Crude shock and IT slump keep Nifty in the red; Bank stocks limit the damage

A fresh spike in crude oil prices following an attack on a Saudi Arabian refinery and a broad selloff in information technology stocks kept Indian equity benchmarks under pressure through most of Wednesday’s session, though a sharp recovery in banking stocks prevented a steeper decline.

The Nifty 50 closed at 22,698.85, down 50.90 points or 0.22 per cent, its second consecutive session of losses. The Sensex settled at 73,246.03, down 352.64 points.

Bank Nifty, however, bucked the trend, ending 292.50 points higher at 54,267.40, forming what technical analysts described as a bullish piercing candlestick pattern after recovering over 800 points from its intraday low.

The session was marked by extreme intraday swings. The Nifty opened at 22,678, hit a day’s low of 22,497.70 within the first 75 minutes before recovering nearly 280 points, only to give back some gains in the final two hours.

Market overview

Cash-market turnover on the NSE rose 8 per cent from the previous session, partly aided by Jio Platforms’ debut volumes of ₹24,265 crore. Jio Platforms, the telecom and digital services arm of Reliance Industries, listed at a premium to its issue price in what was India’s largest-ever IPO.

On the sectoral front, IT and oil and gas were the session’s biggest laggards, each shedding more than 2 per cent. Nifty MidSmall Healthcare, Consumer Durables and Auto were the top-gaining sectors.

Apollo Hospitals and Larsen and Toubro were the Nifty’s top gainers, while Infosys and Reliance Industries were among the key laggards.

For the third straight session, broader markets outperformed the benchmarks. The Nifty Midcap 100 gained 0.43 per cent and the Nifty Smallcap 100 rose 0.9 per cent, with the BSE advance-decline ratio at 1.10.

Within the Nifty 500 universe, 254 stocks advanced. ...”The resilience in the broader market suggests that investors continue to selectively accumulate opportunities in the midcap and smallcap segments,”... Shah noted.

Rupee and commodity movements

The Indian rupee weakened 10 paise to close at 95.22 against the dollar, pressured by the rise in crude. Brent crude was trading near $114–115 per barrel, with WTI above $101.

COMEX gold was near $4,060, while MCX gold traded around ₹1,43,640. The US 10-year Treasury yield held near 5 per cent, with all eyes on the Federal Reserve’s policy decision and Chair Kevin Warsh’s guidance on the interest-rate path into December.

Analyst views

...”In 15 out of the 18 trading sessions since October 1, the index has recorded an intraday range exceeding 200 points, highlighting the prevailing volatile market environment,”... said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.

...”Domestic equities remained volatile and traded lower as a fresh spike in crude oil prices and sharp selling in IT stocks weighed on investor sentiment. Oil prices rebounded amid renewed concerns over supply disruptions following Houthi attacks on Saudi Arabia, overshadowing ongoing diplomatic efforts,”... said Vinod Nair, Head of Research, Geojit Investments Limited.

...”IT stocks led the decline, with profit-booking emerging after their recent outperformance. Realty and energy stocks also came under pressure,”... said Ajit Mishra, SVP – Research, Religare Broking.

...”While the market may not be completely out of the woods, the most challenging phase of the correction appears to be factored. For long-term investors, the focus can gradually shift from managing near-term volatility to selectively accumulating quality businesses at attractive valuations,”... Nair said. Over the past five sessions, the Nifty has consolidated within a 22,400–22,800 band. ...”A decisive break of either end is likely to set the next directional trend. Above 22,800, the next resistance lies at 23,175; below 22,400, the index could slide toward 22,180,”... HDFC Securities said.

The Fed’s guidance, crude price trajectory and the outcome of the US midterm elections on November 3 are the three variables markets will watch most closely in the sessions ahead.

Published on October 28, 2026