Global Markets Today, October 27, 2026: Asia Rallies, Wall Street Gains; Oil Prices Keep Dalal Street Cautious

Mumbai, October 27: Indian equity benchmarks Sensex and Nifty 50 are likely to see a cautious start on Tuesday, October 27, despite gains across Asian markets and an overnight rally on Wall Street, as elevated crude oil prices and persistent inflation concerns continue to weigh on investor sentiment. Investors will also track global earnings, US monetary policy signals and foreign fund flows for further direction. 

Asian Markets Rally, South Korea Leads Gains 

Asian stocks rallied on Tuesday, led by a sharp advance in South Korean equities and gains in Japan, as investors drew encouragement from artificial intelligence-related developments including blockbuster IPO filing from AI bellwether Anthropic and positioned themselves ahead of a busy week of corporate earnings and central bank decisions. 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6%, while South Korea’s KOSPI surged 3.7% and Japan’s Nikkei 225 advanced 1.9%. 

The gains followed renewed optimism around artificial intelligence and expectations that earnings from major technology companies could help sustain the global equity rally. However, investors remain watchful of whether substantial spending on AI infrastructure will translate into durable revenue growth and profitability. 

Wall Street Ends Higher Ahead of Tech Earnings 

US stocks ended higher on Monday, with technology shares leading the advance after AI company Anthropic disclosed plans for an initial public offering, renewing investor interest in the sector. 

The Dow Jones Industrial Average rose 146.42 points, or 0.28%, to 52,361.58. The S&P 500 gained 0.70% to 7,676.77, while the Nasdaq Composite advanced 0.83% to 26,169.38. 

Investors are now preparing for quarterly results from major technology companies, including Alphabet, Microsoft and Amazon, which could provide fresh evidence of the strength of AI-related demand and the sustainability of elevated valuations. 

The US Federal Reserve’s policy decision on Wednesday is another key event. Markets largely expect the central bank to leave interest rates unchanged, with investors looking for clues about the outlook for borrowing costs and inflation. 

Crude Oil Retreats, but Supply Concerns Persist 

Crude oil prices eased on Tuesday after a recent rally, offering some relief to oil-importing economies. Brent crude futures fell 0.9% to $114.7 per barrel, while US West Texas Intermediate also traded lower. 

However, prices remained elevated amid concerns over potential supply disruptions and geopolitical tensions in the Middle East. Reports of attacks on Saudi Arabian infrastructure have added to uncertainty over supplies, while hopes of diplomatic efforts to ease regional tensions have offered limited relief. 

For India, persistently high crude prices threaten to push up imported inflation, widen the current account deficit and put pressure on corporate margins. Higher energy costs could also constrain the Reserve Bank of India’s policy flexibility. 

Foreign Fund Outflows Remain a Headwind 

Foreign investor selling remains another concern for domestic equities. Foreign portfolio investors sold Indian equities worth Rs 1,462 crore on Monday, extending October’s outflows and highlighting continued caution towards Indian stocks. 

While strength in Asian markets and overnight gains on Wall Street could provide some support, elevated crude prices and sustained foreign fund withdrawals may limit the upside for domestic benchmarks. 

Investors will track oil prices, foreign fund flows, corporate earnings and global monetary policy signals to gauge the market’s direction. The combination of positive global cues and persistent domestic macroeconomic concerns could leave the Sensex and Nifty 50 headed for a cautious start. 

Source

• Exchanges