Sensex and Nifty ended flat on Tuesday, October 27, 2026, as markets stayed cautious. While IT stocks fell after Infosys cut its revenue outlook, smallcap stocks surged 2.69 per cent. Ajit Mishra said, “Markets remained volatile on the monthly expiry day, ending largely unchanged as mixed cues kept participants cautious.”
Benchmark indices ended virtually unchanged on Tuesday, October 27, 2026, but beneath the flat headline numbers lay a sharply divided market—Infosys dragged IT stocks down over 1.4 per cent after cutting its FY27 revenue outlook, while smallcap stocks surged 2.69 per cent. The government cleared a ₹2.12 lakh crore defence acquisition package with 82 per cent earmarked for domestic manufacturers.
“Markets remained volatile on the monthly expiry day, ending largely unchanged as mixed cues kept participants cautious...the lack of a clear directional trend reflects continued uncertainty following the recent market correction,” said Ajit Mishra, SVP–Research at Religare Broking.
Sensex, Nifty end flat; Bank Nifty falls 0.72%
The BSE Sensex closed at 73,598.67, down 8.08 points or 0.01 per cent, after swinging between a high of 73,762.98 and a low of 73,179.41 through the session. The NSE Nifty50 settled at 22,749.75, down 3.45 points or 0.02 per cent, touching an intraday high of 22,829.75 before profit-booking pulled it back. Bank Nifty underperformed sharply, closing at 53,974.90, down 391.80 points or 0.72 per cent, weighed by private sector banking stocks. India VIX declined 4.4 per cent to 16.53.
Smallcaps surge as IT stocks slide
The broader market told a different story. The Nifty Midcap 100 gained 1 per cent, and the Nifty Smallcap 100 rose 2.69 per cent, suggesting strong stock-specific buying after last week’s correction. Media, realty, pharma and auto led gains, while IT, private banks, cement and financial services lagged. The Nifty IT index fell over 1.4 per cent after Infosys cut its FY27 revenue growth outlook, with TCS and Wipro also closing lower. Concerns over AI-led disruption and slowing traditional IT spending compounded the pressure on the sector.
₹2.12 lakh crore defence package boosts policy focus
On the policy front, the government’s approval of defence acquisition proposals worth approximately ₹2.12 lakh crore, with 82 per cent of procurement directed at domestic manufacturers, emerged as a significant catalyst for defence stocks. The government also approved amendments to the Central Motor Vehicles Rules, allowing flex-fuel vehicles to run on ethanol blends up to E100. Infrastructure spending stood at ₹17.73 lakh crore across 1,853 projects as of September against a planned outlay of ₹37.56 lakh crore.
Rupee gains; gold slips as crude stays above $115
The rupee edged up 9 paise to close at 95.08 against the US dollar, finding support near the 95.00 level even as Brent crude held above $115 per barrel near six-month highs. MCX gold fell about ₹750 to ₹1,42,300, while COMEX gold hovered near $4,000, as dollar strength and caution ahead of the Federal Reserve’s policy decision weighed on bullion.
Jio Platforms listing, Fed decision in focus on Wednesday
Wednesday brings two major events: the listing of Jio Platforms, India’s largest-ever IPO, which was subscribed 22.19 times, and the US Federal Reserve’s rate decision, with guidance on inflation and the rate trajectory closely watched for its impact on global capital flows and emerging-market equities. Q2 earnings from Hindustan Unilever, Adani Ports, TVS Motor, Hyundai Motor India and Hero MotoCorp, among others, will also shape market direction.