Last Updated on October 28, 2026 10:27 pm by INDIAN AWAAZ
By Our Business Correspondent
Indian equity benchmarks closed lower for a second consecutive session on Wednesday as elevated crude oil prices and losses in heavyweight information technology and oil-related stocks weighed on investor sentiment. Caution ahead of the US Federal Reserve’s monetary policy decision also kept investors on the defensive, although gains in mid-cap and small-cap shares indicated continued buying interest beyond the frontline indices.
The BSE Sensex declined 352.64 points, or 0.48%, to settle at 73,246.03, while the NSE Nifty 50 fell 50.90 points, or 0.22%, to close at 22,698.85, below the psychologically important 22,700 mark. The two benchmarks have now lost 0.49% and 0.24%, respectively, over the past two trading sessions.
Selling in Infosys, Reliance Industries and Bharti Airtel accounted for a significant part of the pressure on the Nifty. Infosys fell 3.43%, Reliance Industries declined 3.19%, and Bharti Airtel shed 1.55%.
The decline in the benchmark indices, however, did not translate into uniform weakness across the market. Mid-cap and small-cap stocks outperformed the frontline indices, while buying in automobile and consumer durables shares helped cushion the impact of losses elsewhere.
Crude oil and Fed decision weigh on sentiment
Brent crude futures for December delivery rose $1.24, or 1.09%, to $115.12 a barrel, intensifying concerns about imported inflation and the potential implications for India’s economic outlook.
Higher oil prices are a particular concern for India because of its substantial dependence on imported crude. A sustained rise in energy costs can increase the import bill, put pressure on the rupee, raise transportation and production expenses and complicate the inflation outlook. It can also affect corporate profitability, particularly in sectors that cannot immediately pass on higher input costs to consumers.
Investors were also awaiting the US Federal Reserve’s policy announcement later on Wednesday. Although markets widely expected interest rates to remain unchanged, the accompanying guidance was seen as important for assessing the direction of global borrowing costs and financial flows.
The US monetary policy outlook matters for Indian equities because changes in Treasury yields and expectations for the dollar can influence foreign portfolio investment, currency movements and valuations of emerging-market assets. A more cautious assessment of inflation could limit expectations of future rate reductions, while any indication of easing price pressures could improve risk appetite.
The combination of expensive crude and uncertainty over the Fed’s next steps encouraged investors to remain selective rather than make aggressive commitments to large-cap stocks.
IT and oil-related shares lead losses
Information technology shares were among the principal drags on the market. Infosys’ 3.43% decline placed it among the biggest Nifty losers, reflecting weakness in a heavyweight sector closely linked to demand conditions in the United States and other overseas markets.
Investors have been monitoring global technology spending, corporate earnings and the implications of artificial intelligence-related investment for traditional IT services. The latest earnings season has also increased the importance of company-specific guidance on demand, margins and new business opportunities.
Oil and gas stocks also came under pressure as crude prices remained elevated. The effect of rising oil prices varies across the energy industry: upstream producers may benefit from stronger realisations, whereas refiners, fuel retailers and companies exposed to higher feedstock or operating costs can face margin pressures, depending on pricing arrangements and government policy.
Reliance Industries, which has significant weight in the benchmark indices and businesses spanning energy, retail and telecommunications, declined 3.19%. Bharti Airtel fell 1.55%, adding to the pressure on the frontline gauges.
Despite the benchmark decline, automobile and consumer durables shares advanced. Such gains suggested that investors were continuing to identify opportunities in selected domestic-demand-oriented businesses rather than selling indiscriminately across sectors.
Broader markets outperform benchmarks
The broader market displayed relative resilience. The BSE 150 MidCap Index advanced 0.51%, while the BSE 250 SmallCap Index gained 0.37%.
The divergence between the benchmarks and broader indices suggested that selling pressure was concentrated in selected large-cap stocks. However, one session of outperformance does not necessarily establish a durable recovery in mid-cap and small-cap shares, where valuations and liquidity conditions can magnify price movements.
Market breadth on the BSE was positive, with 2,245 shares advancing, 2,079 declining and 241 remaining unchanged. The India VIX, which measures the market’s near-term expectation of volatility, eased 0.28% to 16.36.
The decline in the volatility index offered a limited counterpoint to the fall in the benchmarks. Nevertheless, investors remained exposed to changes in oil prices, global bond yields, currency movements and the interpretation of the Fed’s policy guidance.
Corporate earnings provide stock-specific support
Quarterly earnings remained a major driver of individual share movements. Larsen & Toubro rose 3.72% after reporting a strong increase in consolidated profit and revenue for the September quarter of FY27. Consolidated net profit increased approximately 33% year on year to Rs 5,202 crore, while revenue from operations rose 15.84% to Rs 78,749.94 crore.
