Indian Benchmarks Extend Losses for Third Session as Crude Prices Surge, FIIs Sell
Elevated crude oil prices and persistent foreign institutional selling continue to weigh on sentiment, despite domestic institutional support.
The story
Indian equity benchmarks continued their downward trend on Thursday, October 22, extending losses for a third consecutive session. The Sensex fell 460.30 points, or 0.62%, to settle at 73,249.39, while the Nifty 50 declined 123.70 points, or 0.54%, to close at 22,687.65.
This broader market weakness was largely driven by surging crude oil prices, with Brent crude rising above $112-$113 per barrel amid escalating geopolitical tensions in the Middle East. Foreign institutional investors (FIIs) remained net sellers, offloading equities worth ₹3,458.7 crore on October 22.
However, domestic institutional investors (DIIs) provided a cushion by registering net purchases of ₹2,891.3 crore on the same day. Sectoral performance on October 22 was largely negative, with Nifty FMCG, Smallcap, and IT indices seeing declines, though Nifty Pharma and PSU Bank managed marginal gains.
The tape
| Instrument | Last | Change |
|---|---|---|
| Nifty 50 | 22,687.65 | -123.70 (-0.54%) |
| Sensex | 73,249.39 | -460.30 (-0.62%) |
| India VIX | 15.76 | Elevated |
| USD/INR | 94.82 | +0.44 (0.47%) |
| India 10Y yield | 7.4596% | +0.0069 (0.09%) |
Flows & data
| Item | Reading | Read |
|---|---|---|
| FII Net Flows | -₹3,458.70 Cr (Oct 22, 2026) | Foreign institutional investors were net sellers in the cash market. |
| DII Net Flows | +₹2,891.32 Cr (Oct 22, 2026) | Domestic institutional investors were net buyers in the cash market. |
IPOs & the primary market
The primary market saw several listings and ongoing IPOs this week. On October 22, Tonbo Imaging India listed with a 65.71% gain at ₹1,160.00 against an issue price of ₹700.00.
Sahajanand Medical Technologies saw a 7.89% gain, listing at ₹371.15, while Zetwerk Manufacturing Business gained 5.46% to list at ₹159.25. Shellz India and Bonfiglioli Transmissions listed flat.
The Jio Platforms mainboard IPO, which opened on October 20, is closing today, October 23, having been subscribed 7.43 times overall. Paras Healthcare's IPO also closes today, with an overall subscription of 0.54 times.
The SME IPO of Core4 Engineer opened on October 22 and has been subscribed 0.04 times so far. Grey Market Premiums (GMP) for some upcoming issues indicated strong demand, with Tonbo Imaging India showing a GMP of ₹512 (73.14%) and Jio Platforms at ₹246 (21.98%) as of October 22.
Valuation watch — India & global
The Nifty IPO PE ratio stood at 98.01 as of October 19, 2026, which is approximately 67% above its one-year median of 58.85, indicating that the index is in a significantly overvalued territory on a historical basis. This elevated valuation in the primary market, alongside broader market resilience driven more by liquidity than earnings, suggests a cautious environment.
The Nifty 50's trailing P/E ratio was 21.19 and its CAPE ratio was 28.67 as of September 2026. Analysts note that strong external headwinds like elevated crude prices and high US bond yields are contributing to market declines, even on days of positive institutional buying.
What we'll be watching
- Jio Platforms IPO listing on October 28, 2026.
- Paras Healthcare IPO listing on October 28, 2026.
- Core4 Engineers SME IPO listing on October 30, 2026.
- EAAA India Alternatives mainboard IPO opens October 26-28, 2026.
- SFC Environmental Technologies mainboard IPO opens October 27-29, 2026.
- BLS Polymers mainboard IPO opens October 27-29, 2026.
Reporting + analyst voices: grounded via Google Search at publish time.