Nifty below 22,600; oil & gas stocks gain, pharma shares decline

The domestic equity benchmarks came under pressure in afternoon trade, as elevated crude oil prices and persistent foreign fund outflows weighed on sentiment. Investors tracked the ongoing Q2 earnings season amid concerns over rising wholesale inflation, which accelerated to 11.39% in September. The Nifty 50 traded below 22,600, with pharma and healthcare stocks declining, while oil and gas shares advanced amid strength in energy-related stocks.

At 13:35 IST, the S&P BSE Sensex fell 341.74 points or 0.47% to 72,692.04. The Nifty 50 index shed 125.35 points or 0.55% to 22,596.75.

In the broader market, the Nifty MidCap 150 index was flat, while the Nifty SmallCap 250 index advanced 0.09%.

Market breadth remained positive. On the NSE, 1960 shares advanced, while 1482 declined and 113 remained unchanged.

Economy:

India's wholesale price index (WPI) inflation accelerated to 11.39% in September 2026, from 9.92% in August, marking its highest level in the new series. The increase was driven by rising prices across major categories, with fuel and power inflation climbing to 25.9% from 22.9% in August. Inflation in food articles rose to 8.66% from 7.05%, while primary articles inflation increased to 8.67% from 7.76%. Inflation in manufactured products also accelerated to 9.76% from 8.37%. Core WPI inflation under the new series stood at 9.8%. The broad-based increase points to mounting wholesale price pressures, particularly from energy and manufacturing costs.

Buzzing Segment:

The Nifty Oil & Gas index rose 0.75% to 10,427.40, extending its 0.49% gain in the previous session.

Chennai Petroleum Corporation led the gainers, climbing 6.84%, followed by Oil India (1.25%), Petronet LNG (0.95%) and Reliance Industries (0.91%). Other gainers included Adani Total Gas (0.84%), Indian Oil Corporation (0.71%), Mahanagar Gas (0.47%), Castrol India (0.42%) and Oil & Natural Gas Corporation (0.37%).

On the losing side, GAIL (India) declined 1.02%, while Hindustan Petroleum Corporation slipped 0.03%.

Aegis Logistics surged 6.9% after the company approved the proposed acquisition of an 89.8% stake in Dubai-based Tristar Holdings. The acquisition carries an equity consideration of $809 million, including contingent payments and interest on deferred consideration.

Stocks in Spotlight:

Hero Motors rallied 4.29% after the company reported a strong financial performance for the quarter ended 30 June 2026. The company?s consolidated net profit surged 115.64% to Rs 10.20 crore in Q1 FY27 compared with Rs 4.73 crore in Q1 FY26. Revenue from operations jumped 24.86% YoY to Rs 319.32 crore in the quarter ended 30th June 2026.

Canara Bank rose 3% after the company's standalone net profit jumped 8.40% to Rs 5,174.76 crore on a 6.05% increase in total income to Rs 40,931.19 crore in Q2 FY27 over Q2 FY26.

Global Cues:

European equities advanced on Wednesday, supported by gains in technology stocks after semiconductor equipment maker ASML raised its full-year sales forecast and projected stronger-than-expected fourth-quarter revenue amid robust AI-related demand. ASML shares rose, lifting peers including ASM International, BE Semiconductor and Infineon Technologies.

The rally helped markets absorb comments from European Central Bank President Christine Lagarde, who said France must address its debt challenges through domestic fiscal policies rather than rely on central bank intervention. Investors also awaited US inflation data for clues on the Federal Reserve's interest-rate outlook.

Asian market traded mixed on Wednesday, as investors assessed the technology-led selloff on Wall Street and awaited key US inflation data. Market sentiment remained cautious amid concerns over elevated crude oil prices and intensifying competition in the semiconductor industry.

Singapore's economy expanded 5.4% year on year in Q3 2026, moderating from 6.2% growth in the previous quarter, according to advance estimates released by the Ministry of Trade and Industry (MTI) on Wednesday. On a seasonally adjusted quarter-on-quarter basis, GDP grew 1.1%, compared with 1.5% in Q2. Manufacturing output increased 7.5% year on year, slowing from 12.9% growth in the preceding quarter.

US stocks ended lower on Tuesday as weakness in technology and semiconductor shares weighed on the broader market. The Dow Jones Industrial Average declined 0.35% to 51,670.10, while the S&P 500 slipped 0.02% to 7,805.45. The Nasdaq Composite fell 0.15% to 27,204.38. Investors also assessed corporate earnings and awaited US inflation data for clues on the Federal Reserve's interest-rate outlook.

New York Federal Reserve President John Williams said he still considered one more interest-rate hike in 2026 potentially appropriate but saw no current need for further increases in 2027. In an interview with Bloomberg News, Williams said his outlook remained dependent on incoming economic data and developments in inflation. His comments indicate his current assessment rather than a commitment by the Federal Reserve to a specific rate path.

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