The Indian stock market declined nearly 1% on Wednesday (October 28, 2026) following a rise in crude prices and as investors remained cautious ahead of the U.S. Federal Open Market Committee’s (FOMC) policy decision due today.

At 10.58 a.m., the BSE Sensex plunged 1.04%, down 764 points, to 72,834.67. The Nifty 50 declined 0.8%, down 187.55 points, to 22,550. 

“The market has turned decisively weak with indications of about 250 points cut in Nifty implied open. There are reports of possible renewed strikes by the US on Iran after the mid-term elections in the US. Brent crude has again firmed up to above $115, which is bad news for the Indian economy and markets,” Dr. VK Vijayakumar, chief investment strategist at Geojit Investments Limited said in a note.

Volatility in global crude prices continues to trigger risk-arse sentiments in investors. The benchmark Brent crude rose on Wednesday (October 28, 2026) following a Houthi attack on an oil refinery in Saudi Arabia, renewing fears of escalating geopolitical tensions in West Asia. 

Brent crude futures surged nearly 1.5% to $115.36 a barrel while the West Texas Intermediary (WTI) rose 1.2% to $101.12 per barrel. Brent crude saw a decline of nearly $2 on Tuesday (October 27, 2026) amid hopes of a conflict resolution. 

Furthermore, global investors also remain cautious ahead of the U.S. FOMC decision due later in day. The U.S. central bank is widely expected to keep the Fed Funds target range unchanged at 3.75%-4.00%. 

U.S. Federal Reserve Chairman Kevin Warsh hiked the benchmark rates by 25 basis points in September, its first hike since 2023, in order to address sticky inflation driven by rising energy and oil prices. The consumer price index (CPI) rose further to 3.7% last month from 3.4% from August.

Sticky inflation alongside a higher interest rate regime and rising household costs are adding to the mounting pressure on the Trump administration. U.S. President Donald Trump is up for midterm elections on November 3.