The Indian stock market started the week on a positive note, with the Sensex and Nifty rebounding strongly in early trading. The recovery was supported by a decline in crude oil prices and reduced concerns about another interest-rate hike by the US Federal Reserve at its October meeting.
The BSE Sensex gained 413 points to reach 72,315, while the NSE Nifty rose 131.55 points to 22,554.20 during early trading.
Later in the session, the market extended its gains. The Sensex surged 705.70 points to 72,594.57, while the Nifty climbed 187.30 points to 22,605.10.
Bajaj Finance, ITC, SBI Among Top Gainers
Several major companies from the Sensex pack supported the market’s recovery. Bajaj Finance, ITC, Bajaj Finserv, Larsen & Toubro, Axis Bank and State Bank of India were among the notable gainers.
On the other hand, Bharat Electronics, Sun Pharma, Infosys and Asian Paints were among the stocks trading under pressure.
Sensex Stocks: Gainers and Laggards
| Category | Stocks |
|---|---|
| Major Gainers | Bajaj Finance, ITC, Bajaj Finserv, Larsen & Toubro, Axis Bank, SBI |
| Major Laggards | Bharat Electronics, Sun Pharma, Infosys, Asian Paints |
| Sensex Early Gain | 413 points |
| Sensex Later Gain | 705.70 points |
| Nifty Early Gain | 131.55 points |
| Nifty Later Gain | 187.30 points |
Market Could See a Near-Term Rebound
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the market could be heading toward a near-term recovery after experiencing eight consecutive weeks of declines.
According to Vijayakumar, better-than-expected results from Accenture and the appointment of Anup Bagchi as MD and CEO of HDFC Bank could help improve investor sentiment and support a turnaround in the market.
Anup Bagchi to Lead HDFC Bank
Anup Bagchi is set to become the next Managing Director and CEO of HDFC Bank after the Reserve Bank of India cleared his appointment.
Bagchi has been associated with ICICI Bank and its subsidiaries since 1992. He will succeed Sashidhar Jagdishan as the head of the country’s largest private-sector bank.
According to the bank’s exchange disclosure, Bagchi will take charge as MD and CEO from October 27, with the appointment being made for a three-year term.
Crude Oil Prices Provide Support
Falling crude oil prices also helped improve sentiment in the Indian equity market. Brent crude, the global oil benchmark, declined 0.70% to USD 101.5 per barrel.
Lower crude prices can be positive for oil-importing economies such as India because they can reduce pressure on import costs and inflation.
Ponmudi R, CEO of Enrich Money, said softer-than-expected US employment data had reduced immediate concerns about further Federal Reserve tightening in October. However, elevated US Treasury yields, continued foreign selling and geopolitical risks could limit the market’s upside.
Asian Markets and US Stocks
Asian markets also showed mixed-to-positive trends. Japan’s Nikkei 225 gained more than 2%, while Hong Kong’s Hang Seng Index traded marginally lower.
US markets also closed higher on Friday, providing an additional positive cue for domestic equities at the start of the week.
FIIs Continue to Sell Indian Equities
Despite the market rebound, foreign investor selling remains a concern. According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth ₹9,484.22 crore on Thursday.
Strong FII outflows can continue to create volatility in the Indian stock market and may limit the sustainability of any short-term recovery.
Previous Trading Session
Before the latest rebound, Indian equities had ended sharply lower on Thursday.
| Index/Indicator | Previous Close | Change |
|---|---|---|
| Sensex | 71,909.70 | -570.59 points |
| Sensex % Change | — | -0.79% |
| Nifty | 22,421.95 | -198.50 points |
| Nifty % Change | — | -0.88% |
| FII Selling | — | ₹9,484.22 crore |