Indian stock markets traded lower on Wednesday, October 28, as rising crude oil prices, escalating tensions in the Middle East and caution ahead of the US Federal Reserve’s policy decision are the key factors that weighed on investor sentiment. By 10:20 AM IST, the Sensex had fallen more than 1% to 72,600, while the Nifty 50 declined 0.90% to 22,500. Selling in IT stocks added to the pressure, although gains in select auto and infrastructure shares helped limit the decline.

1. Crude Oil Prices Rise Above $115

Brent crude climbed around 1.4% to $115.40 per barrel after an attack on a Saudi Arabian refinery renewed concerns about global oil supplies. Higher oil prices are a major concern for India because the country depends heavily on imported crude. A sustained increase could raise inflation, weaken the rupee and increase costs for businesses such as aviation, paints and tyres.

2. US-Iran Tensions Keep Markets Uncertain

Reports of possible renewed US military action against Iran have increased uncertainty across global markets. Investors are concerned that further escalation could disrupt oil shipments and supplies through the Strait of Hormuz, a critical route for global energy trade. This uncertainty is encouraging cautious trading, particularly in countries that rely heavily on imported energy.

3. IT Stocks Face Selling Pressure

Information technology stocks were among the biggest drags on the benchmark indices. The Nifty IT index fell around 3.1%, while Infosys declined 4.4%. TCS and HCLTech also lost around 3% each. Infosys had recently lowered its annual revenue growth forecast, raising concerns about demand in North America and the outlook for the IT services sector.

4. Investors Await the US Federal Reserve’s Decision

Investors are cautious ahead of the US Federal Reserve’s policy announcement. While markets broadly expect the Fed to keep interest rates unchanged, its comments on inflation and future rate decisions will be closely watched. A more hawkish outlook could keep global borrowing costs elevated and affect foreign investment flows into emerging markets such as India.

5. Jio Platforms’ Market Debut Draws Attention

Jio Platforms made its stock market debut at a premium of 21.4% over its IPO price, becoming India’s second-largest publicly traded company by market capitalisation. However, the strong listing was not enough to prevent benchmark indices from falling as concerns over oil prices and global uncertainty dominated trading. Gains in Bajaj Auto and Larsen & Toubro helped limit some of the losses.

Key Technical Analysis

Sensex: The index dropped to an intraday low of 72,772.48. The 73,000 level is an important area to monitor, while a sustained recovery above 73,000 could improve short-term sentiment.

Nifty 50: The index touched an intraday low of 22,540.70. The 22,500 level is an important psychological support, with 22,350–22,300 as the next downside zone highlighted by market analysts. A recovery above 22,650 could help ease immediate selling pressure.

Bank Nifty: The index may remain sensitive to broader market volatility and changes in interest-rate expectations. The 53,800–53,500 zone offers near-term reference support, while 54,200–54,400 may act as resistance. These levels are indicative and should be checked against live prices.

Today’s Key Takeaway

High crude oil prices, geopolitical uncertainty and selling in IT stocks are weighing on Indian equities. The US Federal Reserve’s policy decision may influence market direction, while the Nifty’s ability to hold above 22,500 will be important for sentiment. Investors should track oil prices, corporate earnings and global cues as the session progresses.

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