Sensex drops 282 points as high crude oil prices and IT stock selling drag markets
Benchmark stock indices declined in early trade on Tuesday, October 27, 2026, weighed down by persistently elevated crude oil prices and continued selling in information technology shares, as investors stayed cautious ahead of the U.S. Federal Reserve's two-day policy meeting.
The 30-share BSE Sensex fell 281.95 points to 73,316.21, while the 50-share NSE Nifty slipped 63.15 points to 22,694.60.
Among Sensex constituents, Infosys, Hindustan Unilever, Tata Consultancy Services, Asian Paints, HCL Tech and Tech Mahindra were the major laggards. Bharat Electronics, Eternal, Maruti and InterGlobe Aviation traded higher.
IT shares often react sharply to global cues because a large share of their revenue comes from clients in the United States and Europe. A weaker outlook for overseas demand or a stronger dollar can weigh on the sector's earnings expectations.
Brent crude, the global oil benchmark, traded 0.74 per cent lower at $115 a barrel, though it remained close to recent highs. Costlier crude matters directly for India, which imports more than 80 per cent of its oil requirement. A higher import bill widens the current account deficit, puts pressure on the rupee and feeds into domestic inflation.
"Brent crude remaining above $114 and the U.S. 10-year bond yield hovering around 4.97% continue to be near-term headwinds for the market. FIIs will remain in a risk-off mode in this adverse macro setting. However, the improving fundamentals of the corporate sector as reflected in Q2 earnings and the robust domestic fund inflows will continue to support the market," said V.K. Vijayakumar, chief investment strategist, Geojit Investments Limited.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,462.49 crore on Monday, October 26, 2026, according to exchange data.
U.S. government bond yields are tracked closely by emerging-market investors because higher yields on risk-free American debt can make equities in countries such as India relatively less attractive, prompting fund outflows.
"Indian equity markets are likely to remain cautious amid persistently elevated crude oil prices, with WTI crude trading near the $101-per-barrel mark. Investor sentiment is also likely to remain cautious ahead of the U.S. Federal Reserve's policy decision, with markets looking for signals on the future interest-rate trajectory. Any shift in the Fed's outlook could influence U.S. Treasury yields and the dollar, with implications for foreign capital flows into emerging-market equities," said Ponmudi R., chief executive officer of Enrich Money, an online trading and wealth-tech firm.
In Asian markets, South Korea's Kospi and Japan's Nikkei 225 traded significantly higher, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index quoted lower. U.S. markets ended higher on Monday, October 26, 2026.
"The U.S. Federal Reserve begins its two-day meeting today, and guidance on inflation will matter more than the widely expected unchanged rate decision. A hawkish signal could lift yields and the dollar and restrict emerging-market flows, while balanced guidance may allow the recent equity recovery to broaden," said Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, a research analyst firm.
On Monday, the Sensex ended 482.92 points, or 0.66 per cent, higher at 73,606.75, while the Nifty rallied 153.20 points, or 0.68 per cent, to settle at 22,753.20.
Market participants will watch crude oil prices, the Fed's commentary on inflation and interest rates, and foreign fund flows for fresh direction in the coming sessions.
