Mumbai (Maharashtra) [India], October 23 (ANI): The domestic stock market continued its downward trend on Friday, with benchmark indices Sensex and Nifty 50 closing in the red amid selling pressure across sectors, rising crude oil prices and weak global cues.

The NIFTY 50 index closed at 22,600, declining 87.65 points or 0.39 per cent, while the BSE SENSEX settled at 73,123.83, down 125.56 points or 0.17 per cent.

Vinod Nair, Head of Research at Geojit Investments, said the sharp correction in mid- and small-cap stocks compared with the Nifty remained a key concern for the market.

'The key concern in today's market is the disproportionately sharp correction in mid- and small-caps relative to the Nifty. Valuation concerns and unwinding of leveraged positions, combined with surging crude prices and weak global cues, have intensified pressure on the broader market,' Nair said.

He added that the rise in India VIX indicated that near-term volatility could persist. Continued tensions in the Middle East could keep crude prices elevated, while the global equity sell-off led by concerns around artificial intelligence continued to weigh on investor risk appetite.

Looking ahead, Nair said inflation trends and the response of major central banks in balancing inflation and growth would be critical for market direction. He added that stock- and sector-specific opportunities were likely to dominate, with earnings visibility and valuations emerging as key factors for investors.

On the National Stock Exchange, almost all sectoral indices ended lower. Nifty Metal was the worst performer, falling 2.98 per cent, followed by Nifty Consumer Durables, which declined 2.93 per cent.

Nifty PSU Bank fell 2.52 per cent, while Nifty FMCG and Nifty Pharma each declined 1.46 per cent. Nifty Private Bank lost 1.13 per cent, Nifty Media fell 1.12 per cent, Nifty Auto declined 0.90 per cent and Nifty IT slipped 0.33 per cent.

Among the NIFTY 50 constituents, Eternal, Apollo Hospitals, Asian Paints, TCS, UltraTech Cement and Maruti were among the top gainers. Shriram Finance, Adani Enterprises, JSW Steel, Jio Finance, Tata Steel, Adani Ports and TMPV were among the top losers.

Crude oil prices added to market concerns, with Brent crude gaining 1 per cent to USD 114.31 per barrel at the time of reporting.

Rajeev Sharan, Head of Research at Brickwork Ratings, said the rupee traded in a narrow band during the session, opening 3 paise firmer at 94.78 before weakening towards 95.15 against the dollar by the afternoon.

'The rupee held in a narrow band on Friday, opening 3 paise firmer at 94.78 before softening toward 95.15 to the dollar by afternoon,' Sharan said.

He said rising Brent crude prices amid Middle East tanker strikes were putting pressure on the rupee through India's oil import bill. At the same time, the energy shock was reviving global inflation concerns, pushing up US bond yields and weighing on gold prices.

Sharan said the rupee could face resistance around 95.30 as long as oil prices remained elevated. He added that gold could find support near current levels as Dhanteras demand absorbed the temporary decline.

Gold prices fell 0.31 per cent to Rs 1,42,871 per 10 grams for 24-carat gold, while silver declined 1.84 per cent to Rs 1,95,927 per kg at the time of reporting.

In other Asian markets, Japan's Nikkei 225 was the only major index among those listed to close lower, declining 0.51 per cent to 62,587. Singapore's Straits Times gained 0.13 per cent to 5,422, while Hong Kong's Hang Seng rose 0.73 per cent to close at 23,104. South Korea's KOSPI advanced 0.30 per cent to 5,550. Taiwan's weighted index remained closed for a holiday. (ANI)