Stock Market Under Pressure as Crude Oil Prices Surge

Indian stock markets are facing mounting pressure amid rising crude oil prices, global uncertainty and continued selling by foreign portfolio investors (FPIs). Market experts advise traders and investors to remain cautious until a strong recovery becomes visible, focus on carefully selected stocks and avoid taking excessive risks. Several domestic and international factors are expected to influence market direction this week, including corporate earnings for the September quarter, the US Federal Reserve’s monetary policy announcement, Reliance Jio’s stock market listing, crude oil prices and developments in West Asia. Domestic economic indicators, including September industrial production and manufacturing data scheduled for October 28, will offer insights into the performance of key sectors amid global pressures. Fiscal deficit figures, bank credit and deposit growth, and foreign exchange reserve data are also due later in the week. Around 156 companies, including TVS Motor, Asian Paints, Trent, Sun Pharma, Bharat Electronics, Indian Oil, Bank of Baroda and GAIL India, are expected to announce their quarterly results. Investors will closely examine revenue growth, profit margins and management guidance, particularly after some major banking stocks faced corrections following results that fell short of expectations.

Global developments are also likely to play a significant role in determining market sentiment. The US Federal Reserve’s policy decision is scheduled for October 28, with markets widely expecting interest rates to remain unchanged. However, investors will closely monitor the Fed’s policy statement and the chairperson’s comments for clues about the future direction of interest rates. The European Central Bank and the Bank of Japan are also scheduled to announce their policy decisions on October 29 and 30, respectively. Meanwhile, escalating tensions in West Asia and concerns over possible disruptions to energy supplies through the Strait of Hormuz have pushed crude oil prices higher. Brent crude has been trading at elevated levels, raising concerns for oil-importing countries such as India. For the Nifty, the 22,300 level is considered an immediate support zone; a break below it could expose the index to further declines towards 22,000. On the upside, the 22,850–22,900 range is viewed as a key resistance zone. If the index fails to cross this barrier, experts suggest that traders remain cautious during market rallies. A sustained rise in buying and a decisive breakout, however, could open the way towards 23,000–23,150.

Indian equities ended last week on a negative note, despite trading for only four sessions. The Sensex fell by 1,605 points, while the Nifty declined by 546 points, as global uncertainty and a sharp rise in Brent crude prices weakened investor sentiment. The impact extended beyond benchmark indices to mid-cap and small-cap stocks, while IT shares showed some resilience. Reliance Jio’s listing, scheduled for October 28, is another major event attracting market attention. Its public issue reportedly received 22.19 times subscription, drawing substantial investor funds into the primary market and contributing to liquidity pressure in secondary-market trading. With the listing approaching, investors will watch whether the release of funds tied up in the IPO and the market’s response to Jio shares provide relief. Foreign investors sold equities worth ₹48,056 crore during October up to the 23rd, amid inflation concerns, weak corporate results and geopolitical uncertainty. Their net withdrawals from Indian markets in 2026 have reportedly reached ₹3.08 lakh crore, nearly twice the ₹1.66 lakh crore withdrawn during the whole of 2025. Although foreign selling eased somewhat last week, investors will closely monitor whether that trend continues or selling pressure intensifies again.