Sensex drops 826 points as crude oil prices climb (28 Oct)

Market performance on October 27

Indian equity markets closed largely unchanged on October 27, 2026, following a volatile session characterized by investor caution. The 30-share BSE Sensex fell 8.08 points, or 0.01 percent, to close at 73,598.67. The 50-share NSE Nifty index declined 3.45 points, or 0.02 percent, to finish the day at 22,749.75.

On October 27, the BSE Sensex reached an intraday peak of 73,762.98 and a floor of 73,179.41 throughout the session. The Hindu and Rediff both attributed the flat market performance to elevated crude oil prices. Rediff also cited investor concern regarding an upcoming US Federal Reserve policy decision.

Selling pressure in the IT and banking sectors contributed to the market difficulty. Conversely, Bharti Airtel, Trent, Maruti, and Power Grid recorded gains.

This performance followed a four-session losing streak that ended on October 26, 2026, when value buying lifted the indices.

Brent crude prices exceed $115 per barrel

On October 28, 2026, Brent crude prices rose past $115 per barrel due to fears regarding possible supply interruptions in the Middle East. This rise follows a slight decrease on October 27, when Rediff reported that Brent crude fell by 0.03 per cent to reach USD 115.8 per barrel.

Fears regarding supply grew following Iran's announcement that an oil tanker had ignited in the Strait of Hormuz after hitting naval mines. Ndtvprofit.com noted that US crude oil inventories dropped by approximately 2 million barrels during the week ended October 23, 2026.

Geopolitical tensions impact global outlook

According to reports, the United States is weighing a military operation against Iran in the wake of the November 3, 2026, midterm elections. Potential targets of this action include nuclear facilities and strategic infrastructure.

Expert insights on market volatility

Vinod Nair, Head of Research at Geojit Investments Limited, noted that Indian equities finished the October 27, 2026, session unchanged, as high crude prices and uncertainty regarding the US Federal Reserve decision outweighed positive global indicators. Nair further mentioned that while profit taking pulled down IT and private banks, sectors such as pharma, autos, PSU banks, and realty saw gains. Resilient broader-market participation pointed to selective domestic risk appetite.

According to Singh, investors are maintaining a prudent stance, prioritizing long-term prospects before initiating new positions. He identified some partial profit booking in the market.

For the Nifty 50, Singh identified 22,350 and 22,300 as the next support levels, with 22,650 serving as a key resistance level.

US Federal Reserve policy expectations

The US Federal Reserve is expected to keep its benchmark interest rate between 3.75% and 4% during its meeting on October 28, 2026. The CME FedWatch tool indicated a 92% probability of this outcome.

Investors are awaiting the policy statement and comments from US Federal Reserve Chair Kevin Warsh for insights into future monetary policy.

FPI activity and broader market trends

Foreign Portfolio Investors bought shares worth ₹4,240 crore on October 27, 2026. This followed Foreign Institutional Investors selling equities worth ₹1,462.49 crore on October 26, 2026.

The Nifty Smallcap 100 index saw a 0.16% decline on October 28, 2026, whereas the Nifty Midcap 100 index experienced a 0.35% increase. Markets in Hong Kong and Shanghai rose on October 26, 2026, while waiting for key central bank moves.