Mumbai, June 12, 2026, 02:20 IST
- GIFT Nifty pointed to an uncertain start after Nifty dropped below the 23,200 level.
- FII selling hits the market, while a weaker rupee adds more strain.
- Oil price moves and headlines from the Middle East could drive early action.
Indian shares set for a cautious start Friday after falling Thursday. Nifty 50 lost 0.23% to close at 23,161.60, while Sensex slipped 0.2% to 73,832.55, with most sectors losing ground, according to Reuters. Traders are watching GIFT Nifty moves, crude prices, and foreign investor flows.
GIFT Nifty futures slipped 47.50 points to about 23,153 late Thursday, down 0.2%, according to NSE data. The move signals a muted or flat start for the session unless global mood picks up before the cash market opens.
Foreign institutional investors offloaded roughly ₹1,987 crore in the cash market on June 11, according to Trendlyne’s provisional FII-DII data. Domestic funds bought about ₹4,224 crore in shares. That local demand has kept the market supported. But with FIIs still pulling out, large index stocks haven’t moved much.
Rupee drops as demand for dollars climbs. Reuters reported the rupee weakened to 95.76 per dollar on Thursday after oil companies bought dollars, erasing much of the rally from the RBI’s recent move for more inflows. The rupee’s fall is a blow to import-heavy industries and puts crude back on the radar.
Oil keeps its place as India’s biggest external risk due to the country’s dependence on imported crude. Brent crude fell to $90.60 a barrel on Thursday after U.S. President Donald Trump pulled back from planned strikes on Iran. Still, Reuters reported high tension stayed near the Strait of Hormuz. If oil prices spike again, inflation worries could return quickly and weigh on Indian shares.
Wall Street signals were mixed. Consumer inflation in the U.S. rose 4.2% in May from a year earlier, the fastest pace in three years, Reuters said here. Higher inflation is keeping investors cautious about Federal Reserve rate cuts. That kind of hesitation usually weighs on flows to emerging markets like India.
IT stocks dropped for another day Thursday, with the sector weighed down by new worries that AI disruption could hurt business. Private banks moved the other way. According to Reuters, RBI’s fresh steps to improve dollar flows and boost liquidity sent those names up. Traders are watching to see if the recent selling in mid- and small-caps lasts. Both those indices fell harder than the key benchmarks.
Flat to weak open seen for Friday, unless global risk appetite picks up before the bell. Watch if Nifty can hold the 23,150–23,160 region. Banks are in focus, as the sector tries to offset possible pressure from IT, oil-exposed stocks, and foreign selling.
