Indian equity benchmarks made flat-to-positive start on Monday but soon turned volatile and were struggling for direction as escalating tensions in the Strait of Hormoz offset support from recent gains in the markets and positive corporate earnings. Traders were also concerned as the RBI said India's forex kitty dropped by $8.57 billion to $726.02 billion during the week ended October 9.
Sensex and Nifty were trading flat in early deals as losses in private banks and FMCG stocks were outweighing gains in public sector banks. Some cautiousness came amid expiry of Nifty weekly derivatives contracts later in the day. Traders also avoided risky bids ahead of holiday tomorrow on account of Dussehra. However, losses remained capped as Foreign Institutional Investors (FIIs) turned buyers with net equity purchases of Rs 1,165.92 crore on October 16, 2026.
On the global front, Asian markets were trading mixed with technology stocks under pressure amid concerns over the enormous capital expenditure required to build artificial intelligence infrastructure. Investors are also assessing whether expected earnings growth from major technology companies will justify their substantial AI investments.
The BSE Sensex is currently trading at 74744.03, up by 14.76 points or 0.02% after trading in a range of 74169.23 and 74849.75. There were 18 stocks advancing against 12 stocks declining on the index.
The top gaining sectoral indices on the BSE were PSU up by 0.77%, Oil & Gas up by 0.57%, Energy up by 0.47%, Telecom up by 0.21% and Healthcare up by 0.17%, while FMCG down by 0.66%, Capital Goods down by 0.43%, Industrials down by 0.31%, Realty down by 0.21% and Power down by 0.21% were the top losing indices on BSE.
The top gainers on the Sensex were State Bank of India up by 1.82%, Ultratech Cement up by 1.49%, Adani Ports & SEZ up by 1.28%, HCL Technologies up by 1.17% and Maruti Suzuki India up by 0.89%. On the flip side, Axis Bank down by 3.76%, HDFC Bank down by 1.39%, Hindustan Unilever down by 0.89%, Bajaj Finserv down by 0.84% and Infosys down by 0.74% were the top losers.
Meanwhile, expressing optimism about India’s growth prospects, NITI Aayog Vice Chairman Ashok Kumar Lahiri has said that India needs rapid economic reforms and structural changes to become a developed nation by 2047. He said a high-income economy is defined as one in which the gross national income (GNI) per capita exceeds a specified threshold. For instance, he noted that the threshold for 2027 is $14,375 for a country to qualify as a high-income economy.
Lahiri said “You factor in some inflation, and one estimate puts the target for per capita income at around $18,000 to $20,000 for India to become a high-income country by 2047.” He pointed out that India’s per capita income currently stands at $2,813. To reach $18,000 by 2047, India’s per capita income would need to increase around six-and-a-half times, growing at an annual nominal rate of around 9.25 per cent over the next 21 years.
He emphasised that education, healthcare and infrastructure are the three critical areas for achieving rapid economic growth. He noted “You will not find any country where the people are educated and poor. Neither will you find any country where the people are uneducated and rich.” Similarly, he said, “You will find it difficult to find countries where the people are healthy and poor, or where the people are rich and sickly.” He stressed that human capital is essential for economic growth and overall well-being.
The CNX Nifty is currently trading at 23144.95, down by 1.20 points or 0.01% after trading in a range of 22970.50 and 23175.25. There were 28 stocks advancing against 22 stocks declining on the index.
The top gainers on Nifty were State Bank of India up by 2.02%, Ultratech Cement up by 1.88%, ONGC up by 1.57%, Eicher Motors up by 1.41% and HCL Technologies up by 1.13%. On the flip side, Axis Bank down by 4.22%, HDFC Bank down by 1.25%, Infosys down by 0.92%, Tata Consumer Products down by 0.86% and Nestle India down by 0.75% were the top losers.
Asian markets were trading mixed; KOSPI increased 31.54 points or 0.56% to 5,699.59, Straits Times added 19.48 points or 0.36% to 5,435.01 and Shanghai Composite strengthened 5.92 points or 0.16% to 3,722.20. On the other hand, Nikkei 225 slipped 541.29 points or 0.83% to 64,783.00, Taiwan Weighted lost 485.09 points or 1.03% to 46,626.17 and Jakarta Composite plunged 264.82 points or 5.11% to 4,920.29.
