# Indian Shares Set for Flat Start as Investors Focus on Inflation and Q2 Results

- URL: https://stocks.freetheai.org/news/indian-shares-set-for-flat-start-as-investors-focus-on-inflation-and-q2-results-410ceb
- Published: 2026-10-12T02:04:06Z
- Category: markets; sentiment: neutral; impact: medium
- Symbols: [NSE:NIFTY](https://stocks.freetheai.org/symbols/NSE-NIFTY), [BSE:SENSEX](https://stocks.freetheai.org/symbols/BSE-SENSEX)
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Indian stock market benchmarks are expected to open on a flat to slightly negative note on Monday following a strong session on Friday. Gift Nifty indicated a quiet start near 22,646. While domestic shares staged a recovery late last week driven by strong institutional buying, persistent foreign capital outflows continue to restrict broader market momentum. Foreign institutional investors sold Rs 30,295 crore over the past week, offset by domestic institutional purchases of Rs 30,310 crore.

Global macroeconomic pressures are keeping market sentiment cautious. Elevated United States Treasury yields, persistent inflation concerns, and ongoing geopolitical tensions in West Asia have contributed to a market correction since early August. In addition, Brent crude oil prices lingering above $101 per barrel pose risks to national import costs, corporate profit margins, and the currency. Analysts note that solid domestic corporate earnings growth and healthy financial sector balance sheets offer underlying valuation support despite these external headwinds.

Investors are turning their attention to major domestic economic indicators and corporate announcements. Key focus areas include September consumer and wholesale price inflation reports following recent central bank monetary policy adjustments. Furthermore, the second-quarter earnings season is expanding with reports scheduled from companies such as HCL Technologies, Wipro, Tech Mahindra, Hero MotoCorp, and Nestle India. Management commentary on demand trends and operating margins will be critical in guiding market direction.

## Key points

- Indian equity benchmarks are indicated to open flat following Friday gains, with Gift Nifty trading at 22,646.
- Foreign institutional investors net sold Rs 30,295 crore over eight weeks, balanced by domestic institutional purchases of Rs 30,310 crore.
- Brent crude oil prices above $101 per barrel and elevated bond yields continue to weigh on market sentiment.
- September CPI and WPI inflation data will be closely monitored for indications of economic price pressures.
- Second-quarter earnings reports are expected from major technology firms including HCL Technologies and Wipro.

## Questions and answers

### Why are Indian stock markets expected to open flat?

Gift Nifty signals a quiet opening as market participants shift attention to upcoming inflation reports and second-quarter corporate earnings, while elevated crude oil prices and foreign capital outflows keep sentiment cautious.

### How did foreign and domestic institutional flows impact recent market movements?

Foreign institutional investors sold Rs 30,295 crore over eight consecutive weeks, but domestic institutional investors absorbed the selling pressure by purchasing Rs 30,310 crore, helping support stock prices.

### Which major corporate earnings are scheduled for release next?

Second-quarter earnings announcements are expected from major technology companies including HCL Technologies, Tech Mahindra, and Wipro, along with Hero MotoCorp and Nestle India.