GIFT Nifty signals negative opening; investors track Jio Platforms IPO and global cues

GIFT Nifty:

GIFT Nifty October 2026 futures were down 15.50 points, signalling a negative opening for the Nifty 50.

Jio Platforms? IPO opens for subscription today, 21 October 2026, aiming to raise Rs 30,213 crore through a fresh issue of up to 27 crore equity shares. The price band has been fixed at Rs 1,065-1,119 per share, making it India's largest public offering to date.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 1,148.64 crore, while domestic institutional investors (DIIs) were net buyers of Rs 3,201.19 crore in the Indian equity market 19 October 2026, according to provisional data.

FPIs sold shares worth Rs 52,007.92 crore in October through 19 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 equity indices opened higher on Wednesday, 21 October 2026, led by gains in Japan and South Korea, as renewed optimism over artificial intelligence (AI) investments supported sentiment following the previous session's sell-off.

Asian technology stocks had come under pressure on Tuesday amid concerns over heavy AI infrastructure spending and rising financing costs. Investors are assessing corporate earnings to determine whether substantial investments in AI will translate into sustainable growth.

Sentiment received a boost from Super Micro Computer's stronger-than-expected preliminary revenue guidance for Q1 FY27. The company expects revenue of $18.5 billion to $19.5 billion, up from its earlier forecast of $14.5 billion to $15.5 billion and above analyst expectations of around $15 billion. It also raised its gross margin outlook to 12%-12.5% from 10.4%-10.8%, citing a more favourable customer and product mix.

Meanwhile, Japan's exports rose 16.7% year-on-year in September, marking the 13th consecutive month of growth. However, the increase fell short of market expectations. Exports to the US climbed 22.9%, while shipments to China increased 8.6%. Japan's trade deficit narrowed to 536.6 billion yen.

Overnight, US equity markets ended mixed on Tuesday, 20 October 2026. The Dow Jones Industrial Average advanced 1.02% to 52,495.88, while the S&P 500 gained 0.28% to 7,712.57. The Nasdaq Composite edged down 0.02% to 26,424.82 as weakness in technology stocks offset gains elsewhere.

Healthcare and industrial stocks supported the Dow's advance as investors assessed corporate earnings and reassessed valuations of technology companies. Concerns over the cost and potential returns from AI-related investments continued to influence market sentiment.

SpaceX shares rose over 8% in extended trading after third-quarter revenue surged 161% year-on-year to $14.58 billion, while net income reached $4.4 billion against a loss of $1.1 billion a year earlier. Strong demand for AI computing capacity drove AI revenue up more than ninefold. Meanwhile, Netflix fell 6% on concerns over slowing revenue growth.

On the economic front, US housing starts fell 5.2% month-on-month in September, while building permits declined 0.2%. Single-family housing starts dropped 4.6% to an annualised rate of 859,000 units. Single-family permits fell 4% to 845,000, their lowest level in three-and-a-half years, signalling continued weakness in the housing sector.

Meanwhile, crude oil prices rose on Wednesday amid renewed concerns over supply disruptions in the Middle East. Brent crude gained 85 cents to $109.64 a barrel. Prices had fluctuated on Tuesday following conflicting reports about progress in US-Iran diplomatic efforts. Continued threats to energy infrastructure and shipping routes kept supply risks in focus.

Corporate earnings are expected to remain a key driver of global markets this week. Investors will assess whether earnings growth can support equity valuations amid elevated borrowing costs and uncertainty over AI spending. Developments in the Middle East and movements in crude oil prices are also likely to influence sentiment.

Domestic Market:

The domestic equity benchmarks ended sharply lower on Monday, with the Nifty 50 closing below the 22,900 mark. Heavy selling in heavyweight private banking stocks, elevated crude oil prices, weak global cues and profit booking after the previous two sessions' rally weighed on sentiment. Persistent foreign investor outflows in October also remained a concern. The sell-off was broad-based, with midcap and smallcap stocks declining. However, the Nifty PSU Bank index bucked the trend, gaining over 2% on the back of strong quarterly results from select public sector lenders.

The S&P BSE Sensex tanked 876.37 points or 1.17% to 73,852.90. The Nifty 50 index lost 257.20 points or 1.11% to 22,888.95. In the past four trading sessions, the Sensex and Nifty rallied 2.68% and 2.31%, respectively.

The domestic stock market was shut on Tuesday, 20 October 2026, on account of Dussehra.

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