 per cent, and the realty index fell 2.38 per cent, with all 38 sectors closing in the red.

The week opened with one more up day on Friday, 16 October, when the Nifty added 0.65 per cent to 23,146.15. It then fell on all three remaining sessions. On Monday, 19 October, the Nifty lost 1.11 per cent to 22,888.95 and the Sensex fell 876 points to 73,852.90 as private banks sold off after HDFC Bank's results. Wednesday slipped 0.34 per cent to 22,811.35, and Thursday fell 0.54 per cent to 22,687.65, with the Sensex down 460 points to 73,249.39 for a third straight loss. Friday's fall to 22,600.00 closed the week.