Indian shares seen higher as GIFT Nifty rises; FPIs continue selling

GIFT Nifty:

GIFT Nifty October 2026 futures rise 62 points, signalling a positive opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 6,121.37 crore, while domestic institutional investors (DIIs) were net buyers of Rs 4,596.57 crore in the Indian equity market on 7 October 2026, according to provisional data.

FPIs sold shares worth Rs 25,976.20 crore in October through 7 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 Thursday, tracking the previous session's weakness on Wall Street as elevated US Treasury yields continued to weigh on risk appetite.

Investors assessed minutes from the Federal Reserve's September meeting, which showed that all 19 policymakers supported the latest rate increase, while most participants considered another rate hike likely to be appropriate by the end of the year. The minutes also highlighted differing views among officials over the inflation outlook and the appropriate pace of further tightening.

US stocks ended lower on Wednesday as longer-dated Treasury yields remained elevated. The Dow Jones Industrial Average declined 0.66%, while the S&P 500 fell 0.22%. The Nasdaq Composite also declined 0.22%.

Crude oil prices gained amid renewed geopolitical concerns after reports that the Trump administration was considering military strike options against Iran before the US midterm elections. Brent crude futures rose 1.16% to $101.36 a barrel.

Investors will now turn their attention to the upcoming third-quarter earnings season. Corporate results, Treasury yields, oil prices and expectations for further Fed rate hikes are likely to remain key drivers for global equity markets.

Domestic Market:

The key equity indices ended with significant losses on Wednesday, tracking weak global cues. Investor sentiment remained cautious after the Reserve Bank of India (RBI) raised the policy repo rate by 25 basis points to 5.50% and shifted its monetary policy stance to calibrated tightening. The rate hike was largely anticipated by market participants. Broader market indices also remained under pressure. The Nifty closed below the 22,650 mark, with banking stocks providing some support. Meanwhile, metal and auto stocks declined.

The S&P BSE Sensex declined 429.11 points or 0.59% to 72,638.70. The Nifty 50 index fell 173.05 points or 0.76% to 22,603.05. In the past two consecutive sessions, the Sensex and Nifty have jumped 1.61% and 1.58%, respectively.

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