GIFT Nifty points to lower opening as traders brace for RBI rate decision

GIFT Nifty:

GIFT Nifty October 2026 futures fell 121.50 points, signalling a weak opening for the Nifty 50. Market participants will track the Reserve Bank of India's (RBI) policy decision due later today.

The RBI is widely expected to raise the benchmark repo rate by 25 basis points to 5.50% from 5.25%, where it has remained for nearly 10 months.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 2,961.30 crore, while domestic institutional investors (DIIs) were net buyers of Rs 5,088.92 crore in the Indian equity market on 6 October 2026, according to provisional data.

FPIs sold shares worth Rs 23,485.97 crore in October through 6 October 2026. This follows net selling of Rs 45,536.89 crore in September 2026, while FPIs were net buyers of Rs 17,366 crore in August 2026.

Global Markets:

Asian indices traded mixed on Wednesday, 7 October 2026, while mainland Chinese markets remained closed for a holiday. Investors were tracking Wall Street's record-setting close, movements in US Treasury yields and developments in oil prices.

US stocks ended higher on Tuesday, 6 October 2026, with the S&P 500 and Nasdaq Composite closing at record highs as easing Treasury yields and relatively stable crude oil prices supported risk appetite. The focus has now shifted towards the Federal Reserve's meeting minutes due later on Wednesday and the upcoming third-quarter earnings season.

The Dow Jones Industrial Average gained 253.38 points, or 0.49%, to 51,521.28, while the S&P 500 rose 45.00 points, or 0.58%, to 7,818.93. The Nasdaq Composite advanced 122.48 points, or 0.45%, to 27,599.79. The S&P 500 and Nasdaq both closed at fresh record highs.

Technology and artificial intelligence-related stocks remained important drivers of the rally. Semiconductor shares including Advanced Micro Devices and Marvell Technology gained amid continued optimism over demand for chips and infrastructure supporting artificial intelligence applications. Nvidia also remained near a $6 trillion market valuation, highlighting the continuing strength of the AI investment theme.

The rally also received a boost from the energy sector. Constellation Energy surged after announcing a major long-term electricity agreement with Google. The deal covers 3,590 MW of power, including a 20-year agreement for 890 MW from nuclear capacity and a separate 15-year agreement covering 2,700 MW from Constellation's existing PJM assets. Constellation plans to invest more than $4.3 billion to increase output at 11 nuclear reactor units. The agreement highlights the growing demand for reliable electricity as technology companies expand energy-intensive data-centre and AI infrastructure.

The deal also reinforced investor interest in companies positioned to benefit from the increasing power requirements of AI data centres. Constellation shares rose more than 12% on Tuesday, while other nuclear and power-related stocks also advanced.

US Treasury yields eased from their recent highs, providing some relief to equity markets. The 10-year Treasury yield ended around 5.27%, down roughly 3 basis points, while the two-year yield declined to around 4.80%. The 10-year yield had climbed to about 5.35% on Monday, its highest level in more than two decades, increasing pressure on interest-rate-sensitive assets.

Meanwhile, the US trade deficit widened sharply in August to $105.6 billion, up 13.7% from the previous month and the largest since March 2025. The increase was driven largely by a jump in imports, including crude oil, semiconductors and other goods, with imports reaching a record level.

Domestic Market:

The key equity benchmarks ended sharply higher on Tuesday, extending gains for a second consecutive session. The firmness was supported by positive global cues, easing crude oil prices and strong quarterly business updates from several companies. Investors also remained focused on the Reserve Bank of India's monetary policy meeting, with the policy decision due on Wednesday, 7 October. The Nifty closed above the 22,750 mark. At the sectoral level, Nifty Bank, Consumer Durables, Energy, Media, Metal, Pharma, Oil & Gas and Private Bank indices closed higher, while Nifty IT, Realty and PSU Bank indices declined.

The S&P BSE Sensex jumped 685.34 points or 0.95% to 73,067.81. The Nifty 50 index rose 220.35 points or 0.98% to 22,776.10. Over two consecutive sessions, the Sensex and Nifty have jumped 1.61% and 1.58%, respectively.

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