GIFT Nifty signals weak start as Fed holds rates, Alphabet slumps
GIFT Nifty:
GIFT Nifty November 2026 futures were down 81 points, signalling a weak opening for the Nifty 50.
Institutional Flows:
Foreign portfolio investors (FPIs) bought shares worth Rs 871.83 crore, while domestic institutional investors (DIIs) were net buyers of Rs 643.35 crore in the Indian equity market 28 October 2026, according to provisional data.
FPIs sold shares worth Rs 48,382.54 crore in October through 28 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:
Dow futures rose 169 points, signalling a strong opening for US stocks.
Asian indices were mixed on Thursday, as gains in artificial intelligence-linked shares offset concerns following Alphabet's weaker-than-expected earnings.
Investors assessed the latest technology earnings alongside the Federal Reserve's decision to keep interest rates unchanged. Semiconductor stocks drew support from gains in US chipmakers, while concerns about the cost of AI infrastructure and the returns on investment remained in focus. Alphabet's post-market earnings miss added uncertainty ahead of further results from major technology companies.
US stocks ended higher on Wednesday, after the Federal Reserve kept its benchmark interest rate unchanged. The Dow Jones Industrial Average rose 97.53 points, or 0.19%, to 52,475.10. The S&P 500 gained 21.37 points, or 0.28%, to 7,743.97, while the Nasdaq Composite advanced 72.04 points, or 0.27%, to 26,549.85.
The Fed maintained its target range at 3.75%-4.00% in a 10-2 vote. It upgraded its assessment of economic activity but said inflation remained elevated. Governors Lisa Cook and Beth Hammack dissented, preferring a 25-basis-point rate increase. Markets subsequently raised the implied probability of a December rate hike to 85%, from 78.3% a day earlier, according to CME FedWatch data.
Microsoft shares gained more than 4% in extended trading after the company reported stronger-than-expected cloud revenue. Azure growth accelerated to 48% in its fiscal first quarter, beating its previous guidance and supporting optimism about demand for cloud computing and AI services. Investors will continue to assess Microsoft's capital expenditure and data-centre investment plans.
Alphabet shares fell more than 7% in after-hours trading after its third-quarter results missed analysts' expectations. Revenue rose 25% year on year to $127.58 billion, below the $127.97 billion forecast. Net income fell to $26.17 billion from $34.98 billion a year earlier, while earnings per share came in at $2.12, below estimates of about $3.01. An $8.7 billion loss on equity investments weighed on reported earnings.
Google Cloud remained a bright spot, with revenue surging 103% to $30.7 billion, driven by demand for AI infrastructure and enterprise services. However, investors remained concerned about the scale of capital expenditure and the returns from AI investment.
Investors are awaiting US third-quarter GDP, September personal income and spending figures, and the Personal Consumption Expenditures price index on Thursday. The PCE index is the Federal Reserve's preferred inflation gauge. Initial jobless claims are also due.
Domestic Market:
The key equity benchmarks ended marginally lower on Wednesday, extending their losing streak to a second consecutive session. Elevated crude oil prices and weakness in heavyweight stocks weighed on market sentiment. Investors remained cautious ahead of the US Federal Reserve?s monetary policy decision later in the day, seeking clarity on the interest rate outlook and its implications for global markets. The Nifty settled below the 22,700 mark. Oil & gas and IT stocks declined, while auto and consumer durables shares advanced.
The S&P BSE Sensex declined 352.64 points or 0.48% to 73,246.03. The Nifty 50 index fell 50.90 points or 0.22% to 22,698.85. In the two consecutive trading sessions, the Sensex and the Nifty dropped 0.49% and 0.24%, respectively.
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