12 October 2026 Punjab Khabarnama Bureau : Indian equity markets were poised for a positive start on Monday, October 12, as gains in GIFT Nifty indicated a modest rise in benchmark indices, Sensex and Nifty 50. The outlook followed a strong recovery in the previous session, when buying in information technology stocks helped markets rebound after two consecutive sessions of sharp declines. However, persistent foreign investor selling and global economic uncertainty continued to limit optimism.
GIFT Nifty was trading around 22,625–22,641 in early trade, indicating a mildly positive opening for domestic equities. The market had ended Friday’s session on a firm note, with the Sensex rising 879.09 points, or 1.23%, to close at 72,472.33. The Nifty 50 advanced 288.65 points, or 1.30%, to settle at 22,520.45. The rebound offered some relief after a prolonged period of weakness, although analysts cautioned that one strong session was not enough to confirm a sustained market recovery.
IT stocks support market recovery
Buying in information technology shares was among the key factors supporting Friday’s rally. Stronger-than-expected business updates and encouraging signals around technology-sector earnings helped improve sentiment. Investors are expected to continue tracking quarterly results and management commentary for clues about corporate earnings growth and demand conditions.
Despite the rebound, the broader technical picture remained fragile. The Nifty continued to face resistance around important moving-average levels, while analysts highlighted the need for sustained buying and stronger price action before declaring a durable uptrend. The index’s ability to hold key support levels will remain important in determining whether the recovery can extend through the coming sessions.
Global cues remain mixed
Overseas markets offered a mixed backdrop for Indian equities. US stocks and futures showed strength, while Asian markets traded unevenly. Investors were also watching developments in crude oil prices, the US dollar and upcoming American inflation data, which could influence expectations around the Federal Reserve’s interest-rate decisions.
Oil prices eased amid expectations of reduced energy-supply pressures following developments involving Russia and Ukraine. Brent crude, however, remained above $100 per barrel, keeping concerns over India’s import bill, inflation and currency stability in focus. Any renewed escalation in geopolitical tensions could reverse the recent decline in oil prices and weigh on investor sentiment.
RBI measures and rupee movements in focus
The Reserve Bank of India’s latest measures to support the rupee were another factor being monitored by market participants. The central bank introduced steps aimed at redirecting oil companies’ dollar purchases away from the spot market and tightening certain hedging rules. These measures are intended to reduce pressure on the currency and limit volatility.
A more stable rupee and softer crude prices could provide some relief to domestic markets by easing imported inflation concerns. Nevertheless, the currency remains under pressure from external factors, and investors will closely monitor whether the RBI’s actions help improve stability in the foreign-exchange market.
Foreign investor selling remains a concern
Foreign institutional investors continued to sell Indian equities, extending their selling streak to 11 consecutive sessions. On Friday, foreign portfolio investors sold shares worth approximately ₹3,569 crore. Domestic institutional investors, meanwhile, provided support by purchasing equities worth around ₹4,743 crore.
The divergence between foreign and domestic flows remains an important factor for the market. Continued foreign outflows could restrict the strength of any rally, particularly if global bond yields, oil prices or geopolitical risks remain elevated. Domestic institutional buying may help cushion declines, but investors will look for signs that foreign selling is easing before adopting a more confident outlook.
Market outlook
The session was expected to begin on a positive note, but traders were likely to remain selective amid mixed international cues and continuing foreign fund outflows. Market direction will depend on whether buying momentum strengthens, crude oil prices remain under control and the rupee stabilises.
Investors will also track quarterly earnings, movements in global markets and technical levels on the Nifty and Sensex. Analysts continue to advise caution, as the latest rally may represent short-term relief rather than the beginning of a sustained upward trend.
30-word summary: GIFT Nifty signals a positive opening for Indian markets after Friday’s rally. Softer oil and RBI measures may support sentiment, but foreign selling, geopolitical tensions and global uncertainty warrant caution.