Sectoral Snapshot Today, September 28, 2026: PSU Banks Lead Selloff As Oil Surge Hits Indian Equities

Mumbai, September 28: Indian equities witnessed broad-based selling on Monday, with all sectoral indices ending in the red as a sharp rise in crude oil prices and heightened geopolitical uncertainty weighed on risk appetite. The Nifty PSU Bank index emerged as the biggest laggard, falling around 3%, while Telecom declined 2%. Energy, Infrastructure, FMCG, Realty, Private Bank, Metal and Oil & Gas indices also shed more than 1% each. 

PSU Banks, Financials Under Pressure 

Banking stocks came under heavy selling pressure as investors turned cautious amid rising oil prices and concerns over their potential impact on inflation and interest rates. The Nifty PSU Bank index fell around 3%, while the Private Bank index declined more than 1%. The broader financial sector had already been among the weaker pockets in early trade, with high-weightage financials and banks falling. Private sector lender ICICI Bank fell 1.9% while State Bank of India declined 2%.  Bajaj Finance fell 1.2% while Shriram Finance declined 1.8%.  

Telecom Stocks Decline 

The Telecom index fell around 2% as selling pressure spread across the sector. Vodafone Idea was among the notable decliners, falling 5.5%, despite the company receiving attention for its new free international roaming offering. Bharti Airtel declined 0.8%. The broader risk-off environment outweighed stock-specific developments, with investors also tracking the sector’s competitive dynamics and financial position. 

Energy, Oil & Gas Stocks Fall 

Energy and Oil & Gas stocks also ended lower despite crude prices surging in global markets. The Nifty Oil & Gas index fell more than 1% as higher crude prices raised concerns over input costs and margins for downstream companies. Oil-sensitive stocks including Indian Oil, BPCL, and Hindustan Petroleum faced selling pressure during the session. Refining to telecom giant Reliance fell 2.3%.  

Brent crude rose nearly 4% to around $108.2 a barrel after US President Donald Trump rejected an Iranian proposal aimed at resolving the conflict and reopening the Strait of Hormuz. The deadlock raised concerns over energy supplies through the key shipping route, adding to pressure on oil-importing economies such as India.  

Oil-linked stocks also declined: airline IndiGo fell 1.3%, tyre maker MRF declined 0.5% and Asian Paints fell 1%. 

Realty, Metals, Infra And FMCG Also Decline 

Realty, Metal, Infrastructure and FMCG stocks were among the other major sectoral losers, each falling more than 1%. The weakness reflected the broad nature of Monday’s selloff rather than a single sector-specific trigger. Higher crude prices, a weaker rupee and concerns around inflation added to the pressure on domestic equities. 

The broader market also weakened sharply, with the Nifty Midcap index falling 1.7% and the Smallcap index declining 1.8%. The widespread losses came after the Nifty and Sensex had already recorded seven consecutive weekly declines, with the benchmarks now down nearly 6% over the recent losing streak.  

Oil, Geopolitics Remain Key Triggers 

The sharp rise in oil prices remained the dominant macro trigger for the session. India, the world’s third-largest crude importer, is particularly vulnerable to sustained increases in energy costs, which can raise the import bill, put pressure on inflation and squeeze corporate margins.  

The sectoral selloff therefore remained broad-based, with investors tracking developments around the US-Iran conflict, crude oil prices, the rupee and foreign fund flows for further direction. 

Source

•  NSE