Gift Nifty signals a positive opening for Indian equities despite the decline in Diwali Muhurat trading. Foreign institutional inflows, softer crude oil prices and gains across Asian markets could support the bullish momentum.
Indian equities could extend their recent rally on Monday, supported by positive global cues, rising US stock futures and renewed gains in Asian markets. A decline in crude oil prices amid easing concerns over a potential conflict involving Iran has improved investor sentiment, while gold prices have moved higher on expectations of easing inflationary pressures.
Although the benchmark indices ended marginally lower during Sunday's special Diwali Muhurat trading session, investors expect the broader bullish trend to continue, supported by strong foreign fund inflows.
Gift Nifty, which closed at 25,038.50 on Friday night, ended at 24,977 after the Muhurat session. It slipped to 24,930 early Monday before recovering sharply to 25,110, indicating a potentially strong opening for the domestic market.
Political uncertainty in Washington remains a concern for global investors. Democrats, who secured majorities in both chambers of the US Congress, are reportedly pushing for tighter regulation of artificial intelligence and data centres.
The possibility of investigations into President Donald Trump could further intensify tensions between the White House and Capitol Hill.
The reported replacement of White House Chief of Staff Susie Wiles with Stephen Miller has also raised expectations of a more confrontational political approach. Hopes that Trump might adopt a conciliatory stance following the election setback appear to have weakened.
Disagreements over government spending could prolong the confrontation. Democrats have reportedly indicated opposition to a proposed $1.5 trillion defence budget.
Nvidia has emerged as another source of uncertainty for US technology investors. The source report contains allegations concerning Nvidia CEO Jensen Huang and his past association with Alice Huang, who was reportedly connected with cloud computing company Megaspeed.
The allegations include claims about possible intelligence links and concerns over the potential exposure of sensitive technology information. The report also refers to a possible independent investigation by Nvidia's board.
US equities attempted to recover on Friday following Thursday's sharp decline, supported by bargain hunting at lower valuations. However, the recovery remained uneven, suggesting that investor confidence has yet to strengthen substantially.
Microsoft's reported decision to reduce the number of new cloud partners has raised concerns about potential constraints on AI-related expansion. The company has also reportedly abandoned plans to lease additional AI computing capacity from Oracle.
Meanwhile, stronger-than-expected US employment data have renewed concerns about interest rates. The increase in October non-farm payrolls was reportedly more than twice market expectations. Strong labour market conditions could strengthen the case for the US Federal Reserve to maintain a restrictive monetary policy or consider further tightening.
Higher interest rates would generally support the dollar and US bond yields while increasing financing costs for businesses dependent on borrowing.
On Friday, the Dow Jones Industrial Average declined 237.33 points, or 0.46%, to close at 51,285.73.
The S&P 500 gained 23.13 points, or 0.31%, to finish at 7,376.86, while the Nasdaq Composite advanced 264.43 points, or 1.09%, to 24,579.43.
US stock futures turned positive on Monday after initial volatility. Dow Jones futures gained 355 points, or 0.69%, while S&P 500 futures advanced 27 points, or 0.36%. Nasdaq futures rose 42 points, or 0.16%.
The gains suggest improving sentiment ahead of the US trading session.
Indian companies listed through American Depositary Receipts (ADRs) recorded mixed movements in New York on Friday.
HDFC Bank's ADR rose 1.78% during regular trading and subsequently gained 0.24% in extended trading to close at $25.20.
ICICI Bank advanced 4.18% during regular trading before slipping 0.79% in the subsequent session to $33.62.
Infosys declined 2.34% during regular trading but recovered 1.60% in extended trading to $12.70.
Wipro remained unchanged at $2.16 during both regular and extended trading.
European equities recorded substantial losses on Friday amid concerns that a Democrat-controlled US Congress could introduce stricter regulations affecting AI companies.
Defence stocks also came under pressure. German defence manufacturer Rheinmetall declined 22% over two sessions after lowering its annual earnings outlook for the second time.
Other defence companies, including Hensoldt, Lockheed Martin, BAE Systems and Thales, recorded declines of more than 10% over the week.
