Shares Rise At Pre-Open Pointing To Rebound At Start

Mumbai, October 9: Indian shares rose at pre open signalling a higher start for benchmarks as stocks look to rebound after the selloff yesterday. 

Nifty 50 rose 0.3% and Sensex advanced 0.2% at pre open.  

Any recovery in Indian equities could face headwinds from elevated crude oil prices and fresh US restrictions on a green-card programme used by Indian IT outsourcing companies. The Sensex closed at a 32-month low in the previous session, while the Nifty 50 hit an 18-month low.  

The sell-off was driven by concerns over expensive oil, rising global bond yields and rupee weakness, which have added to inflationary pressures following the Reserve Bank of India’s rate hike earlier this week.  

Foreign portfolio investors (FPIs) sold equities worth a net Rs 12,944 crore on Thursday, their biggest single-day outflow since May 29, 2026. Domestic institutional investors (DIIs) partly offset the selling by buying shares worth a net Rs 10,703 crore.  

Tata Consultancy Services (TCS), India’s largest software services exporter, reported its slowest September-quarter revenue growth in three years, raising concerns over client spending and demand across the sector.  

Sentiment deteriorated further after the US suspended major IT outsourcing companies from the Permanent Labor Certification Program, an important route for obtaining employment-based green cards.  

JSW Steel’s crude steel production rose 5% year-on-year to 7.27 million tonnes in the September quarter.  

Dr Reddy’s Laboratories: The US Food and Drug Administration issued a Form 483 with two observations following an inspection of the drugmaker’s facility in Pydibhimavaram, Andhra Pradesh.  

Lupin, a pharmaceutical company, received US FDA approval for a drug used to treat low blood clotting.  

NCC, an infrastructure company, secured a Rs 1,286 crore contract to construct radial roads in Telangana. 

Asian Markets Mixed 

Asian markets traded mixed on Friday as investors assessed rising energy costs, higher borrowing expenses and concerns over the sustainability of AI-related investments. The regional trend followed losses on Wall Street, where technology and semiconductor stocks came under pressure. 

Japan’s Nikkei 225 declined 0.8%, while MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.2%. South Korea’s Kospi remained closed for a holiday. 

Investors remained cautious amid uncertainty over developments in the Middle East and the potential implications for global oil supplies. The inflation outlook and interest rate trajectory also remained in focus, as higher energy prices threaten to complicate monetary policy decisions by major central banks. 

Wall Street Ends Mixed, Nasdaq Leads Losses 

US equities ended mixed on Thursday, with the Nasdaq Composite and S&P 500 declining while the Dow Jones Industrial Average edged higher. The S&P 500 fell 0.5%, while the Nasdaq dropped 1.2%, reflecting weakness in technology and semiconductor stocks. 

Chipmakers came under pressure amid concerns over the financing requirements and revenue projections associated with the AI infrastructure boom. Broadcom and Oracle declined 4.4% and 5.5%, respectively, adding to the pressure on technology shares. 

The sell-off reflected growing investor scrutiny of valuations, borrowing costs and the ability of technology companies to generate adequate returns from their AI investments. Higher US Treasury yields also weighed on sentiment by making equities less attractive relative to bonds and increasing financing costs for businesses. 

Crude Oil Rally Raises Inflation Concerns 

Crude oil prices surged, with Brent futures hovering around $103 per barrel in Asian trading after rising more than 4% in the previous session. Escalating tensions in the Middle East and uncertainty over shipping through the Strait of Hormuz, a key route for global oil supplies, fuelled concerns over potential disruptions. 

US President Donald Trump said Washington would not attack Iran before the November midterm elections, although uncertainty over the broader geopolitical outlook continued to weigh on sentiment. 

For India, which depends heavily on imported crude oil, elevated prices pose a risk to the import bill, the rupee, inflation and corporate profitability. Aviation, paints and other fuel-intensive sectors could face margin pressure if crude prices remain elevated, while upstream oil producers may attract investor interest. 

Source

•  Exchanges