The engineering and construction major reported international revenue of Rs 45,870 crore, accounting for 58% of total revenue. Its consolidated order book stood at Rs 8,53,514 crore as of September 30, up 15% from March 2026, with international orders contributing 54%. The figures highlighted the importance of overseas projects to the company’s growth and order visibility.
Vedanta gained 3.30% after reporting a sharp improvement in its September-quarter financial performance. Consolidated net profit from continuing operations rose 151% year on year to Rs 6,202 crore, while revenue increased 57% to a record Rs 25,812 crore. The company also reported lower net debt, adding to the positive operating picture.
Hindustan Unilever slipped 0.12% despite reporting a 3.91% increase in consolidated net profit to Rs 2,790 crore and a 14.78% rise in revenue from operations to Rs 18,037 crore. Underlying sales growth stood at 15%, with underlying volume growth at 7%. The board declared an interim dividend of Rs 19 per share, with November 12 fixed as the record date.
Syngene International surged 12.19% after returning to profitability on a sequential basis, reporting net profit of Rs 32 crore against a loss of Rs 9 crore in the preceding quarter. However, profit remained 52% lower year on year, while revenue declined 9% to Rs 833 crore. The share-price response indicated that investors were focusing on the sequential improvement, despite the weaker annual comparison.
Bajaj Auto advanced 0.91% after standalone net profit increased 35.25% year on year to Rs 3,353.76 crore. Revenue from operations rose 34.05% to Rs 20,003.43 crore.
PG Electroplast gained 7.16% after reporting a 395.2% increase in consolidated net profit to Rs 13.67 crore, while sales rose 42.5% to Rs 933.88 crore. United Breweries advanced 4.72% following a 190% rise in standalone net profit to Rs 136 crore and a 24% increase in net sales to Rs 2,536 crore.
Global markets remain focused on technology and interest rates
Asian equities mostly advanced as optimism over artificial intelligence demand supported technology shares ahead of major US technology-company earnings. South Korean chipmaker SK Hynix reported record third-quarter revenue of 104.62 trillion won and operating profit of 83.33 trillion won, driven by demand for high-bandwidth memory and other products used in AI infrastructure.
The company’s third-quarter results reinforced the importance of AI-related investment to the semiconductor industry, although the sustainability of exceptionally strong earnings and the scale of future investment remain important considerations for investors.
US markets had closed higher on Tuesday. The Dow Jones Industrial Average gained 15.99 points, or 0.03%, to 52,377.57; the S&P 500 advanced 0.60% to 7,722.60; and the Nasdaq Composite rose 1.18% to 26,477.81.
Broadcom attracted attention after announcing a $63 billion financing arrangement involving major financial institutions to support AI computing capacity for Anthropic. Investors were also awaiting results from Alphabet and Microsoft after the US market close.
Economic data offered a mixed picture. The Conference Board’s US Consumer Confidence Index increased to 91.7 in October from a revised 84.2 in September, exceeding the cited Reuters poll forecast of 81. Durable goods orders rose 1.8% in September, below the cited 2% forecast, while new single-family home sales fell 0.6% to an annualised rate of 676,000 units.
European shares declined as investors assessed corporate earnings, elevated energy prices and the outlook for monetary policy. The European Central Bank’s decision, scheduled for Thursday, October 29, was another event on the international calendar.
Bonds and currency remain in focus
India’s 10-year government bond yield rose to 7.442% from 7.435% in the previous session. In the currency market, the rupee ended weaker at around 95.23 per US dollar, according to market reporting, while the US Dollar Index rose 0.09% to 102.41. The US 10-year Treasury yield advanced 0.42% to 5.007%.
Higher bond yields can influence equity valuations by increasing the return available from fixed-income instruments and potentially raising borrowing costs. For India, a combination of elevated crude prices, currency pressure and higher domestic yields could complicate the outlook for inflation, corporate margins and foreign investment flows.
Gold futures for December 4 delivery on the Multi Commodity Exchange declined 0.10% to Rs 1,44,000.
Outlook
The next direction for Indian equities will depend on the interaction between crude oil prices, the Federal Reserve’s guidance, currency movements and the flow of corporate earnings. A sustained reduction in energy prices could ease concerns about inflation and corporate costs, while further increases may keep investors cautious.
For now, the outperformance of mid-cap and small-cap stocks, alongside gains in selected domestic-demand businesses, suggests that buying interest has not disappeared. However, continued weakness in heavyweight shares could prevent the benchmark indices from recovering convincingly. Investors are likely to remain selective, with earnings visibility, balance-sheet strength and sensitivity to energy prices continuing to influence stock-specific performance.
Disclaimer: This report is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Investors should consult a qualified financial adviser before making investment decisions.