Indian Shares Fall for Fourth Day as Oil Surge Lifts Bond Yields

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

Representational Photo

Istock.com

By Dehuti Jani

October 23, 2026 at 12:23 PM IST

Indian shares extended losses into the fourth session on Friday, giving up early gains as surging oil prices amid geopolitical tensions in West Asia weighed on risk appetite. Gains in information technology stocks, which outperformed after a global sell-off in AI-linked shares, were not enough to offset broader weakness.

The Sensex fell 125.56 points, or 0.17%, to 73,123.83, while the Nifty50 declined 87.65 points, or 0.39%, to 22,600.00. Shriram Finance, Adani Enterprises and JSW Steel were among the biggest Nifty 50 losers. Metal, realty and PSU bank stocks underperformed, while IT stocks recorded the least sectoral losses.

Broader markets saw sharper declines, with the Nifty MidCap 100 and Nifty SmallCap 100 falling 2.21% and 2.94%, respectively. Fifteen of the 16 major sectors ended lower, reflecting broad-based selling as Brent crude rose toward $114 per barrel on concerns over energy supply disruptions following Houthi attacks in Saudi Arabia.

The rupee weakened for a second straight session, ending 0.1% lower at 94.9400 per US dollar after touching an intraday low of 94.9725. The currency was little changed for the week, having given back gains made earlier as rising oil prices fuelled risk aversion.

Government bond yields edged higher after the market absorbed 330 billion rupees of government securities at the weekly auction. The 10-year benchmark 6.94%, 2036 bond yield closed at 7.4740% from 7.4596% on Thursday.

Top Movers of the Day

Tata Consultancy Services climbed 0.92% to ₹2,530, leading the Nifty IT index's strong performance. The software major saw robust buying interest as global markets shifted away from AI-related concerns and favoured established IT exporters.

Eternal surged 4.25% to ₹317.40 after the company reported a massive 92.3% year-on-year increase in net profit to ₹1.25 billion, alongside solid growth in core food delivery and Blinkit's quick-commerce operations.

Coforge fell 0.47% to ₹1,900.50, as the stock faced intermittent pressure and investor caution following governance uncertainty triggered earlier in September by the sudden resignation of Chairman and Independent Director O.P. Bhatt after an internal audit flagged disclosure gaps in a board evaluation process.

Infosys ended nearly flat at ₹1,153.80 as investors positioned themselves ahead of the quarterly financial results and board meeting. Expectations surrounding the company's decision on an interim dividend boosted market sentiment.

Zetwerk Manufacturing Businesses plunged 13.02% to ₹138.30 after its stock market debut due to widening financial losses, lofty valuations, and a mismatch in investor demand. Heavy volume indicated aggressive profit-booking and institutional unwinding.

Swiggy tumbled 16.75% to ₹176, facing severe selling pressure after reportedly posting a net loss of 9.22 billion rupees for the second quarter. The disappointing earnings triggered a sharp downward correction in the stock.

PC Jeweller declined 0.33% to ₹18.01, standing out among the most actively traded counters by volume. The stock faced downward pressure as investors withdrew cash in response to broader market weakness.

Tata Steel fell 2.7% to ₹165.67, leading the losses in the Nifty Metal index. Investors remained cautious following recent July-September business and production updates that highlighted continued pressure on global operational volumes even as domestic Indian crude steel output showed year-on-year growth.

Hindalco Industries dropped 1.78% to ₹869.85, caught in the wider correction impacting industrial commodities. Sector-wide weakness hit metal counters, with peers like NALCO and Vedanta also posting declines amid softening international aluminium trends and supply-side headwinds.

Futures & Options
The Nifty October futures contract closed at 22,589, at a discount of 11 points to the Nifty 50 cash market close of 22,600. The benchmark index fell 87.65 points, or 0.39%, on Friday.

India VIX, a gauge of expected near-term market volatility, rose 6.32% to 16.76. HDFC Bank, Reliance Industries and Infosys were the most-traded individual stock futures contracts on the NSE. The October 2026 F&O contracts expire on 27 October.

Bonds
Indian government bond yields edged higher on Friday as rising crude oil prices and fresh debt supply weighed on sentiment. The 10-year benchmark 6.94%, 2036 bond yield ended at 7.4740% from 7.4596% on Thursday.

The market absorbed 330 billion rupees of government securities at the weekly auction, with cut-offs broadly in line with expectations, limiting losses. Traders squared off positions after auction-related caution eased, while short-covering in five-year gilts and buying by state-owned banks near the 7.47%-7.48% yield area helped cap the rise in yields.

Forex
The Indian rupee ended lower on Friday as rising crude oil prices weighed on the currency, while suspected dollar-selling intervention by the Reserve Bank of India helped limit losses, forex dealers said. The rupee closed at 94.9400 per US dollar, compared with 94.8175 on Thursday, after trading in a range of 94.7600-94.9750.

Brent crude rose to $114.43 per barrel from $113.17 on Thursday, extending a rally driven by escalating tensions in West Asia and concerns over supply disruptions. Houthi attacks on Saudi Arabia and risks to energy infrastructure and shipping routes lifted the oil risk premium, with Brent touching its highest level since early May. Higher crude prices could increase India's import bill, dollar demand and inflationary pressures.

Crypto
The cryptocurrency market remained under pressure on Friday as investors rotated away from risk assets amid a pullback in technology stocks and elevated crude oil prices. Bitcoin traded around $81,820, down about 0.8% over 24 hours, after touching an intraday low of $81,074. The $81,000 level remains a key near-term support, while whale accumulation and institutional ETF activity may provide some cushion against further declines.

Ethereum traded around $2,400, continuing to underperform Bitcoin. The token remained near its $2,350-$2,400 support zone, with resistance around $2,500 as broader risk aversion limited buying interest.

US Stock Futures
US stock futures slipped on Friday as investors reassessed the artificial intelligence trade following a sell-off in technology shares. S&P 500 futures fell 0.18%, Dow futures declined 291 points, or 0.55%, while Nasdaq-100 futures hovered just below the flatline.

Concerns over AI spending weighed on technology stocks, with the US tech sector falling 3% in the previous session. Nvidia dropped 4.4%, Alphabet lost 3.2% and Advanced Micro Devices declined 8.1%, as selling spread across the sector.

US Treasury Notes
US Treasury yields edged higher on Friday, with the 10-year note yield recovering to 4.982% after its biggest one-day fall since March 2023. The yield remained just below the 5% mark as investors assessed fiscal uncertainty in France, concerns over debt-funded artificial intelligence spending and rising oil prices amid geopolitical tensions in West Asia.

The two-year Treasury yield held around 4.66%, with investors positioning ahead of the Federal Reserve’s upcoming interest rate decision.

Top News

Printing is Disabled

Indian Shares Fall for Fourth Day as Oil Surge Lifts Bond Yields