GIFT Nifty points to lower start; oil prices, FII flows in focus

GIFT Nifty:

GIFT Nifty October 2026 futures were down 44.50 points, indicating a negative start for the Nifty 50.

India's core sector output growth slowed to 4.8% year-on-year in August 2026 from a revised 5.0% growth in July. The eight core industries had initially recorded 5.4% growth in July, which was subsequently revised to 5.0%.

The August growth was supported by higher output of cement and electricity, which rose 12.5% and 11.6%, respectively. Steel production increased 3.4%, while output of coal, crude oil, natural gas and fertilisers declined.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 576.20 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,797.27 crore in the Indian equity market on 21 September 2026, according to provisional data.

FPIs sold shares worth Rs 19390.86 crore in September so far, through 21 September 2026. This follows net cash purchases of Rs 17,366 crore in August 2026, while they were net buyers of Rs 6,731.97 crore in July 2026.

Global Markets:

Asian stock market traded higher on Tuesday, tracking a strong overnight rally on Wall Street, as gains in technology stocks and easing crude oil prices supported investor sentiment.

US stocks ended sharply higher on Monday, with the Nasdaq Composite rising to a record closing high as investors returned to artificial intelligence-related stocks. The Dow Jones Industrial Average rose 0.71% to 52,048.83, while the S&P 500 gained 1.49% to 7,764.70. The Nasdaq advanced 2.26% to 27,122.09.

Among major technology stocks, Nvidia rose 2.30%, AMD jumped 9.95%, Intel rallied 12.14%, Microsoft gained 1.59%, Amazon advanced 1.87%, Meta Platforms surged 11.43% and Apple rose 0.85%. Semiconductor stocks led the broader technology rally, with the Philadelphia Semiconductor Index gaining 4.29%.

Oil prices remained in focus after Brent crude fell 3.4% on Monday to around $100.34 a barrel. Brent was trading near $100.22 on Tuesday as investors assessed signs of easing supply disruptions and possible diplomatic engagement between the US and Iran.

Saudi Arabia has also increased crude shipments from its Gulf terminals following disruptions to its East-West pipeline.

US President Donald Trump said he was probably open to meeting Iranian President Masoud Pezeshkian during the United Nations General Assembly in New York this week. The possibility of direct talks has added to expectations of diplomatic efforts to ease tensions and reduce risks to regional energy supplies.

The Trump administration has also reportedly proposed investing $5 billion in a fund to help Middle Eastern countries rebuild energy infrastructure damaged during the Iran war and reduce their dependence on the Strait of Hormuz.

Domestic Market:

The key equity benchmarks ended higher on Monday, supported by easing crude oil prices and renewed buying in heavyweight stocks. The Nifty closed above the 23,400 level. Sectorally, pharma, FMCG and realty shares were in demand, while metal, PSU bank and IT stocks declined.

Global cues were broadly positive, with most Asian markets advancing and US equity futures trading higher. Investors also remained focused on the planned meeting between US President Donald Trump and Chinese President Xi Jinping later this week, with trade and economic relations among the key areas under watch.

The S&P BSE Sensex jumped 564.03 points or 0.76% to 74,858.99. The Nifty 50 index added 67.90 points or 0.29% to 23,414.30.

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