GIFT Nifty signals positive start for Indian equities despite higher oil prices

Indian equities are bracing for a complex trading session as conflicting regional and international market indicators emerge on Friday, 23 October 2026. Trading activity heading into the session presents a distinct divergence between domestic pre-open optimism and a challenging backdrop of elevated global commodity prices alongside weaker overseas sessions.

The pre-open indicators for Indian equities offered a resilient stance even as broader Asian markets opened sharply lower on Friday, 23 October 2026. South Korea’s Kospi fell 2.42%, the Kosdaq declined 2.6%, Japan’s Nikkei 225 dropped 0.5%, and the broader Topix lost 0.86%. These regional losses followed a severe sell-off on Wall Street on Thursday, 22 October 2026, where the S&P 500 tumbled 1.2% to 7,663.43 points and the Nasdaq Composite sank 2.6%. Meanwhile, the Dow Jones Industrial Average finished virtually flat, gaining a modest 11.89 points, or 0.02%, to close at 52,867.98 points.

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Energy markets remain a primary focal point for global investors. Crude oil prices stayed significantly higher than their pre-West Asia war levels. Brent crude hovered near $113 per barrel, with Bloomberg figures tracking Brent up 3.9% to US$113.12 a barrel amid reports regarding potential actions concerning Iran. West Texas Intermediate crude oil futures traded around $99.17 per barrel according to early trading data, while Bloomberg figures cited in Australian commentary tracked WTI up 2.2% to US$99.31 a barrel. These elevated energy costs have stoked inflation anxieties across global financial sectors, directly influencing commodities and equities alike.

Precious metals faced downward pressure as inflation concerns tied to the oil rally encouraged traders to liquidate holdings. COMEX gold traded lower at around $4,043.20 per ounce in early trade on Friday, 23 October 2026, while CNBC figures cited in Australian commentary recorded gold futures down 2.65% to US$4,040.1 an ounce. Silver also retreated, with COMEX silver dropping 0.6% to $54.67 per ounce. In domestic bullion markets, the rate for 24-carat gold stood at Rs 1,43,370 per 10 grams, while 18-carat gold was priced at Rs 1,07,527.5 per 10 grams. In Dubai, the 24-carat gold rate was recorded at Rs 1,36,618.97.

Domestic institutional flows heading into the session showed net buying activity. According to NSDL data from Thursday, 22 October 2026, foreign institutional investors purchased equities worth Rs 1,022.32 crores, while domestic institutional investors acquired shares valued at Rs 1,614.32 crores. Sector performance during Thursday's domestic session revealed varied results; the education sector led gains by rising 4.5%, followed by hotels at 2.3% higher. Conversely, the sugar sector suffered the steepest losses, dropping 3.8%, and the cables sector declined 3.2%. Corporate group performance on the domestic exchanges saw the Poddar Group gain 3.4% and the Patodia Group close 1.8% higher, while the Essel Group fell 5% and the Nagarjuna Group dropped 4.6%.

Across international jurisdictions, market participants navigated overlapping headwinds. Australian shares tracked the weak lead from Wall Street, with the S&P/ASX 200 Index dropping 0.45% to 8,793.2 points on Thursday, 22 October 2026, and SPI futures pointing to a further 27-point or 0.3% decline for Friday. Local energy firms such as Santos Ltd and Woodside Energy Group Ltd drew attention following the oil price surge, while gold miners including Evolution Mining Ltd and Newmont Corporation faced headwinds from the precious metals sell-off.

Brokerage activity also factored into regional sentiment, with Morgans upgrading data centre operator NextDC Ltd shares to a buy rating with a $7.50 price target. According to Morgans, In our view NXT is incredibly cheap and its ~30% discount to NTA is unwarranted if these issues are just short term in nature. The brokerage added, However, management needs to de-risk these key concerns for equity investors. This could take some time.

Market participants will look closely at several upcoming events for market direction.

What to Watch Next

• The release of domestic second-quarter corporate earnings, which are expected to dictate sentiment throughout the trading day.
• Further geopolitical developments regarding West Asia and potential international policy actions impacting crude oil supply and pricing.
• Trading updates and annual general meeting announcements from corporate entities across international markets, including meetings held by Reliance Worldwide Corporation, McMillan Shakespeare Ltd, and Aussie Broadband Ltd.