GIFT Nifty signals weak start; inflation breaches RBI's 6% upper limit
GIFT Nifty:
GIFT Nifty November 2026 futures fell 64 points, pointing to a negative opening for the Nifty 50.
Economy:
India's retail inflation accelerated to 6.09% in October 2026 from 5.54% in September, breaching the Reserve Bank of India's 6% upper tolerance limit for the first time under the current CPI series. Food inflation climbed to 8.94% from 7.74%, driven by higher prices of essentials such as onions, garlic and ginger.
Institutional Flows:
Foreign portfolio investors (FPIs) bought shares worth Rs 7,830.60 crore, while domestic institutional investors (DIIs) were net sellers of Rs 6,331.17 crore in the Indian equity market 12 November 2026, according to provisional data.
FPIs bought shares worth Rs 74,893.89 crore in November through 12 November 2026. This follows net selling of Rs 48,082.27 crore in October 2026, while FPIs were net sellers of Rs 45,536.89 crore in September 2026.
Global Markets:
Dow futures rose 87 points, signalling a positive opening for US stocks.
Asian indices mostly traded higher on Friday, despite overnight losses on Wall Street. Investors continued to assess the leadership change at Nvidia after co-founder and chief executive Jensen Huang resigned. Technology shares remained in focus as market participants evaluated the potential implications for the artificial intelligence industry.
US stocks ended lower on Thursday, as Nvidia's leadership change unsettled investors and rising oil prices added to inflation concerns. The Dow Jones Industrial Average declined 189.40 points or 0.36% to 52,297.09. The S&P 500 fell 26.98 points or 0.35% to 7,592.40, while the Nasdaq Composite dropped 100.10 points or 0.39% to 25,366.09.
The benchmarks recovered from steeper early losses but ended in negative territory. The S&P 500 had fallen nearly 1% during the session before paring its losses. Energy stocks gained 1.5%, making the sector the best performer among the major S&P 500 industry groups.
Nvidia shares fell 4.34% to $166.19 after co-founder and chief executive Jensen Huang resigned with immediate effect. The stock had plunged as much as 14.3% during the session before recovering part of its losses.
The company appointed chief financial officer Colette Kress as interim chief executive while its board searches for a permanent successor. Harvey C. Jones was appointed chairman of the board. The company did not disclose a reason for Huang's resignation in its announcement.
Nvidia's competitors Advanced Micro Devices and Broadcom gained 5.86% and 5.54%, respectively. Arista Networks advanced 5.06%.
AI infrastructure stocks, however, faced selling pressure. Nebius Group plunged 16.84% after lowering its 2026 revenue outlook to the lower end of its previous guidance range of $3 billion-$3.4 billion.
US initial jobless claims increased by 9,000 to 200,000 in the week ended 7 November 2026, compared with economists' expectations of 195,000. The previous week's reading was revised to 191,000.
Continuing claims declined by 20,000 to 1.697 million in the week ended 31 October 2026. The figures indicated that layoffs remained relatively low despite higher borrowing costs and uncertainty surrounding the economic outlook.
Separately, existing home sales declined 5.5% in October to an annualised rate of 3.75 million units, compared with the market expectation of 3.85 million. This was the lowest level since August 2010. Sales also declined 8.8% year-on-year as higher mortgage rates weighed on housing demand.
Investors continued to price in further Federal Reserve tightening following stronger-than-expected inflation data earlier in the week. Market expectations indicated a near-certain 25-basis-point rate increase in December, with some pricing for a larger move.
The US Producer Price Index for October is scheduled for release later on Friday. Economists expect headline producer inflation to rise 0.4% month-on-month and 6.6% year-on-year, compared with increases of 1.3% and 6.3%, respectively, in September. These are forecasts, not released figures.
Crude oil prices advanced sharply on Thursday after US President Donald Trump said Washington no longer needed a deal with Iran, reducing hopes of a near-term diplomatic resolution.
Brent crude futures settled 3.3% higher at $95.82 a barrel. Attacks on Saudi energy infrastructure and disruptions to shipping through the Strait of Hormuz added to supply concerns.
Domestic Market:
The key equity benchmarks closed marginally higher on Thursday, extending their winning streak to three sessions amid volatile trading. The Nifty 50 opened at 25,213.50 and rebounded to a high of 25,384.80. However, profit booking at higher levels eroded most of its morning gains. The index traded in a narrow range around 25,220-25,280 during the second half before settling at 25,299.35. Broader indices outperformed the benchmarks. Among sectors, realty stocks led the gains, followed by media and PSU banks, while auto, FMCG, pharma and IT shares declined.
The S&P BSE Sensex jumped 31.61 points, or 0.04%, to 81,911.01, while the Nifty 50 rose 44.30 points, or 0.18%, to 25,299.35. In three consecutive sessions, the Sensex and the Nifty jumped 1.25% and 1.21%, respectively.
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