Indian stock markets opened higher on Friday, October 23, after three consecutive sessions of losses, supported by buying in information technology (IT) stocks. However, the initial recovery failed to hold as rising crude oil prices and escalating tensions in the Middle East weighed on investor sentiment.
At the opening, the Nifty 50 rose 0.16% to 22,726, while the BSE Sensex gained 0.53% to reach 73,634.08. The benchmarks had lost around 2% over the previous three sessions.
IT Stocks Lead Early Recovery
IT shares outperformed the broader market during early trading, with the sectoral index gaining around 3%. The buying came despite a sell-off in global technology stocks linked to concerns over heavy artificial intelligence spending.
Investors appeared to favour Indian IT companies as global technology shares weakened, providing temporary support to domestic benchmarks.
Rising Crude Oil Prices Remain a Concern
The recovery faced pressure from a sharp rise in international crude oil prices. Brent crude futures climbed above $113 per barrel amid concerns about energy supply disruptions following attacks linked to escalating Middle East tensions.
Higher oil prices are a concern for India because the country relies heavily on imported crude. Sustained increases can raise inflationary pressure, increase import costs and affect corporate profitability.
Markets Turn Volatile
The early gains proved short-lived as selling pressure returned. By the end of the session, the Sensex had fallen 0.39% to 72,964.13, while the Nifty 50 declined 0.70% to 22,529.15, marking a fourth consecutive session of losses.
Small-cap and mid-cap stocks also came under pressure, reflecting broader weakness beyond the benchmark indices.
What Investors Will Watch Next
Investors are likely to track crude oil prices, developments in the Middle East, global technology shares and corporate earnings for further direction. Continued volatility may remain a feature of the market as traders weigh opportunities in IT stocks against concerns about inflation and global economic uncertainty.
The session highlighted the fragile nature of the recovery, with gains in IT shares unable to offset broader concerns over expensive oil and geopolitical risks.