Stock market today: Indian stock markets declined sharply on Wednesday as rising crude oil prices and bond yields dampened investor sentiment ahead of the US Federal Reserve’s policy decision later in the day.
The Sensex plunged 995 points, or 1.35%, to an intraday low of 72,603.57, while the Nifty fell 252 points, or 1.1%, to 22,497.70.
This crash came despite Mukesh Ambani-backed Jio Platforms making a robust debut on the bourses, becoming India’s second-most valuable listed company. Jio Platforms listed at a 21% premium over its IPO price, with a market capitalisation exceeding ₹12.5 lakh crore. This pushed the total market capitalisation of BSE-listed companies close to ₹470 lakh crore, even as benchmark indices dropped around 1%.
IT stocks led the losses, with Infosys, HCL Tech, Tech Mahindra and TCS falling 2-4%. Several other heavyweight stocks declined 1-2% each, while L&T bucked the trend, surging 4% after its Q2 results.
Broader markets outperformed, with the Nifty Midcap 100 and Nifty Smallcap 250 falling up to 0.5%. The Nifty IT index plunged over 3%, while Nifty FMCG and Nifty Oil & Gas lost more than 1% each.
What lies ahead?
According to V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, the market had turned decisively weak, with indications pointing to a decline of around 250 points in the Nifty at the opening. He also flagged reports of possible fresh US strikes on Iran after the US midterm elections.
“Brent crude has again firmed up to above $115, which is bad news for the Indian economy and markets,” Vijayakumar said.
He added that the Jio Platforms listing would be a key focus for investors, given that the qualified institutional buyers’ (QIB) portion of its IPO was subscribed 70.5 times. He expected strong demand for the stock at reasonable valuations.
Vijayakumar said a sustained market recovery would depend on two factors: a decline in crude oil prices and a reversal in foreign portfolio investor (FPI) outflows.
He also suggested that changes to long-term capital gains (LTCG) taxation could become necessary to attract foreign investors back to Indian markets. He cited FPI outflows of $19 billion in 2025 and $31 billion so far in 2026, warning that sustained selling was beginning to affect India’s otherwise favourable macroeconomic fundamentals.
Here are the key factors weighing on the stock market today:
1) Crude oil prices surge
Yemen’s Iran-aligned Houthi group claimed to have attacked Saudi Arabia’s largest oil refinery with a missile, escalating concerns over global energy supplies. Saudi authorities had not immediately confirmed the strike on the facility, which has a capacity of 550,000 barrels per day.
Brent crude rose 1.4% to $115.40 per barrel, while US West Texas Intermediate (WTI) crude futures crossed $101. The rally followed a nearly $2 decline on Tuesday after diplomatic developments in the Middle East eased supply concerns. Higher oil prices threaten to fuel inflation and increase India’s import bill.
2) IT stocks fall as global AI optimism returns
Indian IT stocks dropped as much as 4%, weighing on domestic markets, even as renewed enthusiasm for artificial intelligence (AI) lifted technology shares across Asia.
South Korea’s Kospi surged over 6% after chipmaker SK Hynix reported a record operating profit of 83.3 trillion won ($62.8 billion), nearly seven times its year-earlier level and above estimates. SK Hynix and Samsung shares gained up to 9%, Japan’s Nikkei 225 rose 1%, and Kioxia Holdings jumped 10% ahead of its Friday results.
Indian IT stocks had recently rallied as global AI shares weakened amid concerns about excessive valuations and a potential bubble. The rebound in global AI stocks has now reversed that trend.
3) US bond yields climb above 5%
The benchmark 10-year US Treasury yield rose above 5% after briefly slipping below the psychological threshold. The 30-year yield crossed 5.3%, while the two-year yield, which tracks expectations of Federal Reserve policy, approached 4.75%.
Rising bond yields make fixed-income investments more attractive relative to equities, potentially prompting investors to shift money away from riskier assets such as stocks.
4) Investors await the Fed’s policy decision
Investors are tracking the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting, which begins today. Markets largely expect interest rates to remain unchanged, but surging energy prices and inflationary pressures could influence the central bank’s outlook.
The US war on Iran, which began in late February, has pushed energy prices higher, adding to inflation concerns alongside the administration’s tariff policies. Investors are also watching the US midterm elections, scheduled to begin on November 3, for potential implications for economic policy and financial markets.
5) Technical view
Nifty’s decline remained limited above 22,630 in the previous session, but volatility emerged after the index tested 22,800, stalling its upward momentum, said Anand James, Chief Market Strategist at Geojit Investments. While the moves were largely anticipated, renewed pressure on support levels in the second half of the session signals weakness, leaving the 22,500-22,250 range vulnerable.
“We will need to see consistent trades above 22,715 or bargain hunting from the 22,500 region to renew upside hopes,” James said.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
About The Author
