Sensex, Nifty Extend Losses as Reliance and Infosys Drag; Bank Nifty and Auto Index Outperform

Indian equity markets witnessed another volatile trading session on Wednesday, October 28, 2026, as weakness in heavyweight IT stocks and concerns surrounding rising crude oil prices kept benchmark indices under pressure. Investors also remained cautious ahead of the US Federal Reserve's interest rate decision, while geopolitical tensions in the Middle East added to uncertainty across global financial markets.

The Nifty 50 ended below the psychological 22,700 mark at 22,698.85, declining 50.90 points, or 0.22%, marking its second consecutive session of losses. Sensex declined 352.64 points, or 0.48%, to 72,246.03 at the close. The Bank Nifty index closed higher by 0.54% at 54,267.40.

Sectoral Performance: IT Stocks Lead Decline, While Auto Index Gains 1.45%

The IT sector remained the biggest drag on Wednesday, with the Nifty IT index declining 1.98%. Infosys slipped more than 3%, while Tata Consultancy Services, Tech Mahindra and HCL Technologies also witnessed selling pressure.

The weakness in IT shares came amid caution surrounding the US economic outlook and the Federal Reserve's upcoming monetary policy announcement. Since Indian IT companies derive a substantial portion of their revenue from overseas markets, particularly the US, changes in economic growth expectations and corporate technology spending remain important factors for the sector.

Meanwhile, the Realty, FMCG and Energy indices also remained under pressure.

On the positive side, the Nifty Auto index emerged as the leading sectoral gainer, advancing 1.45%. Bosch Ltd climbed more than 4%, while TVS Motor Company gained over 3% following its quarterly earnings announcement. Bank Nifty also outperformed the broader benchmarks, rising 0.54%.

Midcap and Smallcap Stocks Outperform Benchmarks

Despite weakness in the Sensex and Nifty, the broader market maintained a positive bias.

The Nifty Smallcap 100 gained 0.90%, while the Nifty Midcap index advanced 0.43%, reflecting continued interest in stocks beyond the frontline indices.

Brent Crude Above $115 Adds to Market Concerns

Crude oil prices remained a major concern for domestic equity markets as geopolitical developments in the Middle East continued to threaten global energy supplies.

Brent crude futures rose approximately 1.36% to $115.40 per barrel following reports of an attack on a refinery in Saudi Arabia. The development renewed concerns about possible disruptions to oil production and supply routes in the region.

Indian Rupee Weakens Against US Dollar

The Indian rupee traded on a weak note against the US dollar on Wednesday, October 28, 2026, hovering around ₹95.22 per dollar compared with its previous close of ₹95.12.

The domestic currency remained under pressure as elevated crude oil prices increased concerns about India's import bill and demand for dollars. Brent crude prices climbed more than 1% to around $115.50 per barrel amid renewed geopolitical tensions in the Middle East.

European Markets Trade Lower Amid Global Uncertainty

European stock markets traded in negative territory on Wednesday, October 28, 2026, as investors assessed geopolitical developments, elevated energy prices and the outlook for global interest rates.

Germany's DAX index slipped 12.30 points, or 0.05%, to 25,578.47, while the UK's FTSE 100 declined 35.21 points, or 0.33%, to 10,651.33.

France's CAC 40 also remained under pressure, falling 11.75 points, or 0.15%, to 7,875.39.

US Stock Futures Trade Mixed; Nasdaq 100 Shows Relative Strength

US stock futures presented a mixed picture on Wednesday as investors awaited the Federal Reserve's monetary policy announcement.

Dow Jones futures declined 117 points, or 0.22%, to 52,462, suggesting a subdued start for blue-chip stocks.

In contrast, S&P 500 futures advanced 9.50 points, or 0.12%, to 7,767.75, while technology-heavy Nasdaq 100 futures gained 117.50 points, or 0.39%, to 29,929.50.

US Federal Reserve Decision in Focus

The US Federal Reserve's monetary policy announcement, scheduled for October 28, remained another important event influencing global market sentiment.

While the interest rate decision itself will be closely monitored, investors will also examine the central bank's commentary on inflation, economic growth and the future direction of monetary policy.

Any indication that US interest rates could remain elevated for longer may strengthen the dollar and influence capital flows towards emerging markets, including India.