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.
