Sensex falls 353 points, Nifty below 22,700 as IT and oil stocks drag

The BSE Sensex closed at 73,246.03, down 352.64 points or 0.48%. The NSE Nifty 50 settled at 22,698.85, falling 50.90 points or 0.22%.

In Short

• IT stocks dropped nearly 2%, Infosys fell 3.34%, TCS down 1.68%
• Oil prices rose on Houthi attacks, Brent crude at $114.45 per barrel
• Auto, banking and pharma stocks rose, limiting overall market losses

Stock market ended lower on Wednesday, October 28, as heavy selling in IT and oil and gas stocks, along with elevated crude oil prices, weighed on investor sentiment. However, buying in auto, banking and pharma stocks helped the benchmark indices recover from their intraday lows.

The BSE Sensex closed at 73,246.03, down 352.64 points or 0.48%. The NSE Nifty 50 settled at 22,698.85, falling 50.90 points or 0.22%.

The Sensex touched an intraday low of 72,603.57 before recovering some losses. The Nifty also rebounded from its day's low of 22,497.70, supported by buying at lower levels.

IT, OIL AND GAS STOCKS LEAD LOSSES

IT stocks remained under pressure ahead of the US Federal Reserve's policy decision, with investors assessing the outlook for interest rates and their potential impact on technology spending in the US, a key market for Indian IT companies.

The Nifty IT index fell 1.98%. Infosys was the biggest loser among the major IT stocks, declining 3.34%, while TCS dropped 1.68%, Tech Mahindra fell 1.83% and HCLTech slipped 1.13%.

Oil and gas stocks also weighed on the market, with the sectoral index declining 2.27%. Brent crude traded at $114.45 per barrel, up 0.50%, while WTI crude rose 1.21% to $101.11.

Oil prices remained elevated after Houthi attacks on Saudi Arabia renewed concerns about potential supply disruptions, overshadowing diplomatic efforts. Higher crude prices remain a concern for India because of the country's dependence on imported oil and the resulting risks to inflation and corporate costs.

Nifty FMCG fell 0.56%, while metals and realty stocks also ended lower.

AUTO, BANKING AND PHARMA PROVIDE SUPPORT

Buying in select heavyweight stocks helped limit the market's losses. Larsen & Toubro (L&T) surged 3.68%, while Trent rose 2.79% and State Bank of India gained 1.23%. Axis Bank advanced 1.14%, Indigo rose 1.13% and HDFC Bank gained 0.87%.

The Nifty Auto index climbed 1.45%, while the Nifty Pharma index rose 1.04%. The financial services and private banking indices gained 0.45% and 0.35%, respectively. Media stocks also advanced 1.38%.

The broader market showed a mixed trend. The Nifty Midcap 50 rose 0.54%, the Nifty Midcap 100 gained 0.43% and the Nifty Smallcap 100 advanced 0.90%. However, the Nifty 100, Nifty 200 and Nifty 500 ended marginally lower.

India VIX, the market's volatility gauge, declined 0.25% to 16.36.

Vinod Nair, Head of Research at Geojit Investments Limited, said domestic equities remained volatile as a fresh spike in crude oil prices and sharp selling in IT stocks weighed on sentiment.

He said oil prices had rebounded amid renewed concerns over supply disruptions following Houthi attacks on Saudi Arabia, while markets were also watching the US midterm elections for greater clarity on the geopolitical landscape.

Nair noted that strong earnings from a leading capital goods company, resilience in banking, auto and pharma stocks, and value buying at lower levels helped the benchmark indices recover a significant portion of their early losses.

Investors will now focus on the US Federal Reserve's policy guidance, particularly signals on the interest-rate trajectory into December.

While Nair cautioned that markets may not be completely out of the woods, he said the most challenging phase of the correction appeared to have been factored in. For long-term investors, he said, the focus could gradually shift from managing near-term volatility to selectively accumulating quality businesses at attractive valuations.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

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