Indices edge lower in early trade; breadth weak

The key equity benchmarks traded lower in early trade on Monday, as investors remained cautious amid persistently elevated crude oil prices, despite a modest easing in rates. Market sentiment was also influenced by the ongoing Q2 earnings season, with the Nifty slipping below the 22,450 mark.

All sectoral indices on the NSE traded in negative territory, with FMCG, PSU Bank and auto stocks leading the decline, reflecting broad-based selling pressure across the market.

At 09:25 IST, the barometer index, the S&P BSE Sensex declined 549.85 points or 0.73% to 72,619.58. The Nifty 50 index fell 186.70 points or 0.83% to 22,412.30.

The broader market underperformed the frontline indices. The Nifty MidCap 150 Index declined 1.09% and the Nifty SmallCap 250 Index fell 1.42%.

The market breadth was weak. On the NSE, 695 shares rose and 2,266 shares fell. A total of 93 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 887.65 crore, while domestic institutional investors (DIIs) were net buyers of Rs 3,235.36 crore in the Indian equity market 23 October 2026, according to provisional data.

Stocks in Spotlight:

Infosys declined 1.52%. The company reported a 0.7% rise in consolidated net profit to Rs 7,823 crore in Q2 FY27 compared with Rs 7,249 crore in Q1 FY27. Revenue from operations increased 2.14% QoQ to Rs 40,719 crore in Q2 FY27. Meanwhile, the company's board declared an interim dividend of Rs 26 per equity share for FY27. The record date has been fixed as 3 November 2026, and the dividend will be paid on 11 November 2026.

IndusInd Bank rose 0.16%. The bank reported a standalone net profit of Rs 1,176.1 crore in Q2 FY27 as against a net loss of Rs 444.8 crore in Q2 FY26. Net interest income rose 3.6% to Rs 4,569.5 crore. Operating profit increased 37% to Rs 2,778 crore, while provisions and contingencies declined 53.6% to Rs 1,216.2 crore. Gross NPA declined to 2.73% from 3.25% in Q1 FY27, while net NPA fell to 0.83% from 0.95%.

Numbers to Track:

The yield on India's 10-year benchmark federal paper remains unchanged at 7.473.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 94.9275 compared with its close of 94.9300 during the previous trading session.

MCX Gold futures for the 4 December 2026 settlement added 0.17% to Rs 1,42,272.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.04% to 101.65.

The United States 10-year bond yield declined 0.50% to 4.961.

In the commodities market, Brent crude for the December 2026 settlement declined $2.59 or 2.22% to $114.13 a barrel.

Global Markets:

Dow futures rose 144 points, signalling a higher opening for US stocks.

Asian indices traded lower on Monday as investors weighed elevated oil prices, geopolitical risks and a busy week of central bank decisions and corporate earnings.

Brent crude eased below $115 a barrel after hitting a six-month high, offering some relief following last week's surge. The retreat followed reports of diplomatic efforts involving Qatar, Iran and the United States to ease regional tensions.

The regional session followed a lower close on Wall Street on Friday, 23 October, as rising energy costs and concerns over artificial intelligence investment weighed on sentiment. Investors are also preparing for quarterly results from major US technology companies, including Alphabet, Microsoft and Amazon, which could offer fresh insights into AI-related spending and returns.

The Dow Jones Industrial Average fell 652.82 points, or 1.23%, to 52,215.16 on Friday. The S&P 500 declined 39.75 points, or 0.52%, to 7,623.68, while the Nasdaq Composite shed 53.52 points, or 0.21%, to 25,955.34.

Telecommunications stocks came under pressure after reports that SpaceX was exploring plans to launch a fourth US wireless carrier. AT&T and T-Mobile fell nearly 8% each amid concerns over increased competition.

Among individual stocks, Schlumberger gained about 7% following its quarterly results. American Express fell around 3.7% despite reporting higher quarterly profits and raising its full-year earnings forecast. The company also announced plans to cut 5% of its workforce, while its revenue missed market expectations.

On the economic front, the University of Michigan's final consumer sentiment index for October came in at 48.0, compared with 48.1 in September. Although the reading exceeded market expectations, sentiment remained near historically low levels. One-year inflation expectations rose to 4.7% from 4.6%, while five-year expectations increased to 3.5% from 3.4%. Persistent inflation concerns could complicate the Federal Reserve's policy outlook.

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