Sensex, Nifty Outlook for Thursday: Kospi, Taiwan Cues | 8 Oct 2026

Indian equity benchmarks Sensex and Nifty are likely to take cues from Asian markets, especially South Korea's Kospi and Taiwan's weighted index, when trading resumes on Thursday, 8 October 2026. Analysts say global sentiment remains fragile amid mixed signals from the US and lingering concerns over China's property sector. Investors will also watch crude oil prices, the rupee's movement, and foreign institutional investor (FII) activity for direction. The market will open after the Wednesday holiday, and early trends in Kospi and Taiwan will set the tone for the day.

On the previous trading session, the BSE Sensex had closed at 71,500.23, down 0.45%, while the Nifty 50 ended at 21,550.60, slipping 0.40%. The broader market outperformed, with the Nifty Midcap 100 gaining 0.2%. Sectorally, IT and pharma stocks saw profit-booking, while PSU banks and metals held up. FIIs were net sellers in the cash segment, offloading shares worth ₹1,200 crore, while domestic institutional investors (DIIs) bought equities worth ₹950 crore, according to provisional exchange data. The India VIX, a measure of market fear, rose 3.5% to 14.2, indicating cautious sentiment.

Global cues are mixed. South Korea's Kospi fell 0.8% on Wednesday as tech heavyweights Samsung Electronics and SK Hynix declined on weak chip demand outlook. Taiwan's weighted index dropped 0.6%, dragged by TSMC and other semiconductor stocks. Japan's Nikkei 225 was down 0.3%. In the US, the Dow Jones Industrial Average ended marginally higher by 0.1%, while the Nasdaq Composite lost 0.2% as Treasury yields rose. The US 10-year bond yield climbed to 4.65%, its highest in two weeks, which could pressure emerging market equities. Crude oil prices were steady; Brent crude traded near $82 per barrel. The dollar index strengthened to 106.2, weighing on the rupee, which closed at 83.45 against the US dollar.

Analysts say that if Kospi and Taiwan indices recover from early losses, Nifty could find support near 21,400 and attempt a rebound towards 21,700. However, a sustained fall in Asian markets may drag the index below 21,350, with next support at 21,200.

For Thursday, key levels to watch: Nifty 50 has immediate support at 21,400 and resistance at 21,700. Sensex may find support at 71,000 and face resistance at 71,800. Bank Nifty, which closed at 45,200, has support at 44,800 and resistance at 45,800. A break above or below these levels could trigger directional moves. Traders are advised to keep an eye on the Kospi and Taiwan indices in early Asian trade, as they often set the tone for Indian markets. Additionally, any fresh FII selling could cap upside.

Market participants will also track the progress of the monsoon, which has been above normal this year, and its impact on rural demand. Auto and FMCG stocks could react to monthly sales data expected later this week. Globally, investors await the US Federal Reserve's minutes from its September meeting, due on Wednesday evening, for clues on interest rate trajectory. Any hawkish commentary could strengthen the dollar and hurt risk assets. In Asia, China's Shanghai Composite was flat, while Hong Kong's Hang Seng fell 0.4%. European markets closed mixed on Wednesday.

For Thursday, the outlook remains cautious. Analysts suggest that a gap-down opening is likely if Kospi and Taiwan extend losses. However, value buying at lower levels could provide support. Investors should focus on stock-specific action and avoid aggressive bets ahead of the weekend. The rupee's movement and crude oil prices will also be crucial. Overall, the market is expected to remain volatile with a negative bias unless global cues improve.

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