12-Oct-2026      15:55

Sensex, Nifty end with sharp losses; FMCG shares tumble

The key equity benchmarks ended with substantial losses on Monday. Investor sentiment remained cautious ahead of the release of India's inflation data later in the day. Although crude oil prices retreated, they remained above $105 a barrel, keeping inflationary concerns in focus. A sharp rise in Indian bond yields further weighed on market sentiment. The Nifty settled below the 22,400 level.

Market participants will monitor movements in the rupee and crude oil prices, along with quarterly earnings announcements. Mixed global cues, sustained foreign institutional selling and ongoing geopolitical uncertainties added to the cautious undertone.

FMCG, PSU Bank and IT shares declined while media, auto and realty shares advanced.

As per provisional closing data, the S&P BSE Sensex declined 547.65 points or 0.76% to 71,924.68. The Nifty 50 index dropped 157.10 points or 0.70% to 22,363.35.

The broader market outperformed frontline indices. The BSE 150 MidCap Index added 0.13% and the BSE 250 SmallCap Index jumped 1.08%.

The market breadth was positive. On the BSE, 2,300 shares rose and 2,153 shares fell. A total of 292 shares were unchanged.

The yield on India's 10-year benchmark federal paper jumped 1.18% to 7.388 compared with the previous session close of 7.302.

In the commodities market, Brent crude for December 2026 settlement rose 89 cents or 0.85% to $105.61 a barrel.

RBI Measures:

The Reserve Bank of India (RBI) has announced a special facility to meet the entire daily US dollar requirements of three public sector oil marketing companies ' Indian Oil Corporation (IOCL), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL). According to an RBI press release, the central bank will sell US dollars to the three companies through designated banks to meet their foreign exchange requirements. The facility will come into effect tomorrow and remain operational until further notice. The RBI said, the decision was taken following an assessment of prevailing market conditions and is aimed at facilitating the foreign exchange requirements of the three state-owned oil marketing companies.

In separate circulars, the RBI prohibited the rebooking of cancelled rupee-linked foreign exchange derivative contracts, while allowing rollovers on maturity subject to existing regulations. It also reduced the threshold for taking foreign exchange derivative positions without establishing underlying exposure from $100 million to $5 million, both for contracted exposures hedged through authorised dealers and for exchange-traded currency derivatives involving the rupee.

The Reserve Bank of India (RBI) has raised the minimum daily Cash Reserve Ratio (CRR) maintenance requirement for scheduled banks to 99% from 90%, effective from the reporting fortnight beginning October 16, 2026. Under the existing framework, banks are required to maintain at least 90% of the prescribed CRR on a daily basis, provided their average daily balance over the reporting fortnight meets the CRR requirement stipulated by the RBI.

Buzzing Index:

The Nifty FMCG Index tumbled 1.67% to 44,113.40. The index rallied 2.02% in the past trading session.

Dabur India (down 3.47%), ITC (down 3.29%), Colgate-Palmolive (India) (down 2.45%), Hindustan Unilever (down 1.91%), Godfrey Phillips India (down 1.72%), Varun Beverages (down 1.47%), Godrej Consumer Products (down 1.45%), Nestle India (down 1.05%), Britannia Industries (down 0.95%) and United Spirits (down 0.95%) declined.

Stocks in Spotlight:

Avenue Supermarts fell 4.49% after the company reported a 7.64% YoY increase and a 14.12% QoQ decline in standalone profit after tax to Rs 803.60 crore in Q2 FY27. Revenue from operations rose 18.42% YoY and 4.70% QoQ to Rs 19,206.18 crore, compared with Rs 16,218.79 crore in Q2 FY26 and Rs 18,343.49 crore in Q1 FY27.

Tech Mahindra fell 3.10%, tracking weakness in global telecom stocks after SpaceX's expansion plans raised concerns over increased competition in the wireless communications market. The development triggered concerns that SpaceX could emerge as a stronger competitor to traditional wireless operators by combining satellite connectivity with terrestrial mobile network capabilities. Communications is Tech Mahindra's largest revenue-generating vertical, accounting for 32.3% of revenue in Q1 FY27.

Aeroflex Industries surged 10.29% after the company announced that its board of directors will meet on Wednesday, October 14, 2026, to consider expansion plans.

Rajesh Power Services rose 4.44% after the company secured turnkey contracts worth Rs 471.92 crore, inclusive of taxes, from Madhya Gujarat Vij Company Limited (MGVCL).

Bajel Projects (BPL) declined 1.33% after the company secured a major EPC order worth over Rs 200 crore for 220kV Gas Insulated Switchgear (GIS) substations at Salsette and Powai in Mumbai.

PTC Industries jumped 5.25% after the company announced the successful completion of its qualified institutional placement (QIP), raising Rs 1,799 crore through the issue of equity shares to institutional investors. The QIP opened on October 6 and closed on October 9, 2026. The company's Listing and Fund-Raising Committee approved the allotment of shares at its meeting held on October 9.

The company allotted 8,54,700 equity shares to the eligible qualified institutional buyers at the issue price of Rs 21,060 per equity share including a premium of Rs 21,050 per equity share, aggregating to Rs 1,799 crore.

Following the allotment, PTC Industries' paid-up equity share capital increased to Rs 15.85 crore from Rs 14.99 crore, while the number of outstanding equity shares rose to 1.58 crore from 1.50 crore.

Swaraj Engines jumped 10.82% after the company reported a 21.9% increase in net profit to Rs 60.57 crore in Q2 FY27, compared with Rs 49.68 crore in Q2 FY26. Revenue from operations rose 26% year on year to Rs 635.19 crore in the quarter ended 30 September 2026.

Global Market:

European equity market advanced on Monday as investors assessed geopolitical developments and the start of the third-quarter earnings season.

Meanwhile, Ukrainian attacks on Russian infrastructure reportedly included strikes on data centres operated by Yandex, disrupting internet access and some digital and banking services. The continued attacks underscored uncertainty over whether the proposed energy truce would translate into an actual halt in hostilities.

Asian equity markets ended mixed on Monday amid geopolitical uncertainty and caution ahead of key corporate earnings. Trading volumes were subdued, with Japan's markets closed for Sports Day and the US Treasury market observing the Columbus Day holiday. US stock exchanges remained open, although trading in Treasury securities was suspended for the holiday.

US stocks ended higher on Friday, with all three major indices advancing and recording weekly gains. The Dow Jones Industrial Average rose 423.31 points, or 0.83%, to 51,654.95. The S&P 500 gained 46.18 points, or 0.59%, to 7,811.54, while the Nasdaq Composite advanced 172.83 points, or 0.64%, to 27,366.17. For the week, the Dow gained 0.9%, the S&P 500 rose 1.2% and the Nasdaq advanced 0.6%.

Investors will also focus on the US September-quarter earnings season, which begins with major banks reporting from Tuesday. US consumer price index (CPI) data due on Wednesday will be another key trigger, with inflation readings likely to influence expectations for the Federal Reserve's interest-rate path.

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