Indian equity markets started October on a cautious note, with benchmark indices opening lower on Thursday as continued foreign fund outflows and weak global cues weighed on investor sentiment.
The 30-share BSE Sensex opened 120.30 points, or 0.17%, lower at 72,359.99, while the NSE Nifty50 declined 40.30 points, or 0.18%, to 22,580.15. Selling pressure remained visible across several sectors, although gains in select banking and information technology stocks offered some support.
The weak opening followed another subdued session on Wednesday. The Sensex ended 48.78 points lower at 72,480.29, while the Nifty50 slipped 95.75 points to close at 22,620.45. The benchmarks have remained under pressure as investors continue to monitor foreign fund flows, crude oil prices, the rupee and global interest-rate expectations.
Among the major Sensex stocks, Kotak Mahindra Bank, Infosys, HCL Technologies, Tata Consultancy Services and Axis Bank were among the gainers in early trade. Kotak Mahindra Bank attracted buying interest after the lender announced the appointment of Anup Kumar Saha as its new Managing Director and Chief Executive Officer for a three-year term beginning January 1, 2027.
The IT sector also provided some support to the market. The Nifty IT index gained in early trading, with Infosys, HCL Technologies and TCS among the stocks advancing. Investors were assessing recent US inflation data and its possible implications for the Federal Reserve’s interest-rate outlook. Any shift towards easier monetary conditions in the US could influence foreign flows into emerging markets, including India.
On the losing side, Mahindra & Mahindra, Maruti Suzuki, UltraTech Cement, Bharat Electronics, Eternal and Asian Paints were among the stocks under pressure. The auto sector was particularly weak, with investors tracking monthly sales numbers and demand trends.
The broader market remained cautious as selling extended beyond the headline indices. Several mid- and small-cap stocks also came under pressure, reflecting the risk-off mood at the start of the new month.
Foreign institutional selling continued to be a key concern. Foreign Institutional Investors sold Indian equities worth ₹10,148.41 crore on Wednesday, according to exchange data. Their sustained selling has remained one of the major factors weighing on domestic benchmarks in recent sessions.
Domestic institutional investors have provided some cushion through continued buying. However, the strength of domestic flows has not fully offset the impact of foreign selling, particularly as global yields remain elevated.
US Treasury yields have been closely watched by investors. The 10-year US Treasury yield remained around the 5.3% level, keeping pressure on emerging-market assets. Higher US yields can make dollar-denominated investments more attractive and can also increase the cost of capital for emerging economies.
The rupee opened weaker against the US dollar on Thursday. It started the session at ₹95.98, compared with Wednesday’s close of ₹95.83. The currency remained under pressure amid strong dollar demand and continued foreign portfolio outflows.
Crude oil prices, however, offered some relief. Brent crude was trading below the $100-a-barrel mark, providing a positive factor for India, which imports a significant share of its crude requirements. Lower oil prices can help reduce pressure on the country’s import bill, inflation and current account.
Global markets provided mixed signals. Asian equities were uneven, while investors continued to assess the outlook for US interest rates, inflation and economic growth. Markets in China and Hong Kong were closed for a holiday, limiting regional trading activity.
The domestic market’s recent weakness has also raised concerns about the duration of the ongoing correction. The Nifty and Sensex have been under pressure for several sessions, with investors becoming increasingly selective in their approach to equities.
Banking and IT stocks could remain in focus as investors look for sectors capable of providing stability amid broader volatility. At the same time, movements in automobiles, metals, cement and other cyclical sectors are likely to remain closely linked to domestic demand expectations and global commodity prices.
For investors, the immediate focus is likely to remain on foreign fund flows, crude oil prices, the rupee and US bond yields. Any improvement in global risk appetite could provide support to Indian equities, while continued foreign selling and elevated yields may keep gains limited.
As trading progresses, the ability of the Nifty to hold the 22,500-22,600 zone and the Sensex to remain above 72,000 will remain important market levels to watch. Investors are also expected to track stock-specific developments and fresh corporate announcements as the October trading session gathers pace.