How Does Dalal Street React Overnight? Key Global Factors Affecting Stock Market Today You Should Learn About

Stock Market Today, 7 October, 2026: The Indian stock market is in a turmoil these days. But did you know it is not just the Indian indices that affect the stock market every day? There are several global factors that affect the Indian stock market.

These are stock markets from all over the globe. Every country has its own stock market exchange centre and the biggest player is, of course, Wall Street, the United States stock market.

Not just global factors, there are also domestic factors that internally affect the Indian stock market every day. India equities are set to begin today on a timid note. According to analysts, the GIFT Nifty graph points towards a mildly negative opening.

Investors are watching the RBI Monetary Policy Committee’s decision, which could influence market sentiment and borrowing costs.

On Tuesday, the Sensex and Nifty extended their gains, supported by lower crude oil prices and strong buying in banking and heavyweight stocks.

Globally affecting factors are elevated US Treasury yields, a weaker rupee and mixed Asian markets may limit optimism.

Let’s decode more to have a reference of how Dalal Street changes sentiments overnight.

Key Domestic Factor Affecting The Stock Market Today

RBI MPC, Repo Rate Meeting Today

The Reserve Bank of India pulls one move every quarter, that is the MPC meeting. The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) influences the stock market.

The curious question that arises is, how? Through its interest rate decisions, primarily the benchmark repo rate. The RBI uses its power of changing the interest rate to combat inflation; corporate borrowing costs increase. This can squeeze profit margins and pressure stock prices.

Rate-sensitive sectors like real estate, automobiles, and leveraged NBFCs often face immediate negative sentiment. A rate cut or a decision to hold rates steady can boost liquidity, improve investor sentiment, and lower capital costs.

• RBI MPC Meeting: The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) is scheduled to announce its bi-monthly monetary policy decision today, October 7, 2026, at 10:00 AM.
• Press Conference: The announcement will be followed by a press conference at noon.

Also Read: RBI MPC Meeting October 2026: What Happens If Repo Rate Is Hiked, Unchanged Or Cut?

Gift Nifty 

You must have always heard GIFT Nifty making a buzz even before the stock market opens. So, GIFT Nifty is a US dollar-denominated futures contract. It is based on the Indian Nifty 50 index.

Traded on NSE IX in GIFT City, it tracks overnight global market cues and investor sentiment, and according to its nature, it gives hints for the future, for the next day to the traders. With the help of GIFT Nifty, market analysts predict the sentiments of the market for the next day.

Since it operates for nearly 21 hours, traders closely watch its early morning movement as a pre-market indicator.

• GIFT Nifty Signal: Today, October 7, 2026, GIFT Nifty signals a negative opening for Indian markets.
• GIFT Nifty Level: The futures were quoted around 22,733, down nearly 40 to 63 points from Tuesday’s Nifty 50 close of 22,776.10.
• Market Sentiment: The movement is setting a cautious tone for Dalal Street.

How Global Markets Affect The Indian Stock Market Today?

US Stock Market: Wall Street

The US stock market holds an anchor for all the other stock markets. Any minor change on Wall Street also affects the Indian stock market.

Recently, a record-setting rally on Wall Street has given some support for the Indian stock market today. Gains in the tech-heavy Nasdaq can boost investor sentiment towards domestic Indian IT stocks, such as TCS and Infosys, which closely track US tech spending.

No matter the front, this first rally after August will have a domestic conflict later. The optimism from Wall Street is being tempered by caution around today’s RBI MPC meeting.

While global risk appetite remains strong, Indian indices may stay volatile until the interest rate decision.

• Dow Jones Industrial Average: Rose 253.14 points, or 0.49%, to 51,521.04.
• S&P 500: Gained 0.58%, extending its winning streak to four consecutive sessions and closing above 7,800 for the first time.
• Nasdaq: The Nasdaq Composite and Nasdaq 100 extended their gains, touching new peaks after both ended at record highs on Monday.