IT Stocks Pull Down Sensex and Nifty at Open Amid Global Cues and Crude Pressures

Equity benchmarks opened sharply lower on Wednesday, October 28, weighed down by a broad-based selloff in technology stocks, even as broader Asian markets traded with a positive bias. The Sensex opened at 73,253.44 and traded at 72,928.12, down 670.55 points, or 0.91 per cent, by 9:19 am. The Nifty 50 opened at 22,678.00 and slipped further to 22,591.85, marking a decline of 157.90 points, or 0.69 per cent.

The domestic market decline occurred despite a positive overnight session on Wall Street. Chip stocks on US exchanges led the advance following Broadcom's announcement that a consortium of banks would provide $63 billion in financing for AI chips and networking solutions to be leased to Anthropic. Consequently, the S&P 500 rose 0.6 per cent, the Dow Jones Industrial Average added 0.03 per cent, and the Nasdaq Composite gained 1.18 per cent.

In India, the information technology sector bore the heaviest selling pressure on the Nifty 50. Infosys fell 4.53 per cent, Tech Mahindra dropped 3.88 per cent, HCL Technologies shed 3.82 per cent, and Tata Consultancy Services declined 3.17 per cent. Meanwhile, gainers included Larsen & Toubro, which rose 5.67 per cent, Bajaj Auto, advancing 2.14 per cent, SBI Life Insurance, gaining 1.12 per cent, Hindalco, rising 0.63 per cent, and Maruti Suzuki, which edged up 0.60 per cent.

Market sentiment remained restrained by rising energy costs. Brent crude edged up 1.5 per cent to above $115 following an attack on a Saudi Arabian refinery, reigniting supply-side concerns and adding pressure to inflation-sensitive consumption and energy-intensive businesses in the Indian economy. Foreign institutional activity also remained a focal point; FPI outflows have reached $19 billion in 2025 and $31 billion so far this year, though FPIs recorded net equity purchases of ₹4,240 crore on Tuesday, while Domestic Institutional Investors recorded outflows of ₹1,250 crore.

Market participants are closely tracking the upcoming US Federal Reserve policy decision, where the central bank is widely expected to hold its benchmark interest rate unchanged at 3.75 per cent to 4.00 per cent. Additional focal points for investors include corporate quarterly earnings and the upcoming market debut of Jio Platforms, which could influence direction and volatility through the session.

"The current market correction reflects broader macro pressures, particularly rising crude oil prices and continuous foreign institutional outflows. For the domestic startup and broader business ecosystem, a volatile public market environment underscores the importance of strong fundamentals and capital efficiency. Entrepreneurs and investors must closely monitor macroeconomic shifts, interest rate decisions by the US Federal Reserve, and currency movements as they navigate capital raising and strategic planning in the coming quarters." — Dr. Shishir Gupta, Founder & CEO, StartupLanes