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Key gauges end lower amid geopolitical concerns
Oct-23-2026

Indian equity benchmarks erased most of their initial losses but ended in red terrain on Friday amid rising crude oil prices and escalating geopolitical tensions. Some concern also came as exchange data showed Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,458.70 crore on a net basis on Thursday.

Both Sensex and Nifty ended in red, but the indices showed a divergence in losses. Nifty unperformed Sensex with cut of over 0.40%, while Sensex lost around 0.20%. Weakness across sectors weighed on overall sentiment, with Metal, Realty and Capital Goods emerging among the major laggards.  

Some of the important factors in trade:

India's private sector business activity signals continued growth in October: According to the data report, the HSBC Flash India PMI Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - rose to 56.7 in October from final reading of 55.9 in September, pointing to a marked monthly expansion of business activity and one that was the fastest since June. 

India provides stable, predictable business environment to global investors: Commerce and Industry Minister Piyush Goyal has assured global investors that India provides a stable and predictable business environment and emphasised that businesses investing and expanding in the country would not face the uncertainties seen in other parts of the world. 

European companies express keen interest in investing in India: Commerce and Industry Minister Piyush Goyal has noted that several European companies have expressed keen interest in investing in India, with many carmakers exploring manufacturing opportunities in the country. 

Shipping minister urges Polish companies to build, innovate and invest in India: Union Minister of Ports, Shipping & Waterways (MoPSW) Sarbananda Sonowal urged Polish companies to ‘build, innovate and invest in India’ rather than only sell to it, as he pitched the country's growth story to business leaders from both nations. 

Global front: European markets were trading lower amid renewed concerns about France's finances, continued Houthi attacks in Saudi Arabia, and doubts over whether hyperscalers' massive AI investments will yield adequate returns. Asian markets ended mostly higher despite concerns over technology valuations and escalating Houthi attacks in Saudi Arabia. 

Finally, the BSE Sensex fell 125.56 points or 0.17% to 73,123.83 and the CNX Nifty was down by 87.65 points or 0.39% to 22,600.00. 

The BSE Sensex touched high and low of 73,766.51 and 72,452.37, respectively. There were 10 stocks advancing against 20 stocks declining on the index. 

The top losing sectoral indices on the BSE were Metal down by 2.71%, Realty down by 2.63%, Capital Goods down by 2.51%, Utilities down by 2.30% and Power down by 2.11%, while there was no gaining sectoral index on the BSE. 

The top gainers on the Sensex were Eternal up by 3.98%, Larsen & Toubro up by 1.04%, TCS up by 0.94%, Reliance Industries up by 0.79% and Axis Bank up by 0.37%. On the flip side, Tata Steel down by 3.24%, Adani Ports &SEZ down by 2.75%, Interglobe Aviation down by 2.47%, Titan Company down by 2.20% and Bharat Electronics down by 2.18% were the top losers.

Meanwhile, India's private sector business activity signalled continued growth in October 2026, supported by stronger new orders and easing inflationary pressures. According to the data report, the HSBC Flash India PMI Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - rose to 56.7 in October from final reading of 55.9 in September, pointing to a marked monthly expansion of business activity and one that was the fastest since June.

As per the report, improving market conditions and greater new order volumes supported the rise in output. The rate of expansion in new business also quickened in October, with total new orders supported by the fastest rise in new business from abroad in six months. Despite the sharper rises in output and new orders, companies in India were more cautious around hiring decisions in October. In fact, employment increased only marginally and at the slowest pace in the year-to-date. Services staffing levels were unchanged, ending a nine-month sequence of job creation, while manufacturing workforce numbers rose slightly. 

The slowdown in job creation in the manufacturing sector caused the HSBC Flash India Manufacturing PMI to tick down to 54.9 in October from 55.1 in September. However, HSBC Flash India Services PMI Business Activity Index rose to 56.2 in October from September’s final reading of 55.2. Looking to the future, companies in India remained optimistic that business activity will increase over the coming year amid expectations that market conditions will continue to strengthen. Business confidence improved to the highest since May, but was still below the average seen during 2026 so far. Optimism strengthened across both manufacturing and services.

CNX Nifty touched high and low of 22,787.25 and 22,372.00, respectively. There were 14 stocks advancing against 36 stocks declining on the index. 

The top gainers on Nifty were Eternal up by 4.25%, Apollo Hospital up by 1.65%, ONGC up by 1.11%, Asian Paints up by 0.97% and TCS up by 0.92%. On the flip side, Shriram Finance down by 3.98%, Adani Enterprises down by 2.86%, JSW Steel down by 2.83%, JIO Financial Services down by 2.74% and Adani Ports and SEZ down by 2.70% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 62.71 points or 0.59% to 10,662.32, France’s CAC fell 55.56 points or 0.72% to 7,755.70 and Germany’s DAX lost 207.65 points or 0.82% to 25,164.10.

Asian markets ended mostly higher on Friday, with South Korea’s Kospi, Hong Kong and Chinese indices recovering from an early slide as bargain hunters stepped in to buy heavily discounted technology and semiconductor shares. However, Japanese markets dropped as investors shifted from high-performing tech and artificial intelligence shares into safe-haven government bonds. Further, market participants remain cautious due to escalating tensions in the Middle East, following reports that the US and Israel had prepared plans for possible renewed strikes against Iran after next month’s midterm elections. Taiwan's markets were closed as Typhoon Champi approached. Traders also shifted their focus on the upcoming Federal Reserve meeting scheduled for October 27-28, 2026, at the conclusion of which the Fed is expected to announce its interest rate decision.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,690.48

32.45

0.89

Hang Seng

23,093.37

158.69

0.69

Jakarta Composite

5,439.26

51.35

0.95

KLSE Composite

1,611.56

3.42

0.21

Nikkei 225

62,693.16

-214.68

-0.34

Straits Times

5,422.16

7.02

0.13

KOSPI Composite

5,550.30

16.53

0.30

Taiwan Weighted

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