Indian Equity Markets Open Flat as Financial Shares Drag; Nifty Around 22,600

October 8, 2026

Mumbai: Indian equity benchmarks opened largely flat on Thursday, with the Nifty hovering around the 22,600 mark as gains in IT and pharma stocks were offset by weakness in financial, FMCG and auto shares.

The Nifty opened at 22,599.05, down 4 points or 0.02 per cent, while the Sensex started at 72,668, up 29.30 points or 0.04 per cent.

The cautious opening came a day after the Reserve Bank of India raised the repo rate by 25 basis points to 5.5 per cent and shifted its monetary policy stance to calibrated tightening. The move has added to concerns about borrowing costs and equity valuations.

IT, Pharma Stocks Gain

Among sectoral indices, Nifty IT, Nifty MidSmall Healthcare and Nifty Pharma were among the top gainers, advancing by up to 0.59 per cent.

Metal, consumer durables and chemical stocks also traded marginally higher during the opening session.

Market experts said the RBI’s calibrated tightening stance could put pressure on equity valuations as higher interest rates make fixed-income investments relatively more attractive.

They also expect investor preference to shift marginally towards sectors that are relatively less sensitive to interest rates, such as pharmaceuticals.

Financial, FMCG Stocks Under Pressure

On the other hand, Nifty Financial Services ex-Bank and Nifty FMCG declined by up to 0.38 per cent, weighing on the broader market.

Experts noted that growth stocks continued to attract investor interest despite high valuations, while value stocks remained subdued.

“Sustained selling by foreign investors in large-cap stocks, coupled with the US 10-year Treasury yield staying above 5.3 per cent, could keep large-cap stocks under pressure,” they said.

According to market experts, repeated attacks around the 22,574 level could lead to an extended period of consolidation before the market establishes a clear direction. They said the 23,100-22,200 range remained relevant, with 22,439 identified as an important downside marker.

FII Selling, High Yields Keep Sentiment Cautious

Foreign institutional investors remained net sellers on Wednesday, offloading equities worth more than Rs 6,121 crore. Domestic institutional investors provided some support by purchasing equities worth around Rs 4,596 crore.

Market sentiment also remained cautious amid elevated US Treasury yields and rising oil prices. Asian markets traded cautiously following a weaker session on Wall Street.

Experts said a sustained reversal in the market trend would require foreign investors to turn buyers. At the same time, they said value stocks could offer opportunities over the longer term.

The Indian market had closed sharply lower on Wednesday, with the Nifty falling 0.76 per cent to 22,603.05 and the Sensex declining 429.11 points, or 0.59 per cent, to 72,638.70 after the RBI’s rate hike.