Equity Markets Open Flat Amid Mixed Sector Performance

On October 8, domestic equity markets opened flat, with the Nifty index around 22,600. Gains in IT and pharma sectors were offset by declines in financial and auto stocks. Analysts suggest that the RBI's tightening stance may pressure equity valuations, while foreign institutional investors continue to sell off equities. The market sentiment remains cautious amid rising US Treasury yields and fluctuating oil prices. Investors are advised to watch for potential shifts towards interest-inelastic sectors like pharmaceuticals as the market navigates through this consolidation phase.

By Narendra Chaudhary Oct 8, 2026, 12:30 IST

Market Overview

Representational Image

New Delhi, Oct 8: The domestic stock market opened mostly unchanged on Thursday, with the Nifty index hovering around the 22,600 level. Gains in the IT and pharmaceutical sectors were countered by declines in financial, FMCG, and automotive stocks.

The Nifty index commenced at 22,599.05, reflecting a slight decrease of 4 points or 0.02 percent.

In a similar vein, the Sensex began trading at 72,668, marking an increase of 29.30 points or 0.04 percent.

Sector performance showed that Nifty IT, Nifty MidSmall Healthcare, and Nifty Pharma emerged as the leading gainers, with increases of up to 0.59 percent.

Conversely, sectors such as Nifty Financial Services excluding banks and Nifty FMCG experienced declines of up to 0.38 percent.

Market analysts indicated that the Reserve Bank of India's cautious tightening approach might exert pressure on equity valuations, as higher interest rates could make fixed-income investments more appealing.

They anticipate a slight shift in investor focus towards sectors that are less sensitive to interest rates, particularly pharmaceuticals.

Despite high valuations, growth stocks continue to draw investor interest, while value stocks have not performed as well.

Experts noted that ongoing selling by foreign investors in large-cap stocks, along with the US 10-year Treasury yield remaining above 5.3 percent, could keep large-cap stocks under pressure.

According to analysts, the recent fluctuations at 22,574 suggest a prolonged period of consolidation before a clear market direction is established. Although the outlook has weakened, the range between 23,100 and 22,000 is still relevant, with a downside marker at 22,439.

For a significant reversal in market trends, foreign investors would need to become net buyers, while value stocks may present long-term opportunities.

Additionally, foreign institutional investors were net sellers on Wednesday, offloading equities valued at over Rs 6,121 crore, while domestic institutional investors provided some support by purchasing around Rs 4,596 crore in equities.

Market sentiment remained cautious due to concerns over rising US Treasury yields and oil prices, with Asian markets also trading cautiously following a subdued session on Wall Street.