SGX Nifty October 2026 futures have increased by 2.50 points, indicating a subdued start for the Nifty 50.
IT stocks are likely to attract attention following the US government’s suspension of eight technology firms, which include Microsoft, Adobe, Infosys, Wipro, Tata Consultancy Services, HCL Technologies, Cognisant, and Capgemini, from the Permanent Labour Certification program. This program is a crucial component of the employment-based green card process. US officials have alleged that the companies have improperly utilised employment-based immigration programs, resulting in the displacement of American workers. The suspension halts new and pending PERM applications involving the affected companies.
Institutional Flows:
On 8 October 2026, foreign portfolio investors divested shares amounting to Rs 12,943.58 crore, whereas domestic institutional investors recorded net purchases totalling Rs 10,703.11 crore in the Indian equity market, as indicated by provisional data. Foreign Portfolio Investors divested shares amounting to Rs 32,182.50 crore in October, as of 8 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:
On Friday, 9 October 2026, the Asian stock market experienced a predominantly downward trend, reflecting the overnight declines observed on Wall Street. This movement was largely influenced by mounting pressures on technology stocks, driven by renewed apprehensions regarding the artificial intelligence boom. Markets in South Korea and Taiwan were closed due to a holiday. The US stock market concluded Thursday with a mixed performance, as the Nasdaq Composite experienced its most significant one-day drop since mid-August.
The Dow Jones Industrial Average experienced a modest increase of 0.10%, in contrast to the S&P 500, which recorded a decline of 0.47%. The Nasdaq Composite experienced a decline of 1.25%. Technology stocks experienced significant declines after reports emerged indicating that OpenAI informed investors its annualised revenue stood at approximately $50 billion as of the end of September, a figure that falls short of the nearly $68 billion reported in the previous month. The discrepancy has reignited concerns regarding the sustainability of expenditures related to AI and the returns on investments in data centers and semiconductor infrastructure.
Among major technology stocks, Nvidia experienced a decline of 2.94%, Advanced Micro Devices saw a decrease of 3.90%, Broadcom fell by 4.35%, Microsoft slipped 1.35%, Intel recorded a loss of 5.34%, Micron Technology declined by 4.79%, and Oracle faced a drop of 5.5%. The widespread decline indicated a level of investor apprehension regarding technology stocks, fuelled by uncertainties surrounding the speed of AI-driven expansion. Investors are currently anticipating the commencement of the third-quarter earnings season next week, during which prominent U.S. banks are scheduled to disclose their results.
Domestic Market:
The Indian equity market experienced a continuation of its selloff for the second consecutive session on Thursday, with the Sensex declining by 1.44% to 71,593.24 and the Nifty 50 decreasing by 1.64% to 22,231.80. This downturn was influenced by rising crude oil prices, the Reserve Bank of India’s hawkish policy shift, increased US Treasury yields, and ongoing foreign investor outflows, all of which contributed to a negative sentiment in the market.
All NSE sectoral indices concluded the trading session in the negative territory, although a majority of IT stocks defied the prevailing trend. Weak global cues and widespread selling heightened risk aversion, as investors exercised caution with the onset of the Q2 FY27 earnings season. Over the two sessions, the Sensex experienced a decline of 2.02%, while the Nifty 50 saw a decrease of 2.39%.
