Stock Market Today: GIFT Nifty Signals Muted Start for Nifty 50, Sensex; TCS, HCL Tech, Ola Electric in Focus
Indian equity markets are likely to open on a cautious note on Thursday, October 8, after the Nifty 50 and Sensex ended sharply lower in the previous session following the Reserve Bank of India's unexpected interest-rate hike and a shift towards a tighter monetary policy stance.
GIFT Nifty futures were trading around 22,600.5, indicating a subdued opening for the Nifty 50, which closed at 22,603.05 on Wednesday. The Sensex had fallen 429.11 points, or 0.59%, to close at 72,638.70, while the Nifty declined 173.05 points, or 0.76%.
RBI rate hike weighs on investor sentiment
The RBI raised its benchmark repo rate by 25 basis points to 5.50% on Wednesday, marking its first rate increase in nearly four years. The central bank also changed its policy stance from "neutral" to "calibrated tightening", raising expectations that monetary conditions could remain restrictive for longer.
Higher interest rates can increase borrowing costs for companies and consumers and may put pressure on equity valuations, particularly when investors are already concerned about global inflation and rising crude oil prices.
Crude oil crosses $101 a barrel
Oil prices remain another major factor for Indian markets. Brent crude moved above $101 per barrel amid concerns over Middle East supplies and disruptions affecting shipping in the Gulf and Strait of Hormuz.
Higher crude prices are particularly important for India because the country imports a large portion of its oil requirements. Expensive crude can increase inflationary pressure and put additional pressure on the rupee.
FII selling remains a concern
Foreign investors continued to sell Indian equities. Provisional data showed foreign investors sold around ₹6,121 crore worth of Indian shares on Wednesday, marking their ninth consecutive session of net selling.
Persistent foreign outflows, combined with higher global bond yields and a weaker rupee, could keep market sentiment cautious in the near term.
TCS in focus as earnings season begins
Tata Consultancy Services (TCS) is expected to remain one of the biggest stocks in focus as India's September-quarter earnings season gets underway.
Investors will closely watch TCS's quarterly results and management commentary for indications about global technology spending, demand from key markets and the outlook for the IT services sector. Reuters identified TCS as a key market focus for Thursday.
HCL Tech, Ola Electric among stocks in focus
HCL Technologies is also likely to attract attention after its shares declined 1.52% on Wednesday to ₹1,183.80. The stock underperformed the broader market during the session.
Ola Electric is another stock on investors' radar following recent corporate developments. Other stocks expected to remain in focus include Adani Enterprises, Tata Power, Jubilant FoodWorks and Varun Beverages.
Global markets offer mixed signals
Asian equities opened lower on Thursday, while elevated US Treasury yields continued to weigh on global risk sentiment. The US 10-year Treasury yield was around 5.3%, according to market reports, while Brent crude remained above $100.
US equities also ended lower in the previous session, adding to the cautious tone ahead of India's market opening.
What investors should watch today
Traders are likely to track the movement of the Nifty 50 and Sensex, crude oil prices, the rupee-dollar exchange rate, Asian markets, US bond yields and foreign institutional flows.
The market may also remain sensitive to comments from RBI officials and developments in the Middle East because higher oil prices could increase India's inflation risks.
For Thursday's session, 22,600 on the Nifty 50 will be an important near-term reference point after the index closed at 22,603.05 on Wednesday. Investors will also watch whether the index can recover towards the 22,800 resistance zone highlighted by market analysts.
US Stock Market Today: Dow Falls Over 300 Points, Nasdaq and S&P 500 Slide as Yields Rise
U.S. stocks came under pressure on Wednesday as rising Treasury yields and higher oil prices weighed on investor sentiment, reversing part of the strong gains recorded in the previous session.
The Dow Jones Industrial Average fell more than 300 points in early trading, while the S&P 500 and Nasdaq Composite also moved lower. Reuters reported that the Dow dropped 325.06 points, or 0.63%, to 51,196.22 shortly after the opening bell. The S&P 500 fell 0.42% to 7,786.33, while the Nasdaq Composite declined 0.56% to 27,444.06.
