Indian Shares Fall for Third Day; Rupee Weak as Oil Surges to $112

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

India Stocks fall

By Dehuti Jani

October 22, 2026 at 12:37 PM IST

Indian benchmark equity indices fell for the third consecutive session on Thursday as escalating conflict in West Asia pushed Brent crude oil to $112 a barrel, stoking inflation concerns for the world's third-largest oil importer. The Nifty50 declined 0.54% to 22,687.65, while the Sensex fell 460.30 points, or 0.62%, to 73,249.39.

Selling was broad-based, with 13 of the 16 major sectoral indices ending lower. IT, energy, and FMCG stocks led losses, while pharmaceuticals were the only major bright spot among the sectors highlighted. HDFC Bank fell 1.8%, and Reliance Industries lost 2%. Nestle India, Eternal and HDFC Life were among the biggest Nifty 50 laggards. The Nifty MidCap 100 and SmallCap 100 indices dropped 0.87% and 1.17%, respectively.

Oil prices climbed more than 3% from the previous day as further Houthi attacks in Saudi Arabia heightened concerns about a wider conflict and potential supply disruptions. The attacks also prompted the US to order some diplomats and their family members to leave its missions in the kingdom, adding to investor caution.

The rupee snapped an eight-session gaining streak, falling 0.4% to 94.8175 per US dollar. The currency had earlier touched its strongest level in more than six weeks, but gains faded as rising oil prices and broad-based dollar demand weighed on sentiment.

Indian government bond yields rose as crude oil prices climbed, and traders positioned ahead of Friday's gilt auction. The benchmark 6.94% 2036 bond yield increased to 7.4596% from 7.4427% on Wednesday, extending pressure on the domestic debt market.

Top Movers of the Day

Bajaj Auto advanced 0.82% to close at ₹10,155, standing out as a top gainer amid a broadly weak session. The stock saw renewed investor interest following recent corrections, helping it lead the auto pack in positive territory.

Larsen & Toubro climbed marginally to close at ₹3,638.30, showing impressive resilience in the capital goods space. The shares also rose, buoyed by positive market sentiment carrying over from the massive surge in its subsidiary, L&T Technology Services.

Bharti Airtel rose 0.17% to ₹1,895, attracting steady institutional buying support throughout the day. Brokerages like Motilal Oswal and Nomura continue to anticipate a potential telecom tariff hike around 15% in the coming months, which kept investor sentiment positive on Airtel's cash flow and margin expansion.

Cipla gained 1.29% to ₹1,330.90 as the pharmaceutical sector saw selective stock-specific buying interest ahead of its upcoming July-September quarter earnings results scheduled for October 27, 2026. Healthcare stocks were heavily favoured by investors looking for defensive positions amid high global market volatility.

ICICI Bank added 0.97% to reach ₹1,398.50, remaining one of the few banking heavyweights to trade in the green, driven by strong follow-through buying after its July-September quarter's financial results.

Nestle India declined 2.78% to ₹1,189.90, emerging as the top laggard on the Nifty 50 due to FSSAI notices regarding misleading product claims and an ongoing senior management reshuffle.

Coal India dropped 1.21% to ₹402.55, caught in the wider market correction that dragged down major state-owned enterprises. The miner witnessed sustained selling pressure as broader market sentiment turned highly cautious.

Tata Motors Passenger Vehicles fell 2.71% to ₹269.50, tracking significant weakness across the broader Nifty Auto index, and as its consolidated net profit dropped sharply due to margin pressures and rising commodity and operational costs.

Power Grid Corporation slipped 1.49% to ₹248.40, reversing some of its recent strong gains in the utilities sector. The stock was dragged lower by a broad-based unwinding of long positions across major large-cap infrastructure names.

HDFC Bankdeclined 1.82% to ₹694.05, weighing heavily on the financial sector and dragging down the benchmark indices primarily due to reports of an internal investigation into alleged insider data leaks, combined with lingering post July-September quarterly earnings pressures.

Futures & Options
The Nifty October 2026 futures contract closed at 22,723.10, a premium of 35.45 points over the Nifty 50's cash market close of 22,687.65. The benchmark index fell 123.70 points, or 0.54%, during the session.

India VIX, a gauge of expected near-term volatility, rose 0.90% to 15.82. HDFC Bank, Reliance Industries, and Axis Bank were the most-traded individual stock futures contracts on the NSE. The October 2026 F&O contracts will expire on 27 October.

Bonds
Indian government bond yields rose on Thursday as crude oil prices climbed, and traders built short positions ahead of Friday's gilt auction. The benchmark 6.94%, 2036 bond yield ended at 7.4596%, up from 7.4427% on Wednesday.

Brent crude rose more than 3% to $112 a barrel, keeping concerns about imported inflation and the domestic interest rate outlook in focus. The 10-year US Treasury yield eased slightly to 5.07%, limiting the pressure on Indian bonds.

The government will auction 330 billion rupees of bonds on Friday, comprising 190 billion rupees of the 6.53%, 2031 bond and 140 billion rupees of the 7.71%, 2066 bond. Traders are positioned for the auction, expecting bonds to be offered at cheaper prices, pushing yields higher.

Forex
The Indian rupee fell 0.4% to 94.8175 per US dollar on Thursday, snapping an eight-session winning streak as rising oil prices and a broader risk-off move in global markets weighed on the currency. Brent crude climbed to its highest level since May amid escalating concerns over conflict in West Asia.

The rupee had earlier strengthened to its highest level in more than six weeks, supported by foreign inflows linked to Jio Platforms' IPO and the Reserve Bank of India's defensive measures. However, gains faded in the second half as oil prices rose and broad-based dollar demand emerged in the domestic market.

Crypto
The cryptocurrency market fell on Thursday as risk aversion linked to technology stocks and escalating geopolitical tensions weighed on digital assets. Rising oil prices above $112 a barrel and weakness in equity futures added to selling pressure, limiting the market's recovery.

Bitcoin traded around $82,550, down roughly 1.5% to 2%, after failing to sustain a rally towards $85,000. Near-term support lies around $81,000-$82,000 with spot Bitcoin ETF inflows providing some support. Ethereum traded near $2,428, tracking losses across major altcoins. Its recovery remained weaker than Bitcoin's, with support around $2,300-$2,400 and resistance near $2,500.

US Stock Futures
US stock futures fell on Thursday as investors assessed quarterly earnings from major technology companies and rising oil prices. S&P 500 futures dropped 1.02%, Nasdaq-100 futures fell 1.8%, and Dow futures declined 0.66%.

Meta Platforms rose 0.74% in premarket trading after reporting better-than-expected revenue and issuing strong guidance for the current quarter. Tesla fell 4.59% despite reporting better-than-expected third-quarter revenue and earnings. Global markets also weakened as higher oil prices added to investor caution.

US Treasury Notes
US Treasury yields edged lower on Thursday, with the benchmark 10-year yield falling about 6 basis points to 5.07% from 5.13% at Wednesday's close. The two-year Treasury yield also eased to 4.768%.

Yields remain elevated amid persistent inflation concerns, shifting interest rate expectations and macroeconomic uncertainty. Both short- and long-term Treasury yields are more than one percentage point above their levels a year ago, according to the supplied data.

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Indian Shares Fall for Third Day; Rupee Weak as Oil Surges to $112