Indian stock markets ended lower on Wednesday, October 28, as selling in information technology (IT) and oil and gas shares, coupled with elevated crude oil prices, weighed on investor sentiment. The benchmark indices recovered from their steep intraday losses but remained in the red, with investors cautious ahead of the US Federal Reserve’s policy decision and amid concerns over geopolitical tensions in the Middle East.
The BSE Sensex closed at 73,246.03, down 352.64 points, or 0.48%. The NSE Nifty 50 settled at 22,698.85, losing 50.90 points, or 0.22%, and ending below the 22,700 mark.
The session was volatile. The Sensex touched an intraday low of 72,603.57, while the Nifty fell to 22,497.70 before buying at lower levels helped both indices recover part of their losses. The recovery showed that investors continued to look for opportunities in selected stocks even as broader sentiment remained cautious.
Select heavyweight stocks helped limit the decline. Larsen & Toubro (L&T) climbed 3.68%, making it one of the strongest performers among the major stocks. Trent gained 2.79%, while State Bank of India advanced 1.23%. Axis Bank rose 1.14%, InterGlobe Aviation, which operates IndiGo, added 1.13%, and HDFC Bank gained 0.87%.
These gains reflected buying interest in select industrial, banking and consumer-facing stocks. Auto and pharmaceutical shares also provided support, preventing the benchmark indices from ending closer to their intraday lows.
The Nifty Auto index rose 1.45%, while the Nifty Pharma index gained 1.04%. Media stocks advanced 1.38%. Financial services and private banking indices also finished higher, gaining 0.45% and 0.35%, respectively.
However, these gains were not broad enough to offset pressure from IT and energy stocks, which remained key drags on the market.
IT stocks faced selling pressure as investors assessed the outlook for US interest rates and technology spending. The US Federal Reserve’s policy announcement remained a key event for global markets, with traders watching for signals on borrowing costs and the economic outlook.
The Nifty IT index declined 1.98%. Infosys fell 3.34%, making it the biggest loser among the major IT stocks highlighted in the market report. Tech Mahindra dropped 1.83%, Tata Consultancy Services (TCS) declined 1.68%, and HCLTech slipped 1.13%.
Indian IT companies earn a substantial share of their revenue from overseas markets, particularly the US. Concerns about technology budgets, global demand and spending by businesses can therefore influence investor expectations for the sector. Selling in large IT companies also tends to affect benchmark indices because of their significant weight in the market.
The weakness extended beyond technology shares. The Nifty FMCG index fell 0.56%, while metals and real estate stocks also ended lower.
Rising crude oil prices added to the pressure on Indian equities. The Nifty Oil and Gas index fell 2.27%, as energy stocks weakened amid concerns about supply disruptions and the impact of the Middle East conflict on global oil markets.
Brent crude traded at around $114.45 a barrel, up 0.50%, while US West Texas Intermediate crude rose 1.21% to $101.11. Prices remained elevated after Houthi attacks on Saudi Arabia renewed concerns about potential disruptions to oil supplies.
Higher crude prices are a concern for India because the country relies heavily on imported oil to meet its energy requirements. A sustained rise can increase the import bill, put pressure on the rupee and raise transportation and production costs. It can also add to inflation risks, complicating the outlook for businesses and monetary policy.
The combination of high oil prices and weakness in IT shares kept investors cautious throughout the session.
The broader market performed better than the benchmark indices. The Nifty Midcap 50 rose 0.54%, the Nifty Midcap 100 gained 0.43%, and the Nifty Smallcap 100 advanced 0.90%. Their gains indicated that buying continued in selected mid-sized and smaller companies despite weakness among several large-cap stocks.
The Nifty 100, Nifty 200 and Nifty 500, however, ended marginally lower, reflecting the uneven nature of the session. The India VIX, a measure of expected market volatility, declined 0.25% to 16.36.
Market participants also tracked the debut of Jio Platforms, which listed at a premium of around 21.36% to its initial public offering price. The strong listing drew attention even as the broader market struggled.
Vinod Nair, head of research at Geojit Investments Limited, said a fresh rise in crude oil prices and sharp selling in IT stocks had weighed on domestic equities. He noted that strength in banking, auto and pharmaceutical shares, along with buying at lower levels, helped the benchmarks recover from their early declines.
Investors will continue to monitor crude oil movements, developments in the Middle East, global technology-sector sentiment and the US Federal Reserve’s policy decision for clearer signals on the market’s direction.