Most Asian equity markets opened Monday with gains, supported by stronger US futures and improving investor sentiment. South Korea's Kospi advanced 0.50%, while semiconductor companies SK Hynix and Samsung Electronics rose nearly 2%.
Japan's Nikkei surged 3.35%. However, SoftBank Group, which has substantial investments in semiconductor-related businesses, fell as much as 5%. The stock has reportedly lost 42% over the past month.
Australia's benchmark index declined 0.55%. Taiwan's market advanced 4%, with Taiwan Semiconductor Manufacturing Company also rising around 4%.
China's Shanghai Composite gained 0.65%, while Hong Kong's Hang Seng climbed 1.05%.
Indian equities surged on Friday as foreign institutional investors continued their aggressive buying. Foreign investors purchased shares worth ₹14,974.68 crore on Thursday, followed by another ₹13,749.82 crore on Friday.
Market participants believe part of these inflows may reflect a shift in global fund allocations away from AI and semiconductor stocks in the US, South Korea, Japan and Taiwan towards Indian equities.
Foreign investors invested ₹38,971 crore during the week, taking their cumulative investment over seven trading sessions to approximately ₹49,500 crore.
The sustained buying helped the Sensex gain 7,782 points over seven sessions.
During the week, the Nifty advanced 1,977.25 points, or 8.57%, while the Sensex surged 6,568.49 points, or 8.82%.
The Sensex crossed 81,000, while the Nifty reclaimed the 25,000 mark.
The recovery helped the benchmark indices substantially reduce their losses since the previous Diwali. At Friday's close, the Sensex was down around 4% over the period, while the Nifty's decline stood at approximately 3.4%. Both indices had been nearly 10% lower just two weeks earlier.
The Nifty Midcap 100 rose 5.7% during the week, while the Nifty Smallcap 100 gained 2.6%.
BSE-listed companies' combined market capitalisation reached approximately ₹503 lakh crore, equivalent to $5.34 trillion. The market capitalisation of NSE-listed companies stood at around ₹499.18 lakh crore, or $5.30 trillion.
Banking and financial stocks lead Friday's gains: Most sectoral indices advanced on Friday, with media and defence stocks being the exceptions. Banking, financial services, pharmaceuticals and consumer durables were among the leading gainers.
However, the broader market showed signs of weakness despite the sharp rise in benchmark indices. On the BSE, 1,775 stocks advanced while 2,627 declined. On the NSE, 1,438 stocks gained and 2,141 ended lower.
Foreign portfolio investors recorded net purchases of ₹13,749.82 crore in the cash market, while domestic institutional investors were net sellers of ₹5,968.70 crore.
The Sensex surged 1,718.01 points, or 2.17%, to close at 81,028.02. The Nifty 50 gained 493.75 points, or 2.01%, to end at 25,030.35. Bank Nifty advanced 1,312.35 points, or 2.27%, to 59,086.00.
However, the Nifty Midcap 100 declined marginally by 14.25 points, or 0.02%, to 60,606.65. The Nifty Smallcap 100 fell 157.40 points, or 0.82%, to 18,975.05.
India's benchmark indices ended lower during Sunday's special Diwali Muhurat trading session, marking their first decline in the festive session in nine years.
Trading remained largely range-bound, with limited volatility. The Sensex slipped below 81,000, while the Nifty closed below 25,000.
Nevertheless, the broader market remained positive, with midcap and smallcap stocks outperforming the benchmarks. On the BSE, 3,262 stocks advanced against 955 declines. The NSE recorded 2,707 gainers and 730 losers.
The combined market capitalisation of BSE-listed companies increased to ₹505.72 lakh-crore, or approximately $5.37 trillion. NSE-listed companies' market capitalisation reached ₹501.28 lakh crore, equivalent to $5.32 trillion.
The Sensex declined 28.62 points, or 0.04%, to 80,999.40. The Nifty 50 fell 43.95 points, or 0.18%, to 24,986.40. Bank Nifty lost 235.35 points, or 0.40%, to finish at 58,850.65.
In contrast, the Nifty Midcap 100 gained 81.50 points, or 0.13%, to 60,688.15, while the Nifty Smallcap 100 advanced 191.35 points, or 1.01%, to 19,166.40.
