After eight grueling weeks of red—marking the longest losing streak in 25 years—Indian equities finally caught a break. On Monday, October 6, the Sensex surged 685.34 points to close at 73,067.81, while the Nifty jumped 220.35 points to 22,776.10. The rebound wasn’t just a flash in the pan: broader market indices also finished higher, with only IT and PSU bank sectors lagging behind.
Banking, FMCG, and Durables Power the Comeback
Banking stocks led the charge after several lenders posted upbeat Q2 business updates, stoking hopes of continued credit growth. The Nifty Financial Services 25/50 index rose 0.59%, with private banks up 1.12% and PSU banks gaining 0.22%. Kotak Mahindra Bank soared 3.86%, Axis Bank added 1.40%, and HDFC Bank ticked up 0.21%. Elsewhere, FMCG and consumer durables indices jumped around 2% each, helping offset weakness in healthcare and pharma sectors, which dipped nearly 1%.
Key movers included Trent, which leaped 9.01%, and ITC, up a strong 5.08%. Meanwhile, Reliance Industries rose 0.91% and IndiGo gained 0.63%. On the downside, HCL Tech fell 3.31%, and Max Healthcare, HDFC Bank, Apollo Hospitals, and Asian Paints posted declines.
Oil Prices, Global Cues, and What’s Next
Relief in crude prices played a major supporting role—Brent crude slipped 2% to dip below $99 a barrel, easing inflation anxiety. Softer-than-expected US jobs data also helped soothe fears of aggressive Federal Reserve rate hikes, giving global markets a much-needed shot in the arm.
Independent market analyst Ambareesh Baliga noted that “encouraging Q2 updates from corporates and a slight correction in crude oil prices” boosted market momentum. However, the overall mood remains cautious: V K Vijayakumar of Geojit Investments warned that with US 10-year bond yields at 5.3%, foreign institutional investors are likely to keep selling, making it tough for the bulls to sustain a prolonged rally.
Adding to the suspense, the Reserve Bank of India’s Monetary Policy Committee meets Wednesday, and a 25 basis point rate hike is widely expected. Investors are bracing for clarity on the central bank’s stance amid persistent inflation concerns and rising global bond yields.
Despite Monday’s rally, the market’s breadth was still negative—on the NSE, 1,745 stocks advanced while 1,846 declined, and 115 remained unchanged. For now, the return to green offers battered investors a sliver of hope, but it’s clear that volatility is far from over.
