Pre-Market Report & Global Cues | 23 October 2026

Global markets are under pressure as concerns over AI spending and rising crude prices hit investor confidence. US technology and semiconductor stocks fell sharply after Meta's heavy AI spending raised questions about the returns from these investments. Brent crude climbed to a five-month high following attacks on Saudi targets, bringing fresh concerns about oil supplies and inflation. What does this mean for India? Crude above $110 is a concern for India because it raises import costs and adds pressure on inflation. The rupee weakened further in the previous session, while Indian bond yields moved higher. The US 10-year yield fell below 5% as investors moved towards Treasury bonds, but Indian borrowing costs have not seen similar relief. Asian markets are mostly trading lower, yet GIFT Nifty indicates a gap-up of around 100 points. After recent declines, this could provide some support at the opening. However, the gap-up needs to hold, especially as selling pressure in small- and mid-cap stocks remains a concern. India's preliminary manufacturing and services PMI data is scheduled for 10:30 AM. Previous readings stood at 55.1 and 55.2, respectively, indicating expansion. Today's figures will help assess whether domestic business activity is holding up despite rising energy costs and global uncertainty. Market Outlook The overall bias remains cautious to bearish. A higher opening may bring temporary relief, but the combination of weak global technology stocks and expensive crude makes a sustained recovery harder. Keep an eye on market breadth, the performance of Indian IT stocks and the PMI numbers. If the rise is limited to a few heavyweight stocks, the broader market may continue to struggle. For India, the concern is not just the fall in global technology stocks. Higher oil prices can also affect inflation, the rupee and business costs. For educational purposes only. Not a buy/sell recommendation. Market conditions can change during the session.