GIFT Nifty points to lower opening as FPI outflows, high US yields weigh

GIFT Nifty:

GIFT Nifty October 2026 futures were down 33 points, indicating a negative opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 9,980.22 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 6,952.71 crore in the Indian equity market on 29 September 2026, according to provisional data.

FPIs sold shares worth Rs 34793.90 crore in September so far, through 29 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:

US Dow Jones index futures were up 198 points on Wednesday, pointing to a higher opening for US stocks.

Asian stocks traded higher on Wednesday, while Asian currencies remained under pressure from rising global bond yields, higher oil prices and US-Iran tensions.

US stocks ended slightly lower on Tuesday as government bond yields continued to rise ahead of key inflation and labour market data, while investors assessed comments from Federal Reserve officials for clues on the interest-rate outlook.

The Dow Jones Industrial Average declined 131.59 points, or 0.26%, to 51,349.92, while the S&P 500 fell 12.85 points, or 0.17%, to 7,670.84. The Nasdaq Composite declined 22.84 points, or 0.08%, to 26,797.54.

Longer-dated US Treasury yields rose, with the 30-year bond yield hitting 5.6206%, its highest level since June 2002. The benchmark 10-year Treasury yield climbed to 5.293%, its highest level since June 2007.

The 30-year fixed mortgage rate rose to 7.58% on Tuesday. This was the highest level in the current series since November 2023.

Expectations for at least a 25-basis-point Fed rate hike at the October meeting fell to 51.5% from nearly 70% earlier in the session, according to CME FedWatch. This was after New York Fed President John Williams said the central bank had time to assess incoming data before deciding on another rate increase.

US job openings fell by 256,000 to 7.079 million in August, the lowest level in five months, while the Conference Board's consumer confidence index fell 6.7 points to 81.9 in September, its lowest level since 2014.

Crude oil prices fell as concerns over supply disruptions eased following signs of a recovery in Saudi Arabia's crude exports from its Red Sea ports after repairs to a key pipeline. Uncertainty over the reopening of the Strait of Hormuz continued amid the US-Iran conflict. Brent crude futures fell 2.6% to settle at $102.59 a barrel on Tuesday.

Domestic Market:

The key equity benchmarks declined for the second consecutive session on Tuesday, amid F&O expiry-day volatility. Persistent uncertainty over the Iran war and prospects of a peace deal, continued FII selling, rupee weakness, rising crude oil prices and elevated US Treasury yields weighed on sentiment. The Nifty closed below the 22,750 mark. Broader market underperformed, while most sectoral indices ended lower. IT, consumer durables and auto stocks faced selling pressure, while metal and pharma stocks gained.

The S&P BSE Sensex tanked 242.65 points or 0.33% to 72,529.07. The Nifty 50 index tumbled 64.05 points or 0.28% to 22,716.20. In two sessions, the Sensex declined 1.85%, while the Nifty fell 1.83%.

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