Nifty Ends Flat on F&O Expiry Day; Broader Markets Outperform with Nifty Smallcap Surging 2.7% 

Indian equity markets ended Tuesday's session on a flat note, with the Nifty 50 and Sensex recording marginal losses despite strong buying interest across the broader market.

The October monthly derivatives expiry witnessed contrasting trends as banking heavyweights came under pressure, while several midcap and smallcap stocks attracted buying interest.

After Monday's sharp recovery, the benchmark indices struggled to maintain their upward momentum. However, selective buying across media, realty, pharma and auto-related stocks prevented a deeper decline.

At the closing bell, the Nifty 50 settled at 22,749.75, down 3.45 points or 0.02%, while the BSE Sensex closed at 73,598.67, declining 8.08 points or 0.01%. Both indices ended virtually unchanged from their previous closing levels. Interestingly, the India VIX declined by 4.43% to 16.4%.

Despite the flat performance of the frontline indices, positive market breadth indicated that buying interest remained strong across the broader market.

Nifty 50 Logs Marginal Gains of 0.15% in October Derivatives Series

The Nifty 50 concluded its October derivatives series with a modest increase of 33.55 points, or 0.15%. The index moved from 22,716.20 on September 29, 2026, to 22,749.75 on October 27, 2026.

The monthly series witnessed sharp fluctuations amid rising crude oil prices, geopolitical uncertainty and continued volatility in global financial markets.

Nifty Smallcap Index Jumped 2.69%

The biggest positive development during Tuesday's trading session came from the broader market, where midcap and smallcap stocks substantially outperformed the frontline indices.

The Nifty Smallcap 100 index jumped 2.69%, while the Nifty Midcap index gained 1%.

Sectoral Performance: Majority of Sectoral Indices Ended in Green; Nifty Media Jumped 3.54%

Majority of the sectoral indices ended Tuesday’s season in green with Nifty Media emerging as a top performer, advancing 3.54%. On the other hand, Nifty Bank declined the most by 0.72%.

The Nifty IT index also ended lower by 0.26%, with TCS, Wipro, LTM, Persistent and Infosys ending in the red. Infosys slipped 0.26% amid concerns over its FY27 revenue growth outlook.

Brent Crude Near $116, Rupee Weakness Adds to Market Concerns

Elevated crude oil prices continued to remain a concern for domestic equity markets. Brent crude was trading near $116 per barrel on Tuesday, reflecting persistent supply-related concerns arising from developments in the Middle East.

Higher oil prices are particularly important for India, which relies heavily on imported crude oil. An increase in energy costs can raise the country's import bill, put pressure on inflation and affect profitability across several industries.

Meanwhile, the Indian rupee weakened to around 95.12 against the US dollar on Tuesday, adding to concerns over imported inflation and higher input costs for companies dependent on overseas purchases.

Geopolitical Developments and US Fed Decision Keep Investors Cautious

Uncertainty surrounding the Middle East remained an important factor influencing global financial markets. Investors continued to monitor developments that could disrupt oil production and transportation routes.

At the same time, attention shifted towards the US Federal Reserve's monetary policy announcement scheduled for Wednesday, October 28.

The Fed's decision and its commentary on future interest rates could influence global bond yields, the US dollar and capital flows into emerging markets.

European Markets Trade Mixed; FTSE 100 Falls Nearly 0.9%

European equity markets displayed a mixed trend during Tuesday's trading session as investors continued to assess global economic developments and geopolitical uncertainty.

Germany's DAX index was trading at 25,399.07, down 11.77 points or 0.05%. The UK's FTSE 100 underperformed its European counterparts, falling 95.63 points or 0.89% to 10,671.70.

Meanwhile, France's CAC 40 traded marginally higher at 7,848.45, gaining 1.13 points or 0.01%.

US Stock Futures Edge Higher Ahead of Wall Street Opening

US stock index futures were trading marginally higher on Tuesday, indicating a relatively stable opening for US equity markets.

Dow Jones futures rose 22 points, or 0.04%, to 52,572, while S&P 500 futures gained 3 points, or 0.04%, to 7,717.50.

Nasdaq 100 futures also moved higher, advancing 19 points or 0.06% to 29,456.25.

The modest gains indicated that US equity futures remained relatively steady ahead of the Federal Reserve's monetary policy announcement, with investors awaiting further clarity on the interest rate outlook.