Indian equity indices extended losses to a third session on Wednesday as a global bond rout, rising crude oil prices and cautious rollover into the October derivatives series prompted a broad unwinding of bullish positions and fresh short buildup. The Nifty50 fell 95.75 points, or 0.42%, to 22,620.45, while the Sensex declined 48.78 points, or 0.07%, to 72,480.29.

The September derivatives series highlighted the shift in market positioning, with the Nifty 50 falling 6.7%, its worst performance among Asian markets. The Bank Nifty declined 5.7% and contributed the most to the benchmark's losses. Three brokerages said rollover data showed bearish positions were not only built during September's selloff, but were also largely carried into the new series, pointing to a cautious start to October.

Oil prices rebounded as hopes of a resolution between the US and Iran faded, adding to pressure on equities. Apollo Hospitals Enterprise, Max Healthcare Institute and BSE were the top Nifty 50 losers. In the broader market, the Nifty MidCap 100 rose 0.02%, while the Nifty SmallCap 100 gained 0.27%. Nifty Realty, Nifty Private Bank and Nifty Media rose the most, while Nifty Healthcare, Nifty Pharma, Nifty Consumer Durables and Nifty Metal declined the most.

The rupee closed at 95.83 per US dollar, strengthening from 95.98 in the previous session. The currency fell 0.7% in September and 1.2% in the July-September quarter, with persistent intervention from the Reserve Bank of India helping limit steeper losses. Elevated crude prices and surging global bond yields remained key headwinds for the currency and local assets.

Indian government bond prices gave up the day's gains as traders placed short bets ahead of Thursday's 330-billion-rupee government bond auction, although overseas cues provided some support. The benchmark 10-year gilt yield ended at 7.1879%, compared with 7.1628% at previous close.

Top Movers of the Day

Sun TV Network rose 7.73% to ₹596. The stock surged up to 20% intraday on rumours that Sun TV was preparing to demerge its sports business. However, Sun TV officially dismissed the demerger speculation. The stock also benefited from value-driven buying following multiple broker upgrades in the regional media space.

IRCON International gained 13.69% to ₹116.50. The stock rallied amid aggressive institutional accumulation after winning key railway infrastructure project packages. Optimism surrounding state capex allocations provided sustained tailwinds to the railway PSU basket.

AXISCADES Technologies rose 7.43% to ₹2,221 after announcing strategic aerospace and defence engineering design contract wins. Growing order book visibility prompted substantial momentum buying in midcap engineering services.

Infosys fell 1.98% to ₹995.30, touching near six-year lows amid broader IT stocks sell-off and brokerages flagged expectations of another weak quarter for large IT companies ahead of July-September quarter earnings.

Kotak Mahindra Bank rose 2.25% to ₹415.15 on strong institutional demand as private sector banks provided a cushion to benchmark indices during mid-day trade. The rally was driven by short-covering and expectations of stable credit growth.

Tata Steel closed down 1.23% at ₹185.69 driven by continued geopolitical tensions and fluctuation in crude oil prices. The counter witnessed foreign institutional investor selling today.

Max Healthcare Institute fell 5.81% to ₹925 under heavy institutional profit-booking after a strong multi-week run near all-time peak valuations. Broad weakness across hospital and healthcare stocks dragged the counter further in afternoon trade.

Dr. Reddy's Laboratories declined 2.13% to ₹1,185.20 as regulatory scrutiny and pricing pressure in US generics weighed on sentiment. Defensive flows reversed away from major pharma names into outperforming midcap industrial sectors.

PB Fintech plunged 2.03% to ₹1,059.10, extending its sharp sell-off following the proposed IRDAI revisions to insurance commission distribution structures. Weakness persisted over worries that margin compression could hit online aggregators hardest.

Tata Motors Passenger Vehicles rose 0.43% to ₹282.15 amid cautious wholesale dispatch data and near-term moderation in entry-level vehicle inquiries. Investors turned cautious ahead of upcoming monthly auto sales figures.

