Sensex recovers from 500-point early trade drop (26 Oct)

Market opens with significant decline

Indian equity markets opened with a significant decline on Monday, marking the fifth consecutive session of losses for both major indices. At the open, the Nifty 50, a 50-share index of the National Stock Exchange, fell 0.87 percent to 22,402.85.

The 30-share BSE Sensex dropped 561.89 points, or 0.77 percent, to 72,561.94 at the start of trading. Separately, the BSE Sensex fell 536.30 points to 72,583.86, and the NSE Nifty fell 200.10 points to 22,402.80 in early trade.

Geopolitical factors and crude oil prices weigh on sentiment

Benchmark equity indices fell in early trade on Monday amid elevated crude oil prices caused by geopolitical uncertainties and caution ahead of the US Federal Reserve's policy decision. Brent crude traded 2.14 percent lower at $114.2 per barrel.

Ponmudi R, CEO of Enrich Money, said Indian equities are likely to remain under pressure due to elevated crude oil prices, escalating geopolitical tensions, and uncertainty over the US Federal Reserve's policy outlook.

Market breadth and sectoral performance

Market breadth showed 81 stocks advancing, 13 declining, and 90 remaining unchanged in the latest snapshot. During the earlier selling pressure, 1,688 stocks declined on the National Stock Exchange while 767 stocks advanced and 89 remained unchanged.

Among the 30 Sensex firms, Asian Paints, Bajaj Finance, Hindustan Unilever, Infosys, Bajaj Finserv, and Reliance Industries were the major laggards. Kotak Mahindra Bank, Sun Pharma, Adani Ports, and Axis Bank emerged as the winners. The BSE Sensex is a free-float market-weighted stock market index of 30 well-established companies listed on the Bombay Stock Exchange.

Technical research outlook for Nifty 50

Sachin Gupta, vice president of technical research at Choice Broking, said the Nifty 50 index faces immediate resistance at 22,750–22,800.

He identified immediate support for the index at 22,400–22,300.

Historical context of recent market sessions

Investors lost ₹5 lakh crore on October 19, 2026, as the Sensex fell over 870 points and the Nifty 50 dropped below 22,900. On October 21, 2026, the BSE Sensex declined alongside the SSE Composite and Hang Seng indices, while the Nikkei 225 rebounded.

On October 22, 2026, the Sensex fell 500 points. TradingView reported on the same day that the Sensex dropped over 700 points and the Nifty crashed 1%.

On October 23, 2026, the Sensex dropped more than 700 points and the Nifty 50 slipped below 22,400. Moneycontrol reported that the Sensex crashed 1,250 points from the day's high that same day, with the Nifty falling below 22,400.

On Friday, the Sensex settled at 73,123.83, a decline of 125.56 points or 0.17 per cent. The Nifty closed at 22,600 after falling 87.65 points or 0.39 per cent.

Investor focus on upcoming US Federal Reserve decision

Foreign Institutional Investors (FIIs) bought equities worth ₹887.65 crore on Friday.

Investors are monitoring the US Federal Reserve policy meeting scheduled for October 27–28, where the central bank is expected to keep interest rates unchanged.