Indian Tech Stocks Fall 3.1% as Oil Weighs and Investors Await Fed Decision

Key Facts

Indian stocks fell on Wednesday morning, October 28, with technology shares leading losses amid higher oil prices and ahead of the U.S. monetary policy decision, Reuters reported. Technology shares dropped 2.3% at the open, the biggest decline among sectors at that point. By 9:15 a.m. India time, the Nifty 50 was down 0.32% at 22,678 points, while the Sensex fell 0.47% to 73,253.44 points. The figures reflect different stages of the morning session, with the sector’s decline accelerating after its losses at the open.

Infosys was the biggest decliner among Nifty 50 stocks at that point, falling more than the other two technology services companies. Reuters said Indian IT companies generate a large share of their revenue in the United States, linking their performance to demand conditions there. The sector fell despite gains in U.S. stocks in the previous session, according to an HDFC SKY report. The timing and benchmarks differ: the earlier U.S. report recorded gains, while Indian stocks were falling in Wednesday morning trading.

Higher oil prices weighed on risk appetite in the Indian market, bringing supply disruption and inflation concerns back into focus, Reuters reported. The agency linked the decline in stocks to rising oil prices ahead of the Federal Reserve decision scheduled for later in the day. Small-cap shares rose 0.7% and mid-cap shares gained 0.1%, Reuters said. The moves show different performance across market segments, with benchmark indexes and major sectors under pressure while small- and mid-cap stocks posted modest gains.

The Federal Open Market Committee meeting was scheduled over two days, October 27 and 28, with a press conference on October 28, according to the Federal Reserve’s official calendar. Its most recent announced decision before the meeting raised the target range for the federal funds rate by a quarter percentage point to 3¾%–4% on September 16. Wednesday’s decision therefore remained a focus for markets and had not been announced when the morning trading snapshot was prepared. In India, the Ministry of Statistics scheduled the release of the September industrial production index for Wednesday, October 28. Investors were also watching Jio’s expected market listing during the day, Reuters reported.

Infosys’s results and financial guidance provide context for the stock’s performance, without establishing that they caused its decline in the session. The company reported second-quarter fiscal 2027 revenue of $5,145 million, up 1.5% year over year on a constant-currency basis, and an operating margin of 21.0%. Total contract value from large deals was $5.2 billion, of which 62% were net new deals, the company said. Infosys also lowered its fiscal 2027 revenue growth outlook to 1%–2% in constant currency, while maintaining its operating margin forecast at 20%–22%. The guidance puts the company’s performance against a backdrop of slower expected revenue growth, while the stock fell more than broader indexes in morning trading.