SGX Nifty October 2026 futures declined by 121.50 points, indicating a subdued start for the Nifty 50. Market participants will closely monitor the policy decision from the Reserve Bank of India scheduled for later today. The RBI is anticipated to increase the benchmark repo rate by 25 basis points to 5.50%, up from 5.25%, a level it has maintained for almost 10 months.
Institutional Flows:
On 6 October 2026, foreign portfolio investors divested shares amounting to Rs 2,961.30 crore, whereas domestic institutional investors recorded net purchases totalling Rs 5,088.92 crore in the Indian equity market, as per provisional data. Foreign Portfolio Investors divested shares amounting to Rs 23,485.97 crore in October, specifically through 6 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:
Asian indices exhibited a mixed performance on Wednesday, 7 October 2026, as mainland Chinese markets were closed for a holiday. Investors were monitoring Wall Street’s record-setting close, fluctuations in US Treasury yields, and changes in oil prices. US stocks concluded the trading session on Tuesday, 6 October 2026, with both the S&P 500 and Nasdaq Composite achieving record highs. This upward movement was bolstered by declining Treasury yields and stable crude oil prices, which enhanced investor risk appetite. The attention has now turned to the Federal Reserve’s meeting minutes scheduled for release later on Wednesday, alongside the impending third-quarter earnings season.
The Dow Jones Industrial Average gained 253.38 points, or 0.49%, to 51,521.28, while the S&P 500 rose 45.00 points, or 0.58%, to 7,818.93. The Nasdaq Composite advanced 122.48 points, or 0.45%, to 27,599.79. The S&P 500 and Nasdaq both closed at fresh record highs. Technology and artificial intelligence-related stocks continued to be significant contributors to the rally. Shares of semiconductor companies such as Advanced Micro Devices and Marvell Technology experienced an uptick, reflecting ongoing optimism regarding the demand for chips and the infrastructure that underpins artificial intelligence applications. Nvidia also remained near a $6 trillion market valuation, underscoring the persistent robustness of the AI investment theme. The rally also received a boost from the energy sector. Constellation Energy experienced a significant increase following the announcement of a substantial long-term electricity agreement with Google.
The agreement encompasses 3,590 MW of power, which includes a 20-year contract for 890 MW derived from nuclear capacity and an additional 15-year contract that pertains to 2,700 MW from Constellation’s current PJM assets. Constellation plans to invest more than $4.3 billion to increase output at 11 nuclear reactor units. The agreement highlights the growing demand for reliable electricity as technology companies expand energy-intensive data-centre and AI infrastructure. The deal also reinforced investor interest in companies positioned to benefit from the increasing power requirements of AI data centres. Constellation shares rose more than 12% on Tuesday, while other nuclear and power-related stocks also advanced.
US Treasury yields eased from their recent highs, providing some relief to equity markets. The 10-year Treasury yield ended around 5.27%, down roughly 3 basis points, while the two-year yield declined to around 4.80%. The 10-year yield had climbed to about 5.35% on Monday, its highest level in more than two decades, increasing pressure on interest-rate-sensitive assets. Meanwhile, the US trade deficit widened sharply in August to $105.6 billion, up 13.7% from the previous month and the largest since March 2025. The increase was driven largely by a jump in imports, including crude oil, semiconductors and other goods, with imports reaching a record level.
Domestic Market:
The key equity benchmarks ended sharply higher on Tuesday, extending gains for a second consecutive session. The firmness was supported by positive global cues, easing crude oil prices and strong quarterly business updates from several companies. Investors also remained focused on the Reserve Bank of India’s monetary policy meeting, with the policy decision due on Wednesday, 7 October. The Nifty closed above the 22,750 mark.
At the sectoral level, Nifty Bank, Consumer Durables, Energy, Media, Metal, Pharma, Oil & Gas and Private Bank indices closed higher, while Nifty IT, Realty and PSU Bank indices declined. The S&P BSE Sensex experienced an increase of 685.34 points, reflecting a rise of 0.95%, reaching a level of 73,067.81. The Nifty 50 index experienced an increase of 220.35 points, reflecting a rise of 0.98%, reaching a level of 22,776.10. Over two consecutive sessions, the Sensex and Nifty have increased by 1.61% and 1.58%, respectively.
