Morning Market Setup: Key Global Cues Ahead of Monday’s Opening Bell

Domestic equity benchmarks are poised for a solid start on October 12, guided by positive signals from the GIFT Nifty, which rose roughly 44.5 points to trade near 22,645 in early deals.

This follows Friday’s sharp rally on Dalal Street, where the BSE Sensex surged 879 points (1.23%) to finish at 72,472, while the NSE Nifty 50 jumped 289 points (1.30%) to close at 22,520. Sectoral performance was led by Information Technology (up 3.02%), FMCG (up 2.2%), and PSU Banks (up 1.63%). Broader markets also participated, with the Nifty Midcap gaining 1.56% and the Smallcap index adding 0.54%.

Global Market Snapshot

• US Markets: Wall Street closed Friday on a strong note ahead of key upcoming corporate earnings and consumer inflation data. The Dow Jones advanced 423.31 points (0.83%) to 51,654.95, the S&P 500 rose 46.15 points (0.59%) to 7,811.51, and the Nasdaq Composite added 172.83 points (0.64%) to 27,366.17.
• Asian Markets: Equities across Asia opened cautiously on Monday amid concerns over elevated tech valuations ahead of quarterly earnings, alongside regional tensions impacting Gulf transit routes.
• Currencies & Dollar Index: The US Dollar Index remained subdued near 102. Most Asian currencies strengthened against the greenback, led by the South Korean Won (+0.355%), Philippine Peso (+0.204%), and Chinese Yuan (+0.158%), with the Japanese Yen also firming 0.12% to 158.15 per dollar amid ongoing intervention vigilance.
• US Treasury Yields: Yields held steady in early trade, with the 10-year US Treasury yield at 5.23% and the 2-year yield sitting at 4.78%.
• Commodities:
  • Crude Oil: Prices dropped on reports of reduced risks to Russian-Ukrainian energy infrastructure. Brent crude fell $1.57 to $102.58 per barrel, while WTI slipped 2.01% to $89.96 per barrel.
  • Gold: Bullion prices held firm near $4,200 per ounce, supported by broader geopolitical hedging and inflation monitoring.
• Institutional Activity: Foreign Institutional Investors (FIIs) remained net sellers for the 11th straight session on October 9, offloading shares worth ₹3,568 crore. Domestic Institutional Investors (DIIs) cushioned the outflow, net buying equities valued at ₹4,743 crore.