GIFT Nifty signals weak opening as FPI selling, global cues weigh on sentiment

GIFT Nifty:

GIFT Nifty October 2026 futures were down 66 points, indicating a negative opening for the Nifty 50.

The government has reduced the windfall gains tax on exports of diesel and aviation turbine fuel (ATF) for the fortnight beginning 1 October 2026, while keeping the levy on petrol exports unchanged. The special additional excise duty (SAED), along with road and infrastructure cess, on diesel exports has been cut to Rs 16 per litre from Rs 20 per litre, while the levy on ATF exports has been reduced to Rs 10.5 per litre from Rs 15 per litre. The duty on petrol exports remains unchanged at Rs 0.5 per litre. The Finance Ministry said there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.

The Indian stock market will remain closed on Friday, 2 October 2026, on account of Mahatma Gandhi Jayanti.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 10,148.41 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 11,271.73 crore in the Indian equity market on 30 September 2026, according to provisional data.

FPIs sold shares worth Rs 45536.89 crore in September so far, through 30 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 shares traded mixed on Thursday, with mainland China and Hong Kong markets closed for holidays.

US stocks ended mixed on Wednesday after data showed that inflation rose less than expected in August, easing expectations of an immediate Federal Reserve rate hike.

However, elevated Treasury yields limited gains. The Dow Jones Industrial Average declined 443.87 points, or 0.86%, to 50,906.05, while the S&P 500 fell 19.30 points, or 0.25%, to 7,651.54. The Nasdaq Composite rose 63.52 points, or 0.24%, to 26,861.06.

US inflation, as measured by the Personal Consumption Expenditures (PCE) price index, rose 0.3% month-on-month in August and 3.4% year-on-year. The annual increase was below economists? expectations of 3.7%, helping reduce expectations of a Federal Reserve rate hike at the October meeting. Core PCE inflation rose 3% year-on-year.

Micron Technology reported record fiscal fourth-quarter revenue of $54.23 billion and non-GAAP earnings of $33.42 per share. The company forecast adjusted EPS of $38.15 at the midpoint for the current quarter, above market expectations. Its shares initially gained in after-hours trading before paring the move.

Crude oil prices traded lower, with Brent crude futures down 0.24% at $97.79 a barrel. Oil prices remained a key focus for investors amid ongoing geopolitical tensions and concerns over energy supply.

Investors will next focus on the US nonfarm payrolls report for September, due on Friday, for further clues on the Federal Reserve?s interest-rate path.

Domestic Market:

The key equity benchmarks ended lower on Wednesday, extending their decline for a third consecutive session, as healthcare and metal stocks came under selling pressure. The Nifty settled below the 22,650. Realty and banking stocks, including private lenders, advanced and limited the overall decline.

Elevated crude oil prices and continued foreign institutional investor (FII) selling weighed on sentiment. Investors remained cautious amid elevated global bond yields and geopolitical uncertainties. Market participants are also tracking US inflation data and movements in crude oil prices and bond yields for cues on the global interest-rate outlook.

The S&P BSE Sensex declined 48.78 points or 0.07% to 72,480.29. The Nifty 50 index declined 95.75 points or 0.42% to 22,620.45. In three sessions, the Sensex and Nifty fell 1.92% and 2.25%, respectively.

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