GIFT Nifty signals weak start as oil tops $110; FPIs sell Rs 52,483 crore in October

GIFT Nifty:

GIFT Nifty October 2026 futures were down 94 points, signalling a weak opening for the Nifty 50.

India's Index of Core Industries (ICI) grew 7.9% year on year in September 2026 on a provisional basis, compared with 5.9% in August, according to data released by the government on 21 October 2026. August's growth rate was revised upwards from the provisional estimate of 4.8% to 5.9%.

Iron ore production recorded the highest growth at 18.4%, followed by electricity at 11.4%, coal at 10.7%, refinery products at 10.3%, cement at 9.8% and steel at 4.9%. Fertilizer, natural gas and crude oil production declined by 11.7%, 4.6% and 1.4%, respectively, during September. Coal, refinery products, steel and iron ore were the major drivers of overall core sector growth in recent months, the government said.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 1,022.32 crore, while domestic institutional investors (DIIs) were net buyers of Rs 1,614.32 crore in the Indian equity market 21 October 2026, according to provisional data.

FPIs sold shares worth Rs 52,482.59 crore in October through 21 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 traded lower on Thursday, 22 October 2026, as concerns over artificial intelligence spending and escalating tensions in the Middle East offset support from strong US corporate earnings.

Investor sentiment remained cautious despite gains on Wall Street in the previous session. Markets assessed earnings from major technology companies, the outlook for AI infrastructure spending and the risk of disruptions to energy supplies in the Gulf. Rising crude oil prices added to inflation concerns ahead of upcoming central bank decisions.

The Bank of Korea kept its benchmark seven-day repurchase rate unchanged at 3.00% on Thursday, following consecutive rate increases in July and August.

South Korea's consumer inflation eased to 2.9% in September from 3.1% in August but remained above the central bank's 2% target. Strong semiconductor exports and persistent inflation pressures kept the possibility of further monetary tightening in focus.

Oil prices rose during early Asian trading on Thursday as escalating Middle East tensions heightened concerns over supply disruptions. Brent crude futures gained $1.29, or 1.2%, to $110.11 a barrel.

The rise followed attacks in Saudi Arabia, including a drone strike on an oilfield and an attack on an airport in Dammam. The United States ordered some diplomats and their family members to leave missions in Saudi Arabia. Reports of attacks on shipping in the Gulf of Oman also raised concerns about the security of regional oil supplies.

US stocks advanced on Wednesday, 21 October 2026, supported by corporate earnings and renewed interest in AI-related shares. The Dow Jones Industrial Average rose 360.21 points, or 0.69%, to close at 52,856.09. The S&P 500 gained 44.60 points, or 0.58%, to 7,757.17, while the Nasdaq Composite advanced 278.04 points, or 1.05%, to 26,702.86.

Meta Platforms reported revenue of $64.60 billion for the quarter ended 30 September 2026, up 26% year on year. Net income rose to $9.86 billion from $2.71 billion a year earlier, while diluted earnings per share increased to $3.83 from $1.05. However, the results included a $9.89 billion charge related to a legal settlement with US state attorneys general. Excluding this charge, diluted earnings per share would have been $7.40.

Meta forecast fourth-quarter revenue of $73 billion to $76 billion and raised its full-year expense outlook to $175 billion to $179 billion. Investors will monitor its capital expenditure plans and the returns on its AI investments.

Tesla reported third-quarter revenue of $28.05 billion, broadly unchanged from a year earlier. Net income attributable to common stockholders fell 43% to $787 million, while adjusted earnings per share of $0.48 exceeded analyst expectations. The company generated $1.53 billion in free cash flow during the quarter.

Tesla also lowered its projected 2026 capital expenditure to $20 billion from $25 billion. Its shares fell 3.2% in after-hours trading following the results. Investors will assess the implications of the revised spending outlook for the company's future growth and investment plans.

Domestic Market:

The domestic equity benchmarks ended lower for the second consecutive session on Wednesday, as rising crude oil prices and selling pressure in heavyweight stocks weighed on investor sentiment. The Nifty 50 closed below the 22,850 mark. The index surrendered early gains before recovering from their intraday lows on buying in IT stocks.

The broader market also slumped. Consumer durables, metal and auto shares tumbled while IT and cement shares bucked the weak market trend. Brent crude rose above $110 a barrel, heightening concerns over India's import bill, inflation and corporate margins.

The S&P BSE Sensex declined 143.21 points, or 0.19%, to 73,709.69, while the Nifty 50 lost 77.60 points, or 0.34%, to 22,811.35. In the two consecutive trading sessions, the Sensex declined 1.36%, while the Nifty 50 fell 1.45%.