Nifty 50 slips below 22,500 as Shriram Finance falls 5%

The Nifty 50 slipped below 22,500 in early trading on Monday, October 26, 2026, extending the previous week’s losses as elevated oil prices and Middle East tensions weighed on sentiment. Shriram Finance led the index’s declines, falling almost 5%, while the Sensex also retreated.

Key Takeaways

• The Nifty fell 0.71% to 22,438.70 in early trade; the Sensex dropped 0.65%.
• Shriram Finance lost 4.97%, while Kotak Mahindra Bank rose 2.21%.
• Oil eased but remained elevated ahead of the Federal Reserve’s October 27–28 meeting.

Table of Contents

• Nifty 50 extends the previous week’s losses
• Shriram Finance leads declines as bank shares diverge
• Oil retreats without removing supply concerns
• Federal Reserve meeting is the next scheduled catalyst
• Conclusion

Nifty 50 extends the previous week’s losses

The Nifty opened at 22,524.40, below its previous close of 22,600, before falling to 22,438.70—a decline of 161.30 points, or 0.71%. The Sensex opened at 72,990.04 and slipped to 72,650.62, down 473.21 points, or 0.65%, from its previous close.

These were early-session readings rather than closing results. The weakness followed a week in which the Nifty lost 2.4% and the Sensex shed 1,575 points across four consecutive losing sessions. Defence and chemicals shares were among the weakest groups, each declining more than 7%.

Pressure had also spread beyond large companies. On Friday, October 23, the Nifty Midcap 100 fell 2.21% and the Nifty Smallcap 100 dropped 2.94%. India VIX rose 6.96% to 16.86, indicating higher expected market volatility.

Shriram Finance leads declines as bank shares diverge

Shriram Finance fell 4.97% to ₹822.00, making it the biggest Nifty loser in the early snapshot. Infosys declined 3.28% to ₹1,115.90, adding to the pressure on the benchmark.

Financial shares did not move uniformly. Kotak Mahindra Bank gained 2.21% to ₹440.00, leading the index’s advances, while Bajaj Finance declined. Other gainers included JSW Steel, up 1.45% to ₹1,202.70, and Adani Ports, up 0.83% to ₹1,716.80.

The selling followed net institutional purchases in the previous session. Foreign institutional investors bought ₹887 crore of equities on October 23, while domestic institutional investors purchased ₹3,236 crore, their fourth consecutive session of net buying.

Oil retreats without removing supply concerns

Brent crude eased 1.6% to $114.80 a barrel in early Monday trading after settling at $116.72 on Friday, its highest close since late April. West Texas Intermediate fell 2% to $101.30 a barrel.

Hariselvan Radhakrishnan, founder and CEO of HST Wealth, said the pullback reduced the immediate intensity of the oil shock but did not resolve its broader implications because prices remained elevated and Middle East supply risks persisted.

The rupee had weakened by 12 paise to close at 94.94 per US dollar on Friday. Sachin Gupta, vice president of technical research at Choice Broking, described global markets as remaining under pressure after Wall Street’s weekly decline, with Asian equities starting cautiously amid high oil prices and regional tensions.

Federal Reserve meeting is the next scheduled catalyst

The Federal Reserve’s 2026 meeting calendar lists its next policy meeting for October 27–28. That schedule establishes the timing of the decision, not its outcome.

Ponmudi R, CEO of Enrich Money, warned that a hawkish shift in the Fed’s tone could keep US Treasury yields elevated, strengthen the dollar and constrain foreign portfolio flows into emerging markets. The US 10-year Treasury yield was around 4.99% ahead of the meeting.

Conclusion

The Nifty 50’s early decline extended a weak run despite Friday’s institutional buying. The next confirmed policy event is the Federal Reserve’s October 27–28 meeting, with its decision and guidance still ahead.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.