The decline came just one day after the S&P 500 and Nasdaq reached record closing levels. Investors were reassessing risk as Treasury yields climbed sharply and oil prices moved higher.
Treasury yields put pressure on stocks
The rise in U.S. government bond yields was one of the main factors weighing on equities. The 10-year Treasury yield moved above 5.3%, reaching its highest level since 2002, according to market reports.
Higher yields can make bonds more attractive relative to stocks while also increasing borrowing costs for companies and consumers. Rising yields can be particularly challenging for high-growth technology companies because higher discount rates can reduce the present value investors assign to future earnings.
That contributed to selling pressure in technology and other growth-sensitive areas of the market.
Oil prices add to inflation concerns
Oil prices also moved higher, adding another layer of concern for investors.
Brent crude climbed above $100 a barrel, raising concerns that higher energy costs could put renewed pressure on inflation. Investors are watching the energy market closely because sustained increases in oil prices can affect consumer prices, corporate costs and expectations for monetary policy.
The combination of higher oil prices and rising bond yields created a less favourable environment for equities after Tuesday's record-setting session.
Fed minutes in focus
Investors were also waiting for the release of minutes from the Federal Reserve's September meeting.
The minutes are expected to provide additional clues about policymakers' thinking on inflation, interest rates and the outlook for the U.S. economy. The market is particularly sensitive to any indication that interest rates could remain elevated for longer than previously expected.
The latest market move therefore reflects more than a simple pullback from record highs. Investors are weighing strong corporate and artificial-intelligence-related optimism against rising borrowing costs and renewed inflation risks.
What investors are watching
The sharp reversal highlights the sensitivity of U.S. stocks to movements in Treasury yields. The S&P 500 and Nasdaq had reached fresh records on Tuesday as investors remained optimistic about artificial intelligence spending and the upcoming third-quarter earnings season.
With yields now climbing again, investors are watching whether the bond-market pressure persists and how companies perform as the earnings season gathers momentum.
For now, Wall Street remains caught between strong expectations for corporate profits and concerns that higher oil prices and elevated Treasury yields could make financial conditions tighter.
Bank of India Raises Repo-Linked Lending Rate to 8.35% After RBI Rate Hike: What Borrowers Should Know
Bank of India has raised its Repo Based Lending Rate (RBLR) by 25 basis points to 8.35%, following the Reserve Bank of India’s decision to increase the policy repo rate to 5.50%.
The revised Bank of India lending rate took effect on October 7, 2026, according to the bank’s regulatory disclosure. The move comes shortly after the RBI Monetary Policy Committee raised the repo rate by 25 basis points from 5.25% to 5.50%.
Bank of India RBLR rises to 8.35%
Before the latest change, Bank of India’s RBLR stood at 8.10%. The bank has now increased it to 8.35%, matching the 25-basis-point increase in the RBI’s repo rate.
The repo-linked component of the rate has moved from 5.25% to 5.50%, while the bank’s 2.85% markup remains unchanged.
The revision means borrowers whose loans are linked to Bank of India’s repo-based benchmark could see their borrowing costs rise, depending on the terms of their individual loan agreements.
What does the RBI rate hike mean?
The RBI increased the repo rate by 25 basis points to 5.50% on Wednesday, marking its first repo-rate increase since February 2023. The central bank also shifted its monetary policy stance from “neutral” to “calibrated tightening.”
The repo rate is the rate at which the RBI lends short-term funds to banks. When this benchmark rises, loans linked directly to external benchmarks can become more expensive.
For Bank of India customers with eligible floating-rate loans, the impact will depend on whether their loan is linked to the RBLR and on the reset mechanism specified in their loan agreement.
Will EMIs increase?
A higher benchmark rate can lead to higher interest costs for borrowers with floating-rate loans. Depending on the lender's reset rules, the effect may appear through a higher EMI, a longer repayment period, or a combination of both.
The impact will not necessarily be identical for every borrower because loan spreads, outstanding principal, remaining tenure and reset dates can differ.
