Slight fall in Nifty, Sensex masks small-caps pain

SENSEX 73,709.69

 -143.21

NIFTY 22,811.35

 -77.60

CRUDEOIL 9,205.00

 -106.00

GOLD 146,006.00

 -513.00

SILVER 209,081.00

 -2,404.00

SENSEX 73,709.69

 -143.21

NIFTY 22,811.35

 -77.60

NIFTY 22,811.35

 -77.60

CRUDEOIL 9,205.00

 -106.00

CRUDEOIL 9,205.00

 -106.00

GOLD 146,006.00

 -513.00

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388 stocks hit new lows, volatility index climbs 6.3% to 15.7; information technology index makes strong gains

By Anupama Ghosh

Updated - October 21, 2026 at 09:58 PM.

Nifty IT rose 2.88% to an eight-month high, with Infosys, TCS and HCL Technologies all posting gains | Photo Credit: PRIMEIMAGES

The markets staged a strong opening on Wednesday but failed to hold ground, with benchmark indices reversing sharply through the session to close in the red for the second consecutive day. However, the fall in large-cap space has masked the severe blow in the broader market that bore the brunt of heavy sell-off. As many as 388 socks either hit 52-week low or multi-year lows as panic selling spread to mid-and-small-cap space.

The culprits were familiar — elevated crude oil prices, a weak earnings report from old economy sectors and private sector banks, and a liquidity squeeze due to the mega IPO of Jio Platforms.

The Nifty 50 closed at 22,811.35, down 77.60 points, after touching an intra-day high of 23,120.90 before retreating nearly 460 points to a low of 22,649.90. The Sensex settled at 73,709, down around 143 points. Bank Nifty slipped 0.92 per cent to close at 54,976.90, down 511 points.

The deep fall in Indian markets was despite positive global markets. Nikkei and Kospi surged sharply while European stocks opened in the green on Wednesday.

“Benchmark indices opened on a positive note, supported by strong buying in IT stocks and Reliance Industries, but selling pressure intensified as the session progressed,” said Ajit Mishra, SVP Research at Religare Broking, adding that selling was “particularly severe in the broader market”.

The Nifty Midcap 100 fell 1.58 per cent while the Nifty Smallcap 100 declined 2.37 per cent.

Broader sell-off

The market breadth remained overwhelmingly negative, with only 64 stocks closing higher against 431 in the red within the Nifty 500 universe. India VIX climbed 6.29 per cent to 15.7, signalling rising near-term uncertainty.

Brent crude’s climb above $110 per barrel was the dominant macro concern. Prices swung between $105.90 and $112 intraday on conflicting reports around Gulf supply disruptions before settling around $108.80. “With Saudi Arabia yet to confirm damage at Yanbu or Shaybah, the market continues to price the risk of disruption rather than verified supply losses,” noted Kaynat Chainwala, AVP Commodity Research at Kotak Neo.

On the earnings front, SML Isuzu hit a 10 per cent lower circuit after reporting a 44.5 per cent y-o-y drop in Q2 profit, while Vishal Mega Mart fell 6 per cent on margin pressure. Market participants also flagged that the ongoing Jio Platforms IPO also drained secondary market liquidity. As against the issue size of ₹30,230 crore, the IPO received bids for nearly ₹70,000 crore on day 1 of issue opening itself, with institutional investors making aggressive bids.

IT shines

The lone bright spot was IT. Nifty IT rose 2.88 per cent to an eight-month high, with Infosys, TCS and HCL Technologies all posting gains. L&T Technology Services surged 15 per cent after reporting a 66.8 per cent YoY jump in Q2FY27 net profit.

On the currency front, the rupee extended its winning streak to eight consecutive sessions, strengthening to 94.49 against the dollar — its highest in six weeks — supported by RBI intervention and foreign inflows into the primary market. Spot gold traded flat near $4,126 per ounce, while silver dipped to $57.10.

Looking ahead, the markets will take cues from the ongoing earnings season, weekly US crude inventory data, and developments in Gulf geopolitics. The September quarter results will remain the primary driver of stock-specific movement, with investors also tracking bond yields and institutional flows for broader directional signals.

Trading in derivative market also signals a cautious mood. Om Mehra, Technical Research Analyst, Samco Securities, said fresh Call writing was concentrated between 22,800 and 23,200, led by the 23,000 strike, while Put additions were modest between 22,600 and 22,750. The put-call ratio has eased to 0.7 from 0.88, indicating a clear tilt in favour of Call writers.

The near-term setup remains sideways till Nifty stays below 23,000, he said.

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Published on October 21, 2026

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