The Indian benchmark indices started the week on a negative note amid renewed US-China trade tensions. The BSE Sensex opened below 82,300, taking a hit of over 200 points, the NSE Nifty50 began trading just above 25,200, tumbling a little over 50 points.
The pre-open session showed both indices tanking majorly, with the Sensex crashing more than 400 points, while the Nifty slipped under 25,200, around 9:02 AM. However, the GIFT Nifty indicated a different story, as it climbed over 100 points and surpassed 25,300 near 8:50 AM.
Indian equities are expected to open the week on a cautious note as investors track a host of global and domestic triggers, from the renewed tariff dispute between the United States and China to fresh macroeconomic data and corporate earnings from market heavyweights such as HCL Technologies, Infosys, and Reliance Industries, analysts said.
The week ahead will likely test investor sentiment, with market direction shaped by a combination of domestic economic indicators, global risk cues, and corporate performance.
US-China Trade Tensions Escalate
The sharp escalation in US-China tariff tensions, which rattled Wall Street on Friday, is expected to weigh on global risk appetite. The sell-off saw the Nasdaq Composite plunge 3.56 per cent, the S&P 500 tumble 2.71 per cent, and the Dow Jones Industrial Average drop 1.90 per cent.
Market watchers said the fallout from the US-China dispute could spill over into Asian and emerging markets, including India, dampening near-term investor confidence.
Inflation And Q2 Earnings
Back home, attention will turn to a busy macroeconomic calendar. The government is set to release retail inflation (CPI) figures for September today, followed by wholesale inflation (WPI) on Tuesday, data that could shape the Reserve Bank of India’s policy outlook.
“This week will be event-heavy as focus shifts to key domestic macroeconomic data and a busy Q2 FY26 earnings calendar,” said Ajit Mishra, Senior Vice President, Research, at Religare Broking Ltd.
Corporate earnings will remain a key driver of sentiment, with markets closely watching results from IT majors Infosys, HCL Technologies, Wipro, Tech Mahindra, LTIMindtree, and banking heavyweight Axis Bank, alongside conglomerate Reliance Industries, Mishra added.
US Fed In Focus
Investors will also be tracking developments in the United States, where Federal Reserve Chair Jerome Powell is scheduled to speak on October 14. His remarks will be scrutinised for insights into the Fed’s interest rate outlook and the inflation trajectory, analysts said.
“The week is likely to be crucial as global sentiment turned cautious following a sharp decline in US markets amid renewed tensions between the US and China,” said Santosh Meena, Head of Research at Swastika Investmart Ltd.
Last week, Indian benchmarks posted strong gains despite global uncertainty. The Sensex surged 1,293.65 points, or 1.59 per cent, while the Nifty advanced 391.1 points, or 1.57 per cent.
Analysts said while the recent rally has strengthened technical momentum, volatility may rise as traders weigh global headwinds against domestic earnings optimism. Foreign institutional investor activity, too, will remain a crucial factor in setting the tone for the markets this week.
