# \[POLL\]\[2026-10-27\]Where will NIFTY close this month's expiry?

**URL:** https://tradingqna.com/t/poll-2026-10-27-where-will-nifty-close-this-months-expiry/198444
**Category:** Trading
**Created:** [September 29, 2026, 11:23am UTC](https://tradingqna.com/t/poll-2026-10-27-where-will-nifty-close-this-months-expiry/198444 "2026-09-29T11:23:42Z")
**Posts on this page:** 1
**Showing post:** 179

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### Author: ![BB789](https://tradingqna.com/user_avatar/tradingqna.com/bb789/32/91597_2.png) [@BB789](https://tradingqna.com/u/BB789)
#### Post date: [October 4, 2026, 1:49pm UTC](https://tradingqna.com/t/poll-2026-10-27-where-will-nifty-close-this-months-expiry/198444/179 "2026-10-04T13:49:25Z")

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> [@Jason\_Castelino](#):
>
> My post for which you replied was only explaining why index has to go higher year on year. And my answer is interest rates. Interest rates depend on inflation and forex

While I agree inflation inflates nominal returns, I don’t agree the same with interest rates. Interest rate increases are an response to inflation and is done to combat inflation. Climbing interest rates are a clear damper on equity returns:

> [@GSEC 10 Year Yield](https://tradingqna.com/t/gsec-10-year-yield/198551/4):
>
> Then it may impact Indian equities. There are three major hurdles to think about:
> 
> - Opportunity Cost: When 10-year G-Sec yields rise, meaning the risk-free return on sovereign debt increases, fixed-income assets become more attractive. Investors may reallocate capital away from riskier equities, such as the Nifty 50, and into debt.
> - Cost of Capital & Valuations: Higher G-Sec yields push up the overall interest-rate structure in the economy. This increases the cost of capital for companies and raises the discount rate used to value future earnings. As a result, equity P/E multiples tend to compress, putting pressure on Nifty valuations.
> - Foreign Institutional Investor (FII) Flows: When Indian G-Sec yields rise relative to global yields, or when global bond yields spike, FIIs may reduce their exposure to emerging-market equities such as the Nifty and move capital into safer debt instruments.
> 
> When a rate cycle starts moving upward, it can usually put pressure on the equity market. I think debt and equity are generally inversely related, although the relationship is not always direct or consistent.

Stable inflation are positive on the market. I also agree clear runway inflation or currency depreciation may inflate market during desperation. But slowly climbing interest rates are a negative. I think you know discounting cash flow with risk free rate and the math is clear on it: if yield increases, it discounts future value of earnings. In addition higher interest rate is a damper on corporate credit and therefore growth, especially companies with debt - which affect real returns and offset any inflation gains to reduce nominal return.

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