IT Stocks Lift Indian Shares Despite Rate Fears

Indian equity benchmarks opened marginally higher on Thursday, October 15, supported by information technology stocks, despite concerns that stronger-than-expected US inflation could prompt the Federal Reserve to raise interest rates again this year. The Nifty 50 rose 0.27% to 22,683.3, while the BSE Sensex gained 0.32% to 73,030.04 as of 9:22 a.m. IST, according to Reuters.

The opening gains came after pre-market indicators had pointed to a weaker start, tracking declines across Asian markets and losses on Wall Street. India's market direction remained sensitive to global monetary policy expectations, which can influence foreign investment flows into emerging markets.

US consumer price inflation rose more than expected in September, strengthening market expectations of another Federal Reserve rate increase. Higher US interest rates can make emerging-market assets less attractive to overseas investors by improving the relative appeal of dollar-denominated investments.

Foreign investors had sold Indian equities for 14 consecutive sessions through Wednesday, taking their net outflows since the beginning of 2026 to a record $32.7 billion, Reuters reported. Continued selling by overseas funds has added pressure to domestic market sentiment.

Information technology shares provided support at the open. The Nifty IT index rose 1.5%, extending its gains over three sessions to approximately 7.8% after HCLTech reported better-than-expected quarterly earnings earlier in the week. Investors were looking to Wipro's results and outlook for indications of technology spending, deal conversions and operating margins.

Oil prices remained elevated, with Brent crude trading around $104.50 a barrel as markets assessed supply risks linked to attacks on shipping through the Strait of Hormuz. Higher crude prices remain a concern for India because they can increase import costs and add to inflationary pressures.

Investors were also monitoring primary-market activity after Jio Platforms announced plans to raise up to $3.2 billion through an initial public offering. The proposed issue could become India's largest IPO to date and may influence the availability of liquidity for trading in listed shares.

Stocks in focus included IDBI Bank following approval of Fairfax Financial Holdings' subsidiary as the buyer of a majority stake, as well as HDB Financial Services and ICICI Lombard after reporting higher quarterly profits. Tata Technologies projected double-digit revenue growth for the financial year, while CEAT reported a decline in quarterly profit amid higher rubber costs.

Market direction will depend on the interaction between corporate earnings, foreign investor flows, crude oil prices and expectations for US monetary policy. Although technology stocks supported the opening session, persistent inflation concerns and elevated oil prices continued to pose risks for Indian equities.