Sensex, Nifty Erase Early Gains as Crude Rises; IT Stocks Rally

The Sensex fell 143.21 points to 73,709.69 and the Nifty 50 lost 0.34% on Oct. 21, 2026, after an early rally faded; the Nifty IT index rose 2.88%.

Oct 21, 2026 - 12:23

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India's main equity benchmarks closed lower on Wednesday, October 21, 2026, after giving up a strong early advance, as higher crude oil prices and foreign investor selling outweighed a rally in information technology shares and heavy demand for the Jio Platforms initial public offering.

The BSE Sensex ended at 73,709.69, down 143.21 points or 0.19%, while the NSE Nifty 50 fell 77.60 points, or 0.34%, to 22,811.35, India Today reported. Both indexes had been up about 1% early in the session, according to a Reuters report carried by Business Recorder. India Today said the Sensex reached an intraday high of 74,682.19, a gain of more than 800 points from its previous close, before reversing.

IT shares buck the decline

Information technology was the strongest sector of the day. The Nifty IT index rose 2.88%, with HCLTech up 3.40%, Infosys up 3.31%, Tech Mahindra up 3.21% and TCS up 2.68%, according to India Today. Reuters reported that L&T Technology Services jumped 10.5% after reporting higher revenue and profit for the September quarter, and cited Jefferies as saying steady earnings and shifting global sentiment on AI spending could lead to a re-rating for some IT stocks.

Broad selling elsewhere

Outside of IT, most sectors finished lower. India Today reported that the Nifty Auto index fell 1.54%, the Nifty Metal index dropped 1.71%, the Nifty Realty index lost 1.25% and the Nifty Financial Services index declined 0.96%. Private-sector bank shares fell 1.05% as a group.

Among Sensex constituents, Bajaj Finance was the largest decliner, down 3.33%, followed by Eternal (down 2.71%), Trent (down 2.32%), Axis Bank (down 2.11%) and Maruti Suzuki (down 1.94%). Reuters reported that Bajaj Finance, India's largest non-bank lender, fell after flagging early signs of stress in its loans against gold.

Smaller companies saw steeper losses. The Nifty Smallcap 100 dropped 2.37% and the Nifty Midcap 100 fell 1.58%, India Today reported. India VIX, a measure of expected volatility, rose 6.29% to 15.70.

Jio Platforms IPO draws strong demand

The session coincided with the opening of the Jio Platforms IPO. Reuters reported that the $3.2 billion offering, India's largest share sale and the first from Mukesh Ambani's Reliance group in two decades, was fully subscribed within two hours of public bidding opening. Kranthi Bathini, director of equity strategy at WealthMills Securities, attributed the response to Reliance's pedigree and Jio's status as a household name, according to the report.

Oil and foreign flows in focus

Crude prices were a central concern for Indian markets, because the country imports most of its oil. Reuters reported that Brent crude futures rose 1.5% to more than $110 a barrel during the Indian session on Middle East supply fears and declining U.S. inventories. Higher oil prices add to India's import bill, put pressure on the fiscal deficit and weigh on corporate margins, the report noted.

India Today reported that foreign institutional investors had been net buyers in the cash market in the previous session, but that persistent foreign selling through much of 2026 has left Indian shares sensitive to global sentiment. Vinod Nair, head of research at Geojit Investments, said elevated crude prices and continued foreign selling overshadowed optimism around India-US trade negotiations, according to India Today. VK Vijayakumar, chief investment strategist at Geojit Financial Services, told Reuters that elevated Brent prices and U.S. bond yields were keeping the market under pressure.