NEW DELHI, October 12, 2026 — Indian stock markets opened higher on Monday as easing crude oil prices and fresh Reserve Bank of India (RBI) measures to stabilize the rupee improved investor sentiment. However, persistent foreign investor outflows, elevated oil prices and global economic uncertainty continued to weigh on the market outlook.
The BSE Sensex rose 158.10 points, or about 0.21%, to 72,630.43 in early trading. The NSE Nifty 50 gained 55.20 points, or about 0.25%, to 22,575.65, according to reported opening levels. The figures indicate a positive start following Friday’s recovery.
On October 9, the Sensex had closed at 72,472.33, up 879.09 points, or 1.23%. The Nifty 50 settled at 22,520.45, gaining 288.65 points, or 1.30%. Friday’s rebound helped the benchmarks break an eight-week losing streak, although analysts cautioned that a sustained recovery would require stronger market momentum and more supportive economic conditions.
Oil Prices Ease, but Remain Elevated
Brent crude futures fell approximately 1.5% to around $103 per barrel in early trading on Monday. Expectations of a Russia-Ukraine agreement to halt attacks on energy infrastructure eased immediate supply concerns. However, crude prices remained above $100 per barrel, leaving Indian equities vulnerable to higher import costs and renewed inflationary pressure.
Lower oil prices can offer relief to India, a major crude importer, by easing pressure on the trade balance, inflation and the rupee. A sustained decline in energy prices could therefore provide a more durable boost to investor confidence.
RBI Measures Put Rupee in Focus
The RBI announced fresh measures over the weekend to reduce pressure on the rupee. The central bank moved to redirect dollar purchases by oil companies away from the spot market and tightened certain foreign-exchange hedging rules.
The measures were intended to reduce immediate demand for dollars and curb currency volatility. A more stable rupee could help moderate imported inflation and improve sentiment toward Indian assets.
Nevertheless, the impact on equities will depend on whether these measures, together with lower oil prices, translate into sustained currency stability and improved foreign investment flows.
Foreign Investor Selling Remains a Concern
Foreign portfolio investors continued their selling streak, offloading Indian equities for 11 consecutive sessions, according to Reuters. On Friday, they sold shares worth a net ₹35.69 billion. Domestic institutional investors provided support, purchasing shares worth a net ₹47.43 billion, based on provisional exchange data.
This contrast between foreign selling and domestic buying remains an important factor for traders assessing the durability of the rebound.
Stocks and Earnings in Focus
Investors are monitoring second-quarter earnings and company-specific developments for fresh direction. HCL Technologies is among the key companies in focus as the earnings season gathers pace.
Avenue Supermarts, the operator of DMart, reported a 7.6% year-over-year increase in net profit for the September quarter to ₹8.04 billion. Poonawalla Fincorp reported a roughly fivefold increase in consolidated net profit to ₹3.75 billion. In contrast, Mahindra & Mahindra reported a 19.2% year-over-year decline in production for the quarter.
These developments could influence trading in the respective stocks as investors assess earnings growth, operating performance and management commentary.
What Investors Should Watch Next
Market participants will closely track crude oil movements, the rupee, foreign institutional investor flows, global bond yields and upcoming corporate earnings. Although Monday’s higher opening offered some relief after a prolonged period of weakness, it does not by itself confirm a sustained market reversal.
Market outlook: The early tone was positive, but volatility could persist while oil prices remain elevated and foreign investors continue to withdraw funds.
This report is for informational purposes only and does not constitute investment advice.
