Indian equities looked set for a muted start on Monday, 26 October 2026, with GIFT Nifty trading around 22,605 to 22,611 in pre-market deals, near flat against the Nifty’s Friday close of 22,600. The flat signal suggested that investors, after a bruising week, were in no hurry to take fresh bets ahead of key global cues.
Friday’s session had closed on a weak note, extending the market’s losing run to a fourth straight session. The Sensex ended at 73,123.83, down 125.56 points or 0.17 per cent, while the Nifty 50 settled at 22,600.00, down 87.65 points or 0.39 per cent. For the week, the Sensex lost about 2.2 per cent and the Nifty about 2.4 per cent, a correction that has dented sentiment across the board.
The breadth of Friday’s decline was striking. The Nifty Smallcap 100 shed nearly 3 per cent, and one report noted that 460 of the 500 most-tracked stocks ended in the red. Such widespread weakness points to selling that went beyond a few heavyweights, with smaller companies, which had run up sharply in recent months, bearing the brunt of profit-taking and risk aversion.
Global cues offered little comfort over the weekend. In the United States on Friday, the Dow Jones fell 1.23 per cent to 52,215.16, the S&P 500 slipped 0.52 per cent to 7,623.68, and the Nasdaq eased 0.21 per cent to 25,955.34. Back home, the India VIX, the market’s fear gauge, stood at 16.86, up 6.98 per cent, reflecting the heightened nervousness among traders.
Crude oil remained a central worry for markets. Brent crude traded around 115 to 116 dollars a barrel, easing from a near six-month high of about 117 dollars, after attacks on Saudi Arabia kept supply concerns firmly in focus. For India, a major oil importer, elevated crude prices raise the spectre of higher import bills, pressure on the rupee and a harder fight against inflation.
The week ahead is dominated by two themes: the United States Federal Reserve’s policy decision and the ongoing second-quarter earnings season. The Fed’s stance on interest rates will shape global liquidity and risk appetite, while domestic earnings will test whether corporate profit growth can justify current valuations after the recent correction.
On the flows front, provisional data cited in market reports showed foreign institutional investors buying shares worth Rs 887.65 crore on net on 23 October, while domestic institutional investors bought Rs 3,235.36 crore on net. The domestic buying, as in recent months, provided a cushion against foreign selling pressure, though it was not enough to prevent Friday’s decline.
Demand absorbed by the Jio Platforms initial public offering also weighed on liquidity last week, according to market watchers, as large subscriptions locked up funds that might otherwise have flowed into secondary markets. The effect is typically temporary, but it added to the cautious mood in an already jittery week.
Among stocks to watch on Monday, market reports flagged Raymond, RailTel, KEC International, Honasa, BL Kashyap, Lupin, Orchid Pharma and Gland Pharma, each carrying stock-specific news or earnings triggers that could move prices regardless of the broader market direction. Traders will also watch whether the Nifty can hold the 22,600 level, which now acts as an important near-term support.
For now, the market’s message is one of caution rather than panic. A flat GIFT Nifty, elevated volatility and a heavy global calendar argue for a wait-and-watch opening, with the Fed decision and earnings likely to decide whether the correction finds a floor or extends further into the week.
