On Monday, October 12, the Indian equity market closed in the red, with the S&P BSE SENSEX settling at 71,924.68, a decline of 547.65 points or 0.76%. The NSE NIFTY50 index fell 157.1 points, or 0.7%, to finish at 22,363.35. The downturn was largely driven by a slide in banking shares, which dragged the sectoral benchmark index lower as investors reacted to the Reserve Bank of India’s latest liquidity‑tightening measures announced over the weekend. The RBI’s actions were aimed at curbing excess liquidity amid rising inflation concerns.

Global crude oil prices surged above $105 per barrel on Monday, following a rebound from the previous evening’s $103.55 peak. Energy prices rose as the market anticipated continued tightening in global supply chains. The rise in oil prices contributed to a broader sell‑off in Asian equities, with most regional indices posting losses. Japan’s Nikkei slipped marginally by 0.02%, China’s Shanghai Composite fell 0.44%, and South Korea’s Kospi tumbled 3.79%, while Hong Kong’s Hang Seng index rose slightly by 0.04%.

The banking sector suffered a sharp decline, with the NIFTY PSU Bank index falling 1.18% and the NIFTY Private Bank index down 0.37%. The sectoral losses were compounded by a 1.67% drop in the NIFTY FMCG index and a 0.79% fall in the NIFTY IT index. In contrast, the NIFTY Media sector gained 4.6%, the NIFTY Auto sector rose 0.9%, the NIFTY Realty sector increased 0.76%, and the NIFTY Pharma sector climbed 0.45%. These gains were insufficient to offset the broader market decline.

On the NIFTY50, 36 stocks closed in the red while 13 advanced. The biggest laggards included Apollo Hospitals (-3.15%), ITC (-3.05%), Tech Mahindra (-2.85%), Larsen & Toubro (-2.05%) and Max Healthcare Institute (-2.02%). Among the top gainers were Dr. Reddy's Laboratories (2.71%), Bajaj Auto (2.62%), Tata Motors PV (1.63%), Bharat Electronics (1.56%) and BSE (1.31%). The market capitalisation of NSE‑listed firms stood at ₹461.1 lakh crore at the close of the session.

The NSE saw 3,706 stocks traded on Monday, with 1,795 advancing, 1,798 declining, and 113 remaining unchanged. A total of 76 stocks hit their 52‑week highs, while 140 touched their one‑year lows. Additionally, 124 stocks reached their upper circuit limits and 104 touched lower circuit bands. The India VIX, the volatility gauge, stood at 15.24, up 5.98% from the previous close, reflecting heightened market uncertainty.

Foreign portfolio investors withdrew ₹44,166 crore from Indian equities in October, bringing the total outflows this year to more than ₹3 lakh crore. The RBI’s liquidity‑tightening stance, combined with global oil price gains and earnings season expectations, contributed to the market’s cautious tone. Despite these headwinds, the Nifty Midcap 100 index rose 0.08% to 58,834.55, and the Nifty Smallcap 100 surged 1.42% to 19,425.80, indicating that smaller‑cap stocks outperformed the broader market during the session.