International gold prices rebounded on Monday after declining on Friday amid stronger US employment data and uncertainty surrounding equities.
Expectations of reduced geopolitical tensions involving Iran, along with a fresh decline in crude oil prices, helped improve sentiment in the bullion market. Gold had declined $17.10, or 0.42%, on Friday to close at $4,072.10 per ounce.
Early Monday, the precious metal surged 1.25% to touch $4,125.90 per ounce.
In Kerala, the price of 22-carat gold fell by ₹1,880 per sovereign on Friday. It subsequently rose by ₹80 on Saturday to ₹1,05,280.
Silver closed marginally higher at $52.07 per ounce on Friday before jumping approximately 2.5% to $53.46 early Monday.
Other precious metals were quoted at:
Platinum: $1,553 per ounce
Palladium: $1,021 per ounce
Rhodium: $8,650 per ounce
Rubber prices strengthened in international markets but declined in Kerala. In Bangkok, RSS-1 rubber was quoted at $280.70 per quintal, while RSS-3 stood at $277.30. In Kerala, the price of RSS-4 rubber fell to ₹29,600 per quintal.
Industrial metal prices weakened on Friday. Copper declined 1.10% to $13,955 per tonne, while aluminium fell 1.18% to $3,049.30. Zinc dropped 3.04%, while tin lost 3.69%. Lead and nickel recorded marginal declines.
However, several industrial metals showed signs of recovery in early Monday trading.
Cocoa prices declined 0.50% to close at $5,155 per tonne. Arabica coffee rose 1.03% to $2.80 per pound. Palm oil prices dropped 2.72% to 4,258 Malaysian ringgit per tonne.
The US dollar index rose sharply on Friday to close at 102.30 before easing to 102.21 early Monday.
The euro weakened to $1.1156, while the British pound traded at $1.337. The Japanese yen declined to 158.17 against the dollar, while the Chinese yuan strengthened to 6.68 per dollar.
The yield on the benchmark US 10-year Treasury note rose to 4.872% early Monday.
The Indian rupee strengthened considerably on Friday, gaining 56 paise to close at ₹93.91 against the US dollar. In the offshore forward market early Monday, the dollar was quoted at ₹93.96.
The Chinese yuan weakened to ₹14.09, while the euro declined to ₹104.62.
Crude oil prices moved lower on Monday following indications from US President Donald Trump that the possibility of a conflict involving Iran had diminished.
Brent crude had edged higher on Friday to close at $98.32 per barrel amid continued uncertainty over Iran.
However, prices fell approximately 1.25% early Monday to $97.25 per barrel. West Texas Intermediate crude was quoted at $90.41 per barrel.
The decline in oil prices is expected to support sentiment in India, which depends heavily on imported crude.
Major cryptocurrencies continued to decline. Bitcoin slipped below $75,000, while Ethereum fell below $2,135. Solana traded below $87.50.
The weakness indicates that risk appetite remains uneven across global financial markets despite the recovery in equity futures.
(Friday, November 6)
Sensex: 81,028.02 (+2.17%)
Nifty 50: 25,030.35 (+2.01%)
Bank Nifty: 59,086.00 (+2.27%)
Nifty Midcap 100: 60,606.65 (-0.02%)
Nifty Smallcap 100: 18,975.05 (-0.82%)
Dow Jones: 51,285.73 (-0.46%)
S&P 500: 7,376.86 (+0.31%)
Nasdaq: 24,579.43 (+1.09%)
US dollar: ₹93.91 (-₹0.56)
Gold (ounce): $4,072.10 (-$17.10)
Gold (sovereign): ₹1,05,200 (-₹1,880)
Gold (sovereign, Saturday): ₹1,05,280 (+₹80)
Brent crude: $98.32 (+$0.03)
Sunday, November 8, 2026
Sensex: 80,999.40 (-0.04%)
Nifty 50: 24,986.40 (-0.18%)
Bank Nifty: 58,850.65 (-0.40%)
Nifty Midcap 100: 60,688.15 (+0.13%)
Nifty Smallcap 100: 19,166.40 (+1.01%)