Borrowers with fixed-rate loans generally do not face an immediate change in their contracted interest rate solely because the RBI raises the repo rate.
Home, vehicle and personal loans
The RBI's regulatory framework requires banks to link floating-rate retail and MSME loans to external benchmarks, with the policy repo rate being one permitted benchmark. Such loans are therefore more directly exposed to changes in the central bank's policy rate.
Borrowers should check their latest loan statement or contact Bank of India to confirm their applicable benchmark, spread, revised interest rate and next reset date.
Why the move matters
The Bank of India rate revision is an immediate example of how an RBI policy-rate change can pass through to bank lending rates.
The RBI's decision comes amid concerns over inflation and other economic pressures. The central bank has also raised its FY27 growth projection while adopting a tighter policy stance.
For borrowers, the key takeaway is that the cost of borrowing may rise for loans directly linked to the revised benchmark. Existing customers should therefore check how the new RBLR affects their particular loan rather than assuming that every Bank of India loan will see the same change.
Stock Market Today: GIFT Nifty Signals Weak Start for Sensex, Nifty Ahead of RBI Policy Decision
Indian equity markets are set for a cautious start on Wednesday, with GIFT Nifty pointing to a lower opening for the Sensex and Nifty 50 as investors await the Reserve Bank of India's monetary policy decision later in the day.
The weak opening indication comes after the domestic benchmarks recovered strongly over the previous two sessions. Rising crude oil prices, continued foreign investor selling and uncertainty over the RBI's next interest-rate move are keeping sentiment under pressure.
GIFT Nifty signals weak opening
GIFT Nifty was indicating a decline of around 100 points in early trading, pointing towards a weaker start for India's benchmark indices.
The signal comes after the Nifty 50 gained about 1% on October 6, extending its recovery for a second consecutive session. However, the broader market trend remains under pressure after the index suffered a prolonged decline.
Global cues were mixed. U.S. equities remained relatively strong, with the S&P 500 and Nasdaq reaching record levels, but Asian markets were weaker on Wednesday.
RBI policy decision in focus
The biggest domestic trigger for Wednesday's trading session is the RBI Monetary Policy Committee's decision.
The RBI is expected to announce its policy decision on Wednesday after its three-day meeting. Markets have largely priced in a 25-basis-point increase in the repo rate, which would take the rate above the current 5.25%.
Such a move would represent the first RBI rate hike since February 2023.
A Reuters poll found that nearly 60% of economists expected a 25-basis-point increase, while market instruments have also been reflecting expectations of a hike.
Investors will therefore be watching not only the rate decision but also the RBI's commentary on inflation, liquidity, economic growth and the future policy stance.
Crude oil remains a major risk
Oil prices are another major concern for Indian markets.
Brent crude returned above $101 a barrel, adding to concerns about India's import bill and inflation. Higher crude prices can also put pressure on the rupee and corporate margins.
India's dependence on imported crude makes oil prices particularly important for the domestic economy. A prolonged rise in energy costs could complicate the RBI's inflation-management efforts.
Rupee under pressure
The Indian rupee also remains under pressure ahead of the RBI decision.
The rupee closed at ₹96.42 against the U.S. dollar on October 6, its lowest level in about two months. Foreign equity outflows and higher global bond yields have contributed to the currency's weakness.
The RBI has been using several measures to manage liquidity and support the currency, including foreign-exchange operations and bond-market measures.
FII selling remains a concern
Foreign institutional investor outflows have been one of the biggest challenges for Indian equities in 2026.
Reuters reported that foreign investors had withdrawn around $27.8 billion from Indian equities during 2026, contributing to the market's prolonged weakness.
Higher U.S. Treasury yields have made dollar-denominated assets more attractive, while geopolitical uncertainty and elevated oil prices have further affected investor sentiment.
What investors will watch today
Apart from the RBI decision, traders are likely to track:
• RBI's repo-rate decision and policy stance
• Governor's comments on inflation and growth
• Brent crude prices
• Rupee-dollar movement
• FII and DII activity
• Asian market trends
• Banking and rate-sensitive stocks
The market's immediate reaction could depend heavily on whether the RBI's decision and guidance broadly match what investors have already priced in.
