Nifty, Sensex May Open Flat; FIIs Extend 9-Day Selling Streak

Pre-Market Update at 7:45 AM: Equity benchmark indices Sensex and Nifty 50 are likely to start on a muted note on Monday, October 6, despite positive global cues. At 7:13 AM, the GIFT Nifty was trading at 24,960, down by 10 points. 

Investors this week will focus on key market triggers, including developments over the US government shutdown, the US FOMC meeting minutes, updates on the Israel-Hamas conflict, Q2FY26 corporate earnings, IPO activity, gold price trends, foreign fund flows, and other global and domestic macroeconomic data.

In early trade, Asian markets were trading higher, with Japan’s benchmark index hitting a record high, while US markets ended mixed in the previous session.

On Friday, October 3, Foreign Institutional Investors (FIIs) continued their selling streak for the ninth consecutive day, offloading equities worth Rs 1,583.37 crore. Meanwhile, Domestic Institutional Investors (DIIs) remained net buyers for the 28th straight session, purchasing shares worth Rs 489.76 crore.

Indian equities extended their gains for the second straight session on Friday. The Nifty 50 closed 57.95 points higher at 24,894.25, while the Sensex rose 223.86 points to 81,207.17. The India VIX, a measure of market volatility, declined over 2 per cent to 10, reflecting improved sentiment.

Among sectoral indices, nine out of eleven ended in green. The Nifty Metal index gained 1.82 per cent to a record high, driven by concerns over global copper supply and expectations of a US rate cut. The Nifty PSU Bank index also advanced more than 1 per cent, while Nifty Auto and Nifty Realty saw marginal declines. Broader markets remained positive, with both Nifty Midcap and Smallcap indices closing higher, indicating strong market breadth.

On Friday, the S&P 500 closed at a record high after a volatile session, supported by expectations of further rate cuts. The Dow Jones Industrial Average gained 238.56 points, or 0.51 per cent, to end at 46,758.28. The S&P 500 rose marginally by 0.01 per cent to 6,715.79, while the Nasdaq Composite slipped 63.54 points, or 0.28 per cent, to 22,780.51.

The Federal Reserve had earlier cut interest rates in September for the first time since December, citing softness in the labour market. Private-sector jobs fell by 32,000 in September, following a revised decline of 3,000 in August.

The US services sector showed no growth in September as new orders slowed sharply. The ISM non-manufacturing PMI dropped to 50 from 52.0 in August, while the new orders index fell to 50.4 from 56.0 in the previous month.

Bitcoin hit an all-time high of USD 125,559.21 on Sunday, driven by inflows into Bitcoin ETFs and optimism around the US government situation. The cryptocurrency was last trading 1 per cent higher at USD 123,538.23.

The US dollar index recovered slightly to 98.073 after recent declines. Gold prices surged to record levels above USD 3,900 per ounce amid strong safe-haven demand. Spot gold rose 0.4 per cent to USD 3,900.40 per ounce after touching a record high of USD 3,919.59. On MCX, gold futures closed at Rs 1,18,113 per 10 gm, up 0.45 per cent or 525 points on October 3.

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

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