Sensex, Nifty trade lower amid oil price concerns; chemical stocks slump

The key equity benchmarks extended losses in afternoon trade, weighed down by elevated crude oil prices. Broader market also slumped. Chemical stocks witnessed sharp selling pressure, while IT shares bucked the weak market trend. The Nifty traded below the 22,750 mark after hitting an intraday high of 23,120.

At 13:30 IST, the S&P BSE Sensex declined 389.96 points or 0.53% to 73,462.94. The Nifty 50 index lost 153.50 points or 0.67% to 22,735.45.

The broader market underperformed the frontline indices. The Nifty MidCap 150 Index declined 1.90% and the Nifty SmallCap 250 Index fell 2.35%.

The market breadth was weak. On the BSE, 858 shares rose and 3,468 shares fell. A total of 201 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 8.14% to 15.98.

Buzzing Segment:

The Nifty Chemicals index declined 2.52% to 27,209.85. Himadri Speciality Chemical plunged 9.38%, Deepak Fertilisers and Petrochemicals Corporation fell 4.71%, Jubilant Ingrevia declined 4.28%, Tata Chemicals dropped 3.87%, UPL lost 3.75%, Solar Industries India shed 3.49%, Gujarat Fluorochemicals fell 3.41%, Aarti Industries declined 3.35%, PCBL dropped 3.27% and Deepak Nitrite fell 2.99%.

PI Industries declined 2.94%, Swan Corp fell 2.93%, Sumitomo Chemical India shed 2.60%, SRF dropped 2.02%, Navin Fluorine International declined 1.77%, Atul fell 1.40%, Linde India lost 1.33%, Chambal Fertilisers and Chemicals declined 0.85%, Pidilite Industries shed 0.56% and Coromandel International fell 0.28%.

Stocks in Spotlight:

Reliance Industries rose 0.58% after the IPO of its digital and telecom subsidiary, Jio Platforms, received a strong response. The issue was subscribed 1.67 times as of 13:15 IST on 21 October 2026.

The IPO opened for subscription on 21 October 2026 and will close on 23 October 2026. The company has fixed the price band at Rs 1,065-1,119 per share, with a lot size of 12 shares. The Rs 30,213-crore IPO comprises an entirely fresh issue of 27 crore equity shares.

Global Cues:

Most European indices advanced on Wednesday, stabilising after two volatile sessions as strong corporate earnings supported sentiment. However, political turmoil in France and caution ahead of US technology earnings limited gains.

UK consumer price inflation rose to 3.5% in September from 3.1% in August, exceeding the 3.4% forecast and reaching its highest level since October 2025, according to the Office for National Statistics.

In the Middle East, Iran?s Foreign Minister Abbas Araghchi said the Strait of Hormuz would remain closed until Washington accepted Tehran?s conditions. Indirect talks between the two sides continued through Pakistan and Qatar. US President Donald Trump told a rally that the war would end ?one way or the other very quickly? and predicted that oil prices would fall sharply afterwards.

Asian equity indices traded mixed on Wednesday. Japan?s exports rose 16.7% year-on-year in September, marking the 13th consecutive month of growth, although the increase fell short of market expectations. Exports to the US climbed 22.9%, while shipments to China increased 8.6%. Japan?s trade deficit narrowed to 536.6 billion yen.

Overnight, US equity markets ended mixed on Tuesday, 20 October 2026. The Dow Jones Industrial Average advanced 1.02% to 52,495.88, while the S&P 500 gained 0.28% to 7,712.57. The Nasdaq Composite edged down 0.02% to 26,424.82 as weakness in technology stocks offset gains elsewhere.

Healthcare and industrial stocks supported the Dow?s advance as investors assessed corporate earnings and reassessed technology valuations. Concerns over the costs and potential returns of artificial intelligence investments continued to weigh on sentiment.

In after-hours trading, SpaceX shares rose more than 8% after the company reported a 161% year-on-year increase in third-quarter revenue to $14.58 billion. Net income reached $4.4 billion, compared with a loss of $1.1 billion a year earlier, while AI revenue increased more than ninefold. Netflix shares fell 6% amid concerns over slowing revenue growth.

On the economic front, US housing starts declined 5.2% month-on-month in September, while building permits fell 0.2%. Single-family housing starts dropped 4.6% to an annualised rate of 859,000 units. Single-family permits declined 4% to 845,000, their lowest level in three and a half years, signalling continued weakness in the housing sector.

Meanwhile, crude oil prices rose on Wednesday amid renewed concerns over supply disruptions in the Middle East. Brent crude gained 85 cents to $109.64 a barrel. Prices fluctuated on Tuesday following conflicting reports about progress in US-Iran diplomatic efforts. Threats to energy infrastructure and shipping routes continued to keep supply risks in focus.

Corporate earnings are expected to remain a key driver of global markets this week. Investors will assess whether earnings growth can justify elevated equity valuations amid high borrowing costs and uncertainty over AI spending. Developments in the Middle East and movements in crude oil prices are also likely to influence market sentiment.

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