Indian equities extended their recovery for the second consecutive session on Tuesday, with Sensex jumping 685.34 points or 0.95% to settle at 73,067.81 and Nifty 50 climbing 220.35 points or 0.98% to end at 22,776.10. According to The Financial Express, investors' wealth increased by ₹4.54 lakh crore on Tuesday and by ₹6.65 lakh crore over the past two sessions, supported by strong Q2 earnings and sectoral gains. The market benchmark indices closed higher as further decline in crude oil prices eased some of the macroeconomic pressure weighing on sentiment. The Nifty 50 breached the key resistance zone of 22,700 that analysts had flagged, with heavy buying in bank stocks and Reliance Industries adding to investor optimism. On Monday (October 5), the Sensex had jumped 472.77 points or 0.66% to settle at 72,382.47, while the Nifty climbed 133.80 points or 0.60% to end at 22,555.75. Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,961.30 crore, while domestic institutional investors bought shares worth ₹5,088.92 crore, as per provisional exchange data.
Market breadth turned decisively positive with 2,823 gainers against 1,555 losers on the BSE, as per The Financial Express. Broader markets also staged a solid recovery, with the Nifty Smallcap 100 rising 1.56% and the Nifty Midcap 100 gaining 1.08%, as per The Economic Times. The broader market also participated in the rally, with both the midcap and smallcap indices gaining between 1% and 1.5%. Among sectoral indices, Nifty FMCG, Pharma, Private Bank, Healthcare, Oil & Gas, and Chemicals indices ended with gains of more than 1% each. Sectorally, buying in private banking, consumer durables, pharma and energy stocks supported the recovery, with these sectors emerging among the stronger performers, while IT and realty lagged. With a gain of 12.8%, Trent led the Sensex gainers, followed by Kotak Mahindra Bank, Hindustan Unilever, Reliance Industries and IndiGo, while Tech Mahindra, Titan Company, Bajaj Finance, ITC and UltraTech Cement were the top Sensex losers. As per The Hindu BusinessLine, nearly all sectoral indices opened in the green with marginal gains, except a few like Nifty IT and Nifty Auto which slipped into the red with marginal losses. Broader market indices, Nifty Midcap 150 and Nifty Smallcap 250, also advanced 1.03% and 1.4% respectively, as per Business Standard.
Brent crude December oil futures were trading at $97.4 a barrel on Tuesday evening, down from $100.3 a barrel at Monday's close, providing significant relief to Indian markets as WTI crude stayed above $100 a barrel, with tanker and refining bottlenecks continuing to underpin prices. The decline came after a large G7 stockpile release and alternative supplies through pipelines helped offset disruptions to vessel movements through the Strait of Hormuz. ONGC slipped 1.28% to ₹222.03, the latter under pressure as crude oil prices eased with recovering Middle East exports. A Saudi-backed military operation against Houthis in Yemen's Al-Hudaydah region added a fresh layer of supply-risk concern. Ponmudi R, CEO of Enrich Money, noted that "Indian equities extended their rebound for a second consecutive session on Tuesday, with benchmark indices closing higher as further decline in crude oil prices eased some of the macroeconomic pressure weighing on sentiment." Vinod Nair, Head of Research at Geojit Investments, noted that "Crude oil prices slipped below the $100 mark after a large G7 stockpile release and alternative supplies through pipelines helped offset disruptions to vessel movements through the Strait of Hormuz."
Vedanta shares advanced as much as 4.06% to touch an intraday high of ₹265.40 as the company announced its board will meet on Thursday, October 8, 2026, to consider and approve its first interim dividend for FY27. The record date for determining equity shareholder entitlement has been fixed as Wednesday, October 14, 2026. Honasa Consumer rallied as much as 11.5% to hit an intraday high of ₹493 after the company expects net sales value growth in the early thirties year-on-year in Q2 FY27, with Mamaearth expected to post high-teens YoY NSV growth and younger brands accelerating growth to around the mid-forties. Angel One's stock rose as much as 3% to hit the session's peak of ₹293.75 after announcing total client base stood at 39.98 million, up 17.3% YoY from 34.08 million. Meanwhile, shares of the exchanges, BSE and NSE, as well as brokerages gained after Reuters reported that the Securities and Exchange Board of India is considering a partial rollback of derivatives-market rules.
Markets are expected to remain directionally sensitive through the second half, with Wednesday's RBI MPC meeting continuing to dominate near-term sentiment. According to Live Mint, there is buzz on Dalal Street that the RBI MPC meeting may come with a decision to keep the interest rate unchanged. Markets are pricing in a 25 basis point repo rate hike to 5.50 per cent at tomorrow's RBI announcement, with 38 of 61 economists polled expecting the move. Overnight, the Nasdaq Composite rose 1.05% to a record close of 27,477, the S&P 500 gained 0.66% to 7,774, and the Dow added 0.18%, led by Nvidia hitting a record high. September US payrolls came in at 29,000 against an estimate of 84,000, pushing market-implied odds of an October Fed rate hold to about 78 per cent from 36 per cent a week earlier. In Asian markets, Japan's Nikkei 225 index and Hang Seng index ended in positive territory, while South Korea's Kospi quoted lower. European markets were trading higher and U.S. markets ended higher on Monday (October 6). Lokesh Manik, senior analyst at Vallum Capital, said he sees two key drivers behind the rebound: "First, we strongly believe the RBI will stay on hold, and the recent rise in bond yields has, in our view, over-discounted the possibility of a rate hike — the tail is wagging the dog. If the RBI does not validate this pricing, we could see a meaningful reversal in yields." Sunny Agrawal, head of fundamental retail research at SBI Securities, noted that "Positive second-quarter updates from the consumer and banking segments, ahead of the results season, along with strength in heavyweight RIL following expectations of the launch of the Jio Platforms initial public offering around Dussehra, have supported the market."
Market breadth turned decisively positive with 2,823 gainers against 1,555 losers on the BSE, as per The Financial Express. A total of 128 stocks hit 52-week highs against 122 at 52-week lows, while 168 stocks were locked in upper circuits and 183 in lower circuits. A nearly 5% decline in India VIX supported the move, with heavy buying in Reliance Industries anchoring the broader advance. The India Volatility Index, or Vix, cooled off by 8 per cent to 13.59, signalling some optimism on the Street, as per Business Standard. Sudeep Shah, Vice President, Technical and Derivatives Research at SBI Securities, noted Nifty Private Bank as the best performing sectoral index for the session. On the options front, meaningful call writing was seen at 22,700 and 22,800 strikes, while 22,600 and 22,500 puts carried substantial open interest. Shrikant Chouhan, Head of Equity Research at Kotak Securities, placed key intraday support for the Nifty at 22,400–22,450 and resistance at 22,700–22,750, while Pabitro Mukherjee of Bajaj Broking said a "sustained Higher High–Higher Low structure and reclaim of the 23,000–23,100 level" would be needed for a meaningful trend reversal. Ruchit Jain, head of equity technical research at Motilal Oswal Financial Services, said the Nifty is seeing a pullback from its March lows. "For this recovery to develop into a sustainable trend, the Nifty will need to close above its 20-day exponential moving average zone of 23,000-23,100, which remains the key near-term resistance. Support is seen at 22,400-22,200."
