The Sensex fell 143.21 points to 73,709.69 and the Nifty 50 lost 77.60 points to 22,811.35 on October 21, after early gains on optimism over India-US trade negotiations.

The reversal shows which force was stronger. Brent crude rose 1.31% to 110.15 dollars a barrel and foreign investors kept selling, which, in the words of Geojit’s Vinod Nair, outweighed the trade news.

There were supports. Improving second-quarter earnings and buying by domestic institutions helped, and the Nifty IT index rose 2.52%, while PL Capital’s Vikram Kasat said elevated crude could keep markets volatile.

The trade talks, crude and foreign flows are what investors will watch next.

The Nifty Auto index fell 1.99%, Nifty Metal fell 1.97%, Nifty Realty fell 1.57%, Nifty Media fell 1.24% and Nifty Private Bank fell 1.16%, according to the same report.

Liquide reported that the Bank Nifty fell 0.92% to 54,976.90.

Brent crude rose 1.31% to 110.15 dollars a barrel, according to Free Press Journal.

Higher crude prices raised concerns about India’s import costs, inflation, corporate profit margins and rupee volatility, according to the same report.

Continued selling by foreign institutional investors weighed on sentiment, according to Free Press Journal.

Vinod Nair of Geojit Investments said high crude and foreign investor selling outweighed the trade news, while improving second-quarter earnings and buying by domestic institutions provided support.

Vikram Kasat of PL Capital said elevated crude prices could keep markets volatile.

These are the views of the analysts quoted and are not forecasts by this website.

Twenty-four carat gold fell 0.49% to Rs 1,45,803 per 10 grams and silver fell 1.15% to Rs 2,09,061 per kilogram, according to Free Press Journal.

Investors are watching geopolitical tensions, the India-US trade talks, foreign fund flows and second-quarter earnings, according to the same report.

US Secretary of State Marco Rubio said that only a small number of items remain unresolved in the India-US trade agreement talks, according to Business Today.

Dalal Street, Mumbai (file image), Wikimedia Commons, CC BY-SA 3.0