Sensex and Nifty opened higher on Friday, staging a technical rebound after a sharp selloff in the previous session pushed them into oversold territory and to multi-year lows.
However, there was a likelihood of gains remaining limited by a surge in oil prices and fresh US regulatory pressure on a green-card programme widely used by Indian IT outsourcing firms.
GIFT Nifty futures stood at 22,379.5 as of 7:41 am, signalling a positive start for the Nifty 50, which closed at 22,231.80 on Thursday, according to figures in a Reuters report.
The Sensex ended the previous session at a 32-month low, while the Nifty fell to its lowest level in 18 months.
Why did stock market fall
The selloff reflected growing concerns over elevated crude oil prices, rising global bond yields and a weaker rupee. These factors have heightened inflation concerns following the Reserve Bank of India's hawkish rate increase earlier this week.
Foreign portfolio investors sold a net ₹1,29,440 crore ($1.3 billion) worth of Indian equities on Thursday, marking their biggest single-day outflow since May 29, 2026. Domestic institutional investors helped cushion the selling pressure, purchasing a net ₹1,07,030 crore worth of shares, according to a Reuters report.
The decline has also pushed the benchmark indexes towards oversold territory, signalling weak momentum while raising the possibility of a near-term technical rebound, analysts said.
{{/usCountry}}The decline has also pushed the benchmark indexes towards oversold territory, signalling weak momentum while raising the possibility of a near-term technical rebound, analysts said.
{{/usCountry}}Brent crude hovered near $104 a barrel after surging 4% on Thursday, driven by escalating tensions in the Middle East and fears of supply disruptions linked to a hurricane approaching the US Gulf Coast.[O/R]
Any recovery, however, could be constrained by weakness in heavyweight IT stocks.
Tata Consultancy Services, the country's largest software company, reported its weakest September-quarter revenue growth in three years, raising concerns over client spending and demand conditions in the sector.
Pressure intensified after the US suspended major IT outsourcing firms on Thursday from the Permanent Labor Certification Program, a key pathway to obtaining green cards.
"Indian IT companies are already operating under pressure, and this additional regulatory development adds another layer of uncertainty," said Sumit Singhania, head of research at Bajaj Broking.