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Macro EconomyMedium•22 October 2026•
2 min read

Sensex falls 0.62% as oil hits $112 and Indian stock losses broaden

Key Facts

1The Sensex fell 0.62% to 73,249.39 points, while the Nifty dropped 0.54% to 22,687.65 points.
2Oil reached $112 a barrel during the session as the Middle East war escalated.
3The small-cap index fell 1.1% and the mid-cap index declined 0.9%.
4September inflation accelerated to 5.54%, compared with expectations of 5.40% and a revised previous reading of 4.83%.
5The Reserve Bank of India raised its repo rate by 25 basis points to 5.5% in October.

Indian stocks closed lower on Thursday, 22 October 2026, as oil rose to $112 a barrel amid an escalating Middle East war, according to Reuters' closing market report. The Sensex fell 0.62% to 73,249.39 points amid inflation concerns as crude prices climbed. The Nifty dropped 0.54% to finish at 22,687.65 points. The market thus recorded its "third consecutive session" of losses, according to Reuters. Technology, energy and fast-moving consumer goods led percentage declines, with most major sector indexes falling.

Selling spread to smaller stocks, with the small-cap index falling 1.1% and the mid-cap index declining 0.9%, according to Reuters. Both indexes suffered larger losses than the Nifty and Sensex, reflecting broader selling beyond large companies. Among individual companies, HDFC Sky reported that airline IndiGo's shares fell 0.9%. Tyremaker MRF dropped 1.7% in the same session. In contrast, paintmaker Indigo Paints rose 1.2%, highlighting divergent company performances as oil prices climbed.

Regulatory developments weighed on consumer goods stocks alongside concerns over oil and inflation. Reuters linked declines in Nestle India, Abbott India and Zydus Wellness to notices they received from India's food safety regulator. The moves came during a session in which fast-moving consumer goods ranked among the worst-performing sectors. In financial services, Mahindra & Mahindra Financial Services fell after brokerages warned of pressures on the company, according to the agency. The warnings included "higher funding costs", alongside risks from insurance distribution reforms.

The pressure on equities comes as India's annual consumer price inflation accelerated to 5.54% in September, according to Investing.com calendar data. The reading exceeded expectations of 5.40% and rose from August's revised 4.83%. The Reserve Bank of India raised its repo rate by 25 basis points to 5.5% in its October decision, according to Reuters. The bank also raised its forecast for average inflation in the current fiscal year to 5.2%, from its previous estimate of 5%. On upcoming data, the Trading Economics calendar lists India's preliminary purchasing managers' index readings for 23 October 2026. The scheduled releases cover manufacturing, services and composite activity. These will be followed by October inflation data on 12 November 2026, according to the Investing.com calendar.