Indian Equities Expected to Open Steady; US Markets Rally to Record

Pre-Market Update at 7:45 AM: Equity benchmark indices Sensex and Nifty 50 are expected to open muted on Friday, October 3, following mixed global cues. At 7:13 AM, the GIFT Nifty was trading at 24,941, down by 9 points.

Indian markets had recovered sharply on Wednesday after falling for eight consecutive sessions. The momentum is expected to continue, supported by accommodative monetary policy, favourable monsoon conditions, and higher festive demand. Early Asian trade showed gains, while Wall Street closed at record highs overnight.

On October 1, Foreign Institutional Investors (DII ">FIIs) were net sellers, offloading equities worth Rs 1,605.20 crore, extending their selling streak to eight consecutive days. In contrast, Domestic Institutional Investors (DIIs) remained net buyers for the 27th straight session, purchasing equities worth Rs 2,916.14 crore.

On the same day, Indian indices recorded their sharpest Intraday gains since August 18, breaking an eight-day losing streak. The Nifty 50 rose 243.15 points, or 0.99 per cent, to 24,836.30, while the Sensex climbed 715.70 points, or 0.89 per cent, to close at 80,983.31. Financial stocks led the rally after the Reserve Bank of India kept policy rates unchanged and introduced regulatory relaxations on lending and corporate acquisitions. 

The RBI revised India’s FY26 GDP growth forecast to 6.8 per cent while lowering CPI inflation to 2.6 per cent. India VIX slipped over 7 per cent to fall below 11, signalling reduced volatility. Sector-wise, 10 of 11 major indices closed higher, with Nifty Financial Services up 1.38 per cent and Bank Nifty rising 1.3 per cent. Broader markets also strengthened as Nifty Midcap and Smallcap indices gained.

On Thursday, Wall Street’s key indices closed at record highs for the second consecutive session. The Dow Jones Industrial Average rose 78.62 points, or 0.17 per cent, to 46,519.72. The S&P 500 added 4.15 points, or 0.06 per cent, to 6,715.35, while the Nasdaq Composite advanced 88.89 points, or 0.39 per cent, to 22,844.05. 

Technology stocks supported the gains as investors tracked private employment data amid the ongoing US government shutdown. Weak labour market indicators strengthened expectations of two more Federal Reserve rate cuts this year, one likely in late October. However, the release of September’s nonfarm payroll data has been delayed due to the shutdown.

US President Donald Trump stated he would meet with White House Budget Director Russell Vought to discuss potential cuts to the federal workforce, increasing pressure on Democrats to resolve the shutdown, which entered its second day.

Gold prices edged higher in Asian trade as shutdown risks raised expectations of further Fed rate cuts. Spot gold was at USD 3,850.60/oz, down 0.07 per cent as of 7:08 AM IST. The dollar index remained steady but was on track for a 0.35 per cent weekly decline, its largest since early August. Crude oil prices gained modestly but were still heading for their biggest weekly fall since June. Brent crude rose 0.45 per cent to USD 64.40 a barrel, while WTI crude increased 0.46 per cent to USD 60.76.

For today, RBL Bank and Samaan Capital will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.