GIFT Nifty signals weak opening as FPI selling crosses Rs 50,000 crore in October

GIFT Nifty:

GIFT Nifty October 2026 futures were down 21.50 points, signalling a negative opening for the Nifty 50.

The Securities and Exchange Board of India (SEBI) has revised the closing auction session (CAS) framework, introducing a 3:30 p.m. to 3:40 p.m. auction window and changing the reference price calculation to the volume-weighted average price (VWAP) of trades executed during the final 15 minutes of continuous cash-market trading. Most changes will take effect from 7 December 2026.

Order entry will close at a randomly determined, system-driven time between 3:38 p.m. and 3:40 p.m., with only limit and market orders permitted during the auction. Index derivatives will trade until 3:45 p.m., except expiring index contracts, which will close at 3:30 p.m. on expiry days, while stock derivatives will trade until 3:45 p.m. daily. The cash-market post-close session will run from 3:50 p.m. to 4 p.m., with trades executed at the closing price.

SEBI has also specified fallback reference prices when no trades occur during the final 15 minutes or on the day, and clarified expiry settlement calculations and restrictions on iceberg and stop-loss orders during CAS.

Meanwhile, the government has raised windfall tax on ‌exports of petrol, and reduced levies on diesel, according to a government notification issued late on Thursday night. The tax on petrol export was hiked to Rs 2.5 per litre ​from Rs 0.5 per litre, according to the notification. On the other hand, ​duty on diesel exports was slashed to Rs 8.5 per litre from ​Rs 16 per litre, effective ​October 16, the order said.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 5,285.37 crore, while domestic institutional investors (DIIs) were net buyers of Rs 3,319.39 crore in the Indian equity market 15 October 2026, according to provisional data.

FPIs sold shares worth Rs 50,478.51 crore in October through 15 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 advanced on Friday as investors assessed Wall Street's rebound and weighed persistent inflation concerns against the recent technology sell-off.

Brent crude prices edged lower to around $105.40 per barrel after rising above $106 in the previous session, as investors monitored developments in the Middle East and the outlook for global oil supplies.

US equities closed higher on Thursday. The Dow Jones Industrial Average climbed 1.08%, while the S&P 500 advanced 0.33% and the Nasdaq Composite gained 0.08%. The rebound came as Treasury yields eased and investors shifted towards defensive sectors, including healthcare and consumer-related stocks.

The gains followed a technology-led sell-off earlier in the week, triggered by hotter-than-expected US consumer inflation data that revived concerns about further Federal Reserve interest rate increases.

Technology shares remained vulnerable amid questions over whether strong demand for artificial intelligence would justify substantial spending on data centres, semiconductors and cloud infrastructure, particularly in a high-interest-rate environment.

Inflation remained a key concern after US producer prices rose more than expected in September. The Producer Price Index (PPI) for final demand increased 1.3% month on month, marking its largest monthly gain since March 2022. Annual producer inflation accelerated to 6.3% from 5.6% in August, indicating that price pressures were broadening beyond energy.

The producer inflation data followed a stronger-than-expected consumer price report released on Wednesday. Together, the reports heightened concerns about persistent inflation and increased uncertainty over the Federal Reserve's interest rate outlook.

Domestic Market:

The key equity benchmarks rallied on Thursday, as easing US Treasury yields and softer crude oil prices improved investor sentiment. The Sensex surged over 1,500 points, while the Nifty briefly reclaimed the 23,000 mark. The unwinding of global AI and semiconductor stocks also supported Indian IT shares, with the Nifty IT index gaining about 11% over five sessions. Reliance Industries rose sharply after Jio Platforms announced details of its proposed IPO, while large-cap banking stocks advanced ahead of their quarterly results. The rally was supported by buying in heavyweight stocks and expectations around September-quarter earnings, even as global markets remained under pressure from concerns over AI-related debt and intensifying competition in the semiconductor industry.

The S&P BSE Sensex surged 1,533.72 points or 2.11% to 74,315.61. The Nifty 50 index jumped 374.65 points or 1.66% to 22,997.35. It hit the day's high of 23,056.40.

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