Indian equities opened lower on October 1, 2026, as persistent foreign investor selling and high US bond yields continue to impact market sentiment. While the IT sector showed some resilience, major auto stocks like Bajaj Auto and Mahindra & Mahindra declined due to concerns over slowing domestic demand and high base effects in monthly sales data.
Indian stock markets began October on a weak note, as both the Sensex and Nifty 50 struggled to maintain momentum. The indices opened lower, continuing a broader downward trend that saw the Nifty 50 contract by 6.1 percent in September. This cautious start reflects ongoing anxiety among investors as they monitor high US bond yields and the consistent exit of foreign institutional investors.
The primary pressure on the market currently stems from global financial conditions. The US 10-year Treasury yield is hovering around 5.3 percent. When yields on safe US government bonds rise, they become more attractive to global investors. This often leads to money moving out of emerging markets like India, resulting in significant selling pressure. Foreign investors have been aggressive sellers recently, offloading more than ₹10,000 crore in single-day sessions, which has drained liquidity and increased market volatility.
Sectoral performance today shows a clear split, with the auto and IT sectors moving in different directions. The automotive sector is facing a difficult period, with investors reacting to September sales data that highlights slowing demand. Mahindra & Mahindra shares hit a 52-week low today. While the company reported 15 percent growth in total auto sales, the market has focused on the decline in tractor sales, which are facing a high base effect compared to the previous year. Similarly, Bajaj Auto witnessed a sharp decline after reporting a 12 percent drop in domestic two-wheeler sales, despite a 5 percent increase in total sales volume. These numbers suggest that companies are finding it challenging to maintain the rapid growth rates seen in earlier quarters.
In contrast, the information technology sector has offered some stability. Tech giants like TCS and Infosys traded with gains as market participants prepare for earnings reports from global majors like Accenture. Investors are looking for clues on how much large global companies plan to spend on technology services, which is a key factor for Indian IT growth.
Beyond these sector trends, macroeconomic factors continue to influence sentiment. While crude oil prices have softened slightly, they remain a risk for India’s import costs, inflation, and company profit margins. Investors are currently watching key technical support levels for the Nifty 50, as a failure to hold these positions could lead to further corrections. The immediate monitorable for the market will be the direction of foreign fund flows and any signs of stabilization in global bond yields, which are necessary to reverse the current selling trend.