Sensex, Nifty open in red dragged by fall in IT stocks; Infosys down 5%

At around 9.27 am, the BSE Sensex was trading at 72,867.97, down 730.70 points or 0.99%. The NSE Nifty 50 stood at 22,563.30, falling 186.45 points or 0.82%.The stock market opened sharply lower on Wednesday, October 28, as heavy selling in IT stocks, rising crude oil prices and caution ahead of the US Federal Reserve’s policy decision weighed on investor sentiment. The much-awaited listing of Jio Platforms is also in focus.At around 9.27 am, the BSE Sensex was trading at 72,867.97, down 730.70 points or 0.99%. The NSE Nifty 50 stood at 22,563.30, falling 186.45 points or 0.82%.IT stocks led the losses, with the Nifty IT index down around 3.3%. Infosys fell 4.26%, while Mphasis declined 4.94%, HCLTech lost 3.07%, TCS dropped 2.98% and Tech Mahindra slipped 3.13%.Selling was also visible across several other sectors. Nifty FMCG fell 1.51%, while oil and gas declined 1.30%. Realty, financial services, private banks, pharma and metals were also trading in the red. The auto index was among the few sectors holding up, rising around 0.23%. Broader markets were relatively resilient, with the Nifty Smallcap 100 marginally higher, while midcap indices were lower. India VIX, the market volatility gauge, rose around 3.7%, signalling increased nervousness among investors.Crude oil prices climbed above $115 per barrel after an attack on a refinery in Saudi Arabia renewed concerns about energy supply disruptions and inflation. Higher oil prices are a concern for India because the country relies heavily on imported crude. Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the market had turned decisively weak amid indications of a sharp lower opening. He pointed to reports of possible renewed US strikes on Iran after the US midterm elections and Brent crude rising above $115 as key concerns for the Indian economy and markets.He added that the market would also focus on the Jio Platforms listing, given the strong demand from institutional investors during the IPO. Vijayakumar said a sustained recovery would depend partly on crude prices declining and foreign portfolio investors (FPIs) ending their persistent selling.Investors will also track the US Federal Reserve’s policy decision later in the day for clues on the interest-rate outlook and its implications for global markets.- Ends