For now, the GIFT Nifty signal suggests a cautious opening, but the direction of the market through the session could be influenced significantly by the RBI's policy announcement and subsequent commentary.
IndiGo Airfares To Increase From Tomorrow As Jet Fuel Prices Rise
Air travel is set to become more expensive as IndiGo increases fuel charges from tomorrow, October 6, following a sharp rise in Aviation Turbine Fuel (ATF) prices.
The airline has revised fuel charges for both domestic and international flights. The new charges will apply to bookings made from 12:01 am on October 6, 2026.
Jet fuel prices rise sharply
IndiGo said the latest month-on-month increase in ATF prices has exceeded 14%, taking aviation fuel costs to among their highest levels in the past decade.
The airline said ATF represents a significant portion of airline operating costs. The increase in fuel prices has therefore put additional pressure on its cost structure.
ATF prices in India were increased by about ₹16 per litre, or roughly 13.2%, from October 1, taking the price from around ₹121 to ₹137 per litre.
Domestic airfares to get costlier
For domestic flights, IndiGo has increased the fuel surcharge depending on the distance of the journey.
The additional fuel charge will vary by route, with the increase reported at ₹100 to ₹350 per sector.
The revised total fuel charges for domestic bookings range from ₹375 for flights up to 500 km to ₹1,300 for flights covering more than 2,000 km.
This means passengers booking IndiGo flights from October 6 are likely to pay more than they would under the previous fuel-charge structure.
International flights also affected
The fuel-charge revision is not limited to domestic travel.
IndiGo has also revised fuel charges on international routes, with the amount varying according to the destination and distance. The airline said the adjustment has been made across its international network as fuel costs continue to rise.
The increase comes at a time when global energy markets remain volatile and geopolitical tensions have contributed to uncertainty around fuel prices.
Why airfares are rising
Fuel is one of the largest operating expenses for airlines. When jet fuel becomes more expensive, carriers face higher costs for operating each flight.
Airlines can absorb some of those costs, but sustained increases can eventually be passed on to passengers through fuel surcharges or higher ticket prices.
IndiGo said the continuing increase in fuel prices was the reason behind its decision to recalibrate charges across its domestic and international flights.
What passengers should know
Passengers who make new bookings from 12:01 am on October 6 will be subject to the revised fuel charges.
Existing bookings made before the new charges take effect will not be affected by this particular revision.
For travellers planning flights during the festive season, the higher fuel component could add to overall travel costs at a time when airfares on some routes are already under pressure from strong demand and limited capacity.
The latest move by IndiGo also highlights the wider impact of rising energy prices on India's aviation sector.
If jet fuel prices remain elevated, airlines could continue to face pressure on operating costs, potentially affecting ticket prices in the coming weeks.
Source attribution: Reuters, IndiGo, NDTV, Business Standard, Economic Times and India Today.
Stock Market Today: Key Factors to Watch Before Trading on October 5
Indian stock markets are set for a potentially volatile session on Monday, October 5, after the benchmark indices suffered their eighth consecutive weekly decline. A stronger GIFT Nifty is pointing to a positive opening, but elevated crude prices, heavy foreign selling, high US bond yields and a weak rupee remain major risks for investors.
GIFT Nifty Signals Positive OpeningGIFT Nifty was trading around 22,610–22,640 in early trade, indicating that the Sensex and Nifty could open higher on Monday.
However, the positive opening signal comes after a prolonged period of weakness. The Nifty 50 closed at 22,421.95 on October 1, while the Sensex ended at 71,909.70.
The October 2 session was a market holiday for Gandhi Jayanti.
Nifty Has Lost for Eight Straight Weeks
The Nifty's eight-week losing streak is the longest in roughly 25 years.
During the holiday-shortened week, the Nifty fell about 3.1%, while the Sensex declined around 2.7%. Persistent foreign selling, expensive crude, a weaker rupee and rising global bond yields have kept investors cautious.
