GIFT Nifty October 2026 futures increased by 19 points, suggesting a slightly optimistic start for the Nifty 50.
Institutional Flows:
Foreign portfolio investors divested shares amounting to Rs 9,484.22 crore, whereas domestic institutional investors recorded net purchases totalling Rs 10,041.84 crore in the Indian equity market on 1 October 2026, as per provisional data. Foreign Portfolio Investors divested shares amounting to Rs 9,569.57 crore in October, specifically from 1 October 2026. This follows net selling of Rs 45,536.89 crore in September 2026, while FPIs were net buyers of Rs 17,366 crore in August 2026.
Global Markets:
Most Asian indices experienced an upward trend on Monday, despite a prevailing cautious sentiment among investors, influenced by elevated crude oil prices and high US Treasury yields. Markets in mainland China and South Korea were closed for holidays. Softer-than-expected US jobs data has tempered expectations regarding an interest rate hike by the US Federal Reserve at its upcoming October meeting. However, investors maintained a cautious stance as the US 10-year Treasury yield reached 5.34% last week, marking its highest level since 2002. Elevated yields raise borrowing costs and may exert pressure on equity valuations, even if the Fed maintains its policy rate in the short term. Meanwhile, crude oil prices continued to exhibit elevated levels.
Brent crude was trading around $102.20 a barrel on Monday morning after briefly moving above $103, as Saudi-backed Yemeni forces initiated a campaign to reclaim Houthi-controlled territories. Ongoing geopolitical tensions in the Middle East have sustained elevated concerns regarding oil supply. US stocks concluded the trading session on a positive note on Friday, as disappointing jobs data diminished the likelihood of a Federal Reserve rate increase at its upcoming policy meeting later this month. The Dow Jones Industrial Average increased by 250.40 points, representing a rise of 0.49%, reaching a level of 51,176.96. Concurrently, the S&P 500 experienced an uptick of 56.27 points, equivalent to a 0.73% gain, concluding at 7,722.72. The Nasdaq Composite advanced 319.27 points, or 1.19%, to 27,190.86.
US nonfarm payroll employment increased by just 29,000 in September, significantly underperforming relative to economists’ expectations of 90,000. The unemployment rate increased to 4.2% in August, up from 4.1% previously. Payroll gains for July and August experienced a downward revision, totalling a combined decrease of 60,000. The weaker-than-anticipated jobs data significantly diminished expectations for a 25-basis-point increase in the Fed rate at the end of October. CME FedWatch indicated a probability of a hike at 22.7%, a decrease from 24.4% in the prior session and significantly lower than the 64.2% observed a week earlier.
Domestic Market:
The key equity benchmarks concluded significantly lower on 1 October 2026, marking a continuation of their decline for the fourth consecutive session. Intensified selling by foreign institutional investors, coupled with rising US bond yields and a depreciating rupee, has negatively impacted investor sentiment. The sentiment persisted in a subdued state, influenced by elevated crude oil prices and ongoing uncertainty related to the US-Iran conflict. The Nifty concluded trading beneath the 22,450 threshold, with the broader markets experiencing a downturn as well. Automobile and metal stocks experienced a decline, whereas information technology shares defied the prevailing weak market trend.
The Sensex experienced a decrease of 570.59 points, representing a decline of 0.79%, closing at 71,909.70. The Nifty 50 index experienced a decline of 198.50 points, representing a decrease of 0.88%, closing at 22,421.95. In the four consecutive trading sessions, the Sensex and Nifty experienced declines of 2.69% and 3.11%, respectively. The Indian stock market was closed on 2 October 2026, on account of Mahatma Gandhi Jayanti.
