The Prime Daily: 08 October 2026

Authored By Prime Research | Published at: Oct 8, 2026 09:05 AM IST

Open Free Demat Account

Start of Earnings Season to Drive Markets as Interest Rate, Currency and Crude Worries Persist

Major U.S. stock indexes retreated from their all-time highs as investors locked in gains. The Dow Jones dropped 0.66%, while both the S&P 500 and the Nasdaq Composite shed 0.22% following their record-breaking sessions. This pullback was heavily driven by heightened energy price volatility and lingering inflation anxieties.

Long-term U.S. bond yields soared to levels not seen since 2002, with the 30-year Treasury yield scaling to 5.66% and the 10-year note touching 5.37% in early trading. Heavy pressure in the fixed-income sector initially rattled equities, though yields moderately pared back their daily gains following a solid $39 billion government auction of 10-year notes.

Global energy benchmarks remained elevated, with Brent crude stabilising around the $102 per barrel threshold. Persistent anxiety regarding attacks on supply lines in the Strait of Hormuz continues to bolster prices, creating a structural undercurrent of inflation worries that is complicating the Federal Reserve’s monetary trajectory.

EURO fell about 0.6% to near 1.119. French fiscal stress, Spain’s snap election and Brent above $100 are weighing on the euro.

The RBI MPC hiked the repo rate by 25bps for the first time since Feb’2023 to 5.5%, citing hardening inflation and the re-escalation of the West Asia crisis and the resulting hardening and volatility in global crude prices.

It also changed the stance from ‘neutral’ to ‘calibrated tightening’, indicating that rate cuts are off the table and there would be further hikes or a pause in the coming months.

The rupee depreciated 36 paise to close at a five-month low of 96.78, marking its second-weakest close on record and underperforming most Asian currencies. Sentiment weakened after the RBI adopted a hawkish stance amid renewed inflation concerns. A rebound in crude oil prices and heightened risk aversion added to the pressure, keeping dollar bulls firmly in control.

TCS is going to report Q2 FY27 results today, after market hours, with the board also due to consider a second interim dividend. The market expects revenue growth of about 0.5% QoQ and 2.8% YoY, broadly stable margins versus Q1, and TCV of $10–11 billion. The focus is on whether growth stabilises and how quickly margins can move toward the 25%+ exit target.

Nifty resumed its downward trajectory, declining 173 points to close at 22,603 yesterday amid a highly volatile trading session. Immediate resistance is placed near 22,800, aligned with the 10-day EMA, while key supports are seen at 22,397 and 22,217. A sustained move above 22,800 would be required to signal meaningful short-term recovery.

Indian equities look set for a muted open in the absence of strong global triggers.

Disclaimer

At HDFC SKY*, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please Note: The information shared is intended solely for informational purposes and does not make any investment recommendations.
HDFC SKY from HDFC Securities, one of most trusted trading platforms in India, has been recognized with the *Next-Gen Digi Content Awards 2025-26.

Markets