The latest decline has also pushed the broader market into an oversold zone, raising the possibility of a short-term technical rebound. However, analysts continue to warn that a rebound may not signal a confirmed trend reversal.
FII Selling Remains a Major Concern
Foreign institutional investors remained aggressive sellers.
FIIs sold around ₹9,484 crore of Indian equities on October 1, marking their sixth consecutive session of selling. Their combined selling over those six sessions exceeded ₹43,000 crore.
Domestic institutional investors provided a significant counterweight, buying more than ₹10,000 crore of equities during the same session.
The continuing gap between foreign selling and domestic institutional buying will remain one of the most important signals for the market this week.
Crude Oil Still Above $100
Oil prices remain a major risk for Indian equities.
Brent crude was recently trading around $102–$103 a barrel, while US West Texas Intermediate crude was around $90–$92 a barrel.
The Middle East conflict and disruption around the Strait of Hormuz have kept concerns over global energy supplies elevated. OPEC+ also decided on October 4 to keep its November production targets unchanged, while actual output from key producers remains below official quotas.
For India, expensive crude can increase the import bill, put pressure on the rupee and complicate the inflation outlook.
US Bond Yields and Rupee Under Pressure
Global bond markets remain another major concern.
The US 10-year Treasury yield has climbed above 5%, reaching levels that have increased pressure on emerging-market assets.
At the same time, the Indian rupee has weakened sharply against the US dollar. A stronger dollar combined with high US yields can encourage foreign investors to move money away from emerging markets such as India.
This combination could keep volatility elevated even if domestic economic indicators remain relatively stable.
Wall Street Gives Some Relief
US markets provided a more supportive signal going into Monday.
On Friday, the Dow Jones Industrial Average rose 0.49%, the S&P 500 gained 0.73%, and the Nasdaq Composite advanced 1.19%.
The rally followed weaker-than-expected US employment data, which reduced expectations of another Federal Reserve rate hike in the near term.
The positive Wall Street close and gains in Asian markets could provide some initial support to Indian equities.
Asian Markets Mostly Higher
Asian markets were broadly positive in early trading on Monday.
Japan's Nikkei 225 was up more than 1.7%, while Australia's ASX 200 also gained. Markets in China and South Korea were closed for holidays.
The positive Asian cues are supporting expectations of a stronger opening on Dalal Street.
However, domestic investors are likely to remain focused on crude oil, institutional flows and the rupee rather than relying only on the opening trend.
Nifty Support and Resistance Levels
Technical levels will be closely watched after the recent decline.
According to market analysts, 22,600 is an important resistance zone for the Nifty. A sustained move above this level could open the way toward 22,800.
On the downside, 22,200 is an immediate support level. A decisive break below it could expose the index to the 22,000 zone.
This makes the 22,200–22,600 range particularly important during Monday's session.
Bank Nifty Levels
Bank Nifty also remains under pressure after the recent correction.
The 53,800–53,700 region has been identified as an important support zone. On the upside, 55,000–55,200 could act as resistance.
A sustained move above 55,200 could improve the short-term technical setup, while a break below support could increase selling pressure.
RBI Policy Meeting Begins
The Reserve Bank of India's Monetary Policy Committee meeting begins on October 5 and concludes on October 7, with the policy decision expected on October 7.
Investors will closely monitor the RBI's assessment of inflation, economic growth, the rupee and the impact of higher crude prices.
With global bond yields elevated and oil prices under pressure, the central bank's policy guidance could become an important market trigger.
Q2 Earnings Season Comes Into Focus
The September-quarter earnings season is also beginning.
Investors will watch company results and management commentary for signs of pressure from higher input costs, currency movements, weaker demand and geopolitical uncertainty.
Technology companies, banks, automobiles and other major sectors could see increased attention as companies begin reporting their second-quarter numbers.
What Traders Should Watch
The key factors likely to determine Monday's market direction are:
• GIFT Nifty and the opening gap
• FII and DII activity
• Brent crude and Middle East developments
• Rupee-dollar movement
• US Treasury yields
• RBI policy signals
• Q2 earnings expectations
• Nifty's 22,200 support and 22,600 resistance
A positive opening alone may not be enough to change the broader market trend. After eight consecutive weekly declines, investors are likely to watch whether buying continues through the session or whether early gains are sold into.
