Sensex, Nifty 50 to Begin Flat Ahead of Q2FY26 Results

Pre-Market Update at 7:45 AM: Nifty, Sensex Likely to See a Muted Start Ahead of Q2FY26 Earnings Season; Focus on Banking, IT and Consumption Stocks

Equity benchmark indices Sensex and Nifty 50 are expected to open on a muted note on Tuesday, October 7, despite positive global cues. At 7:13 AM, the GIFT Nifty was trading at 25,158, down by 21 points. Market focus is likely to shift toward stock-specific actions as the Q2FY26 earnings season gains momentum, particularly in banking, IT, capital goods, and consumption sectors.

On Monday, October 6, Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 313.77 crore, marking their 10th consecutive day of selling. On the other hand, Domestic Institutional Investors (DIIs) were net buyers, purchasing equities worth Rs 5,036.39 crore and extending their 29-session buying streak.

Indian markets extended gains for the third consecutive session on Monday. The Nifty 50 advanced 183.40 points (0.74 per cent) to close at 25,077.65, while the Sensex gained 582.95 points (0.72 per cent) to settle at 81,790.12. The uptrend was led by financial and IT stocks, with India VIX rising over 1 per cent.

Banking stocks drove the rally following robust Q2 business updates from HDFC Bank and Kotak Mahindra Bank. The Bank Nifty jumped 515 points (0.93 per cent) to reclaim the 56,000 level. The Nifty Financial Services and Private Bank indices rose over 1 per cent each, while the Nifty IT index surged 2.28 per cent ahead of Quarterly Results. Broader indices also closed higher, with Nifty Midcap and Smallcap ending in the green.

In the US, markets ended mixed on Monday. The S&P 500 gained 24.49 points (0.36 per cent) to close at 6,740.28, and the Nasdaq advanced 161.16 points (0.71 per cent) to finish at 22,941.67, both marking record highs. The Dow Jones Industrial Average, however, slipped 63.31 points (0.14 per cent) to 46,694.97.

Investor sentiment in the US was boosted by optimism around AI-related mergers and acquisitions, despite the government shutdown entering its sixth day. Meanwhile, US President Donald Trump announced a 25 per cent import tariff on all medium- and heavy-duty trucks starting November 1, covering school buses, delivery vehicles, garbage trucks, and other commercial vehicles. He also expressed willingness to work with Democrats on healthcare reforms, while prioritising the reopening of the government.

Crude oil prices remained firm after a smaller-than-expected output hike by OPEC+. WTI crude futures traded around USD 61.7 per barrel, while Brent crude hovered near USD 65.5 per barrel.

The US dollar index recovered slightly to 98.177, reversing part of its recent decline. Gold prices continued their upward trajectory, touching a record high near USD 4,000 an ounce, as the US government shutdown and France’s political crisis increased market uncertainty. On October 6, MCX gold futures closed at Rs 1,20,249 per 10 gm, up Rs 2,136 or 1.81 per cent.

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

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