ONGC declined 2.78% to ₹223.60 alongside choppy international crude oil benchmarks and on continued uncertainty surrounding windfall tax adjustments. Energy majors saw mild profit-taking after outperforming during earlier crude supply spikes.

Trent fell 0.65% to ₹2,618 under selling pressure amid stretched valuation multiples following recent gains. Analysts flagged potential short-term margin compression from aggressive store network expansions.

Futures & Options
The Nifty October 2026 futures closed at 22,700, a premium of 79.55 points compared with the Nifty's closing at 22,620.45 in the cash market. In the cash market, the Nifty 50 index dropped 95.75 points or 0.42% to 22,620.45.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 0.61% to 13.50. HDFC Bank, Infosys, and BSE were the top-traded individual stock futures contracts in the F&O segment of the NSE. The October 2026 F&O contracts will expire on 27 October 2026.

Bonds
Indian government bond yields rose on Wednesday as traders placed short bets ahead of Thursday's 330-billion-rupee gilt auction, while overseas cues provided some support. The benchmark 10-year gilt yield rose to 7.1879% from 7.1628% at the previous close.

Yields rose further after cutoff yields at the 240-billion-rupee Treasury bill auction came in higher than expected. The Reserve Bank of India set the cutoff yield at 5.52% for the 91-day T-bill, 5.96% for the 182-day paper and 6.18% for the 364-day paper. The cutoffs were 9-14 basis points higher than last week's levels, compared with the 7-8 basis-point increase expected in a 91bps poll.

Traders demanded higher yields amid expectations of a rate hike next week and further liquidity absorption by the RBI, prompting short-term bonds to give up their gains.

Forex
The Indian rupee closed at 95.83 per US dollar on Wednesday, compared with 95.98 in the previous session. The rupee fell 0.7% in September and 1.2% in the July-September quarter, with persistent intervention from the Reserve Bank of India helping limit steeper losses.

The rupee navigated a volatile quarter in which benchmark Brent crude prices swung between $70 a barrel and nearly $110 as the conflict between the US and Iran ebbed and flowed. The RBI's monetary policy decision next week is expected to be a key driver, with markets widely anticipating a 25-basis-point rate hike.

Crypto
The global crypto market remained subdued on Wednesday as investors awaited upcoming US Core PCE inflation data and assessed the impact of elevated US Treasury yields on risk appetite.

Bitcoin held around $83,400, with the $82,000-$83,000 zone providing near-term support, while Ethereum traded near $2,690 as it faced resistance around $2,700. Bitcoin continued to attract steady spot ETF inflows, while Ethereum ETF inflows weakened after a seven-day run, keeping broader crypto sentiment cautious.

US Stock Futures
US stock futures edged higher early Wednesday after equities came under pressure in the previous session as Treasury yields climbed to fresh multidecade highs. Dow Jones Industrial Average futures rose 0.46%, or 239 points, while S&P 500 futures gained 0.27% and Nasdaq-100 futures added 0.22%.

Investors awaited the latest inflation signals as higher bond yields continued to weigh on equities. Markets also pared back expectations of a Federal Reserve rate hike at its October meeting to roughly 50%, from more than 70% a day earlier.

US Treasury Notes
US Treasury note yields declined on Wednesday, retreating from Tuesday's highs as comments from Federal Reserve officials tempered expectations of further interest-rate hikes. The 10-year Treasury yield fell 3 basis points to 5.224%, while the 30-year yield declined 4 basis points to 5.559%, after touching a 24-year high of 5.621% on Tuesday.

Fed speakers offered a mixed outlook, with Presidents Goolsbee and Musalem highlighting near-term inflation risks from AI-related demand, while Governor Barr said further policy adjustments would be needed to bring inflation back to target. New York Fed President John Williams said there was “no need for urgency” following the September rate hike.

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