The immediate outlook therefore remains volatile and cautious, with global macroeconomic risks continuing to dominate sentiment.
Source attribution: Reuters, Associated Press, Financial Express, Moneycontrol, Economic Times, NDTV Profit, Livemint and other market reports.
OPEC+ Agrees in Principle to Keep November Oil Output Targets Unchanged
OPEC+ has agreed in principle to keep its oil production targets unchanged for November, three sources familiar with the discussions told Reuters, as the group faces continuing disruption to Gulf oil exports caused by the war involving Iran.
The decision comes as the world's major oil-producing alliance attempts to balance concerns over supply disruptions, elevated energy prices and uncertainty surrounding its production capacity. The group has been gradually increasing its output targets during 2026 after years of production cuts, but actual production has remained significantly below some targets because of the conflict in the Middle East.
November targets expected to remain unchanged
The seven core OPEC+ members — Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman — were due to meet on Sunday to discuss production policy.
Three sources close to the talks said the group had reached an agreement in principle to maintain the current targets for November. The sources spoke anonymously because the discussions were not yet public.
The decision would extend the group's cautious approach after OPEC+ kept its October targets unchanged.
Although OPEC+ has raised production targets for much of this year, the increases have not fully translated into additional physical supply because producers in the Gulf have faced major export disruptions.
Iran war disrupts Gulf oil exports
The continuing conflict involving Iran has significantly affected oil flows in the region.
According to the sources cited by Reuters, Gulf OPEC+ producers have been operating well below their production targets, while exports have fluctuated at around 60% to 80% of normal levels in recent months.
The disruption has added uncertainty to the global oil market at a time when crude prices are already elevated.
The Strait of Hormuz is particularly important to global energy markets because it is a major route for oil and liquefied natural gas shipments. Iran has said the waterway will remain closed until certain conditions are met, adding another layer of uncertainty for international energy supplies.
Actual production remains below targets
OPEC+ has increased its nominal production targets during 2026 after gradually rolling back earlier supply cuts.
However, actual output has not kept pace with those increases.
The seven core OPEC+ members produced around 25 million barrels per day in August, according to OPEC data cited by Reuters. That was an increase of approximately 630,000 barrels per day from July, but production was still about 5 million barrels per day below February's pre-war level.
The gap between official targets and actual production highlights the impact of infrastructure damage, export disruptions and broader logistical difficulties caused by the regional conflict.
Around 2 million barrels per day of cuts remain
Despite the gradual increase in targets, OPEC+ still has roughly 2 million barrels per day of production cuts covering most members through the end of 2026.
The group now faces an important decision over how those cuts should be handled in 2027.
A major capacity review is expected to help determine new production baselines for individual members. The review has been delayed because the Middle East conflict disrupted planned expansion projects and made it harder to assess future production capacity.
The review is now expected to be completed around mid-November, according to sources cited by Reuters.
2027 quotas remain a major issue
The capacity assessment will be important because it could influence how much oil individual OPEC+ members are permitted to produce next year.
Countries that have expanded their production capacity are seeking higher quotas, while producers with lower assessed capacity could face more limited production allowances.
The United Arab Emirates had previously pushed for a larger quota reflecting its increased capacity, but it left the OPEC+ alliance in May following disagreements over production limits. Iraq has also sought a higher quota and has previously considered its future relationship with the group.
For now, however, the alliance appears focused on maintaining stability rather than making another major adjustment to its output targets.
What the decision could mean for oil prices
Keeping November targets unchanged could provide some stability to an already volatile oil market.
Crude prices have been supported by continuing geopolitical risks, disruptions to regional exports and concerns about fuel supplies. Reuters reported last week that Brent crude's November contract had gained around 14% during September, while the more actively traded December contract also rose sharply.
If physical supplies remain disrupted while OPEC+ keeps official targets unchanged, the market could remain sensitive to developments in the Iran conflict and the reopening of major export routes.
