Brent jumps to $115.47 as India's Sensex falls 0.48%
Key Facts
India's Sensex fell 352.64 points, or 0.48%, to close at 73,246.03 on 28 October 2026, while the Nifty 50 declined 50.90 points, or 0.22%, to 22,698.85. The drop came in a session when Brent crude futures rose 1.4% to $115.47 a barrel at 0435 GMT. Reuters linked the rise in oil to renewed supply concerns after the Houthis said they had targeted a Saudi refinery. In the Indian market, pressure was concentrated in technology, oil and gas shares, as investors remained cautious ahead of the Federal Reserve decision. Sector moves showed a widening gap between the major indexes and some other parts of the market.
The information technology and oil and gas indexes each fell about 2%, according to market data cited by Moneycontrol. By contrast, the auto and pharmaceutical indexes each rose about 1%, while consumer durables and media indexes gained about 1%. Gains extended beyond these sectors: the mid-cap index rose 0.4% and the small-cap index gained 0.9%. Mid- and small-cap stocks therefore outperformed the two main indexes during the session. The Sensex closed at 73,598.67 on 27 October and then at 73,246.03 the following day, while the Nifty fell from 22,749.75 to 22,698.85.
Oil rose after the Iran-aligned Houthis said they had targeted Saudi Arabia's largest oil refinery with a missile on Tuesday. Saudi authorities did not immediately confirm the strike, Reuters reported, and the refinery has capacity of 550 thousand barrels per day. At 0435 GMT on 28 October, Brent futures rose 1.4% to $115.47 a barrel. Reports of the attack brought supply risks back to the forefront of trading, as crude's rise coincided with a roughly 2% decline in India's oil and gas sector index.
On the domestic activity front, India's industrial production grew 6.7% year on year in September 2026, according to data from the Ministry of Statistics and Programme Implementation. The reading was below August's 8.0% growth and also fell short of the 7.3% expected by economists polled by Reuters. Industrial growth therefore slowed from the previous month and missed market estimates. Cumulative growth for April to September, however, was 6.8%, compared with 4.4% in the same period of the previous year. September data show several industrial activities continued to support production despite the overall rate slowing from August.
Within manufacturing, the manufacture of motor vehicles, trailers and semi-trailers recorded annual growth of 19.0% in September. Electrical equipment output rose 33.9%, while rubber and plastic products grew 19.9%, according to India's Ministry of Statistics. The ministry listed these activities among the largest positive contributors to the month's reading. These industrial gains coincided with a roughly 1% rise in India's auto stocks index during the 28 October session. The main indexes, meanwhile, faced pressure from losses in technology, oil and gas, as investors awaited the Federal Reserve meeting.
The Federal Reserve's Federal Open Market Committee met on 27 and 28 October, with its press release scheduled for 28 October, according to the board's official calendar. At its previous meeting on 15 and 16 September, the committee raised its target interest rate range by a quarter of a percentage point to 3.75%-4%. Investor caution in India ahead of the meeting was among the factors surrounding market performance, according to a Moneycontrol report. India's next industrial production reading, for October, is scheduled for release on 30 November 2026. That reading will provide a further indication of the path of industrial activity after September's 6.7% growth.