For oil-importing countries such as India, sustained high crude prices could increase pressure on fuel costs, trade balances and inflation.
OPEC+ takes cautious approach
The expected November decision reflects the difficult circumstances facing OPEC+.
The alliance is attempting to gradually unwind earlier production cuts while dealing with a major regional conflict that has disrupted exports and complicated its assessment of future production capacity.
Maintaining November targets would allow the group to monitor how quickly Gulf exports recover before making larger changes to supply policy.
The next major test will come with the capacity review and the negotiations over 2027 production quotas.
For the global oil market, however, the immediate focus will remain on the Iran conflict, the security of key shipping routes and whether Gulf producers can restore exports to normal levels.
Source attribution: Reuters and OPEC data cited by Reuters.
Rupee Falls to Two-Month Low as Global Bond Selloff and Higher Oil Prices Add Pressure
The Indian rupee weakened to a two-month low against the US dollar on Thursday as a global selloff in government bonds pushed borrowing costs higher and rising crude oil prices added fresh pressure on India's import bill.
The rupee ended at ₹96.315 per US dollar, down around 0.5% on the day. It was the currency's sharpest single-day decline in more than two months and came after the rupee breached the psychologically important ₹96 level.
The decline came amid a broad rise in global bond yields. The benchmark 10-year US Treasury yield climbed to about 5.34%, its highest level since 2002, according to Reuters. Higher US yields can make dollar-denominated assets more attractive and put pressure on emerging-market currencies such as the rupee.
Foreign investors add to pressure
Foreign portfolio outflows have also been weighing on the Indian currency.
Overseas investors have been reducing exposure to Indian equities and debt as global financial conditions become less favourable. The resulting demand for dollars has added to pressure on the rupee.
The rupee's decline has occurred alongside weakness in several other Asian currencies, while the US dollar index moved higher. Reuters reported that Asian currencies were down between roughly 0.1% and 0.4% on Thursday.
State-run banks were reported to have sold dollars during the session, helping limit the rupee's decline
Oil prices cross $100
Higher crude oil prices are another major concern for India, which imports a large share of its crude oil requirements.
Brent crude moved back above $100 a barrel as supply concerns and disruptions in global energy markets increased. Higher oil prices raise the cost of India's imports and can increase demand for US dollars from Indian oil companies.
This creates an additional challenge for the rupee because a weaker currency makes dollar-priced commodities such as crude oil more expensive in rupee terms.
Global bond yields hit markets
The bond-market selloff was not limited to the United States. Borrowing costs also rose across several major economies, including France, Britain and Japan.
Higher government bond yields can increase financing costs for governments and companies while reducing the relative attractiveness of riskier assets. The move has therefore affected currencies, equities and credit markets simultaneously.
Indian government bond yields also rose, with the benchmark 10-year yield reaching its highest level in more than two years, according to Reuters.
What it means for India
A sustained period of high oil prices and a weaker rupee could increase pressure on India's import costs and inflation outlook.
Higher energy costs can feed into transportation, manufacturing and other parts of the economy. At the same time, continued foreign portfolio selling can put additional pressure on domestic financial markets.
The Indian government said on Thursday that supply disruptions, volatile energy prices and global uncertainty could pose near-term risks to inflation, the rupee and capital flows.
However, the impact will depend on how long elevated oil prices and global bond yields persist and how global capital flows evolve.
Markets await US jobs data
Investors are also watching the latest US labour-market data for clues about the future path of US interest rates.
Stronger-than-expected US economic data could reinforce expectations for higher interest rates and potentially support the dollar, while weaker data could ease some of the pressure on global bond markets.
Indian financial markets were scheduled to remain closed on October 2 for Mahatma Gandhi Jayanti, meaning investors will assess the next available market session for the rupee's response to further moves in global currencies, bonds and crude oil.
For now, the combination of elevated oil prices, high global borrowing costs and foreign investor outflows remains an important source of pressure on the Indian currency.
Source attribution: This report is based primarily on Reuters market reporting and supporting current financial-market coverage. Figures and market levels refer to the October 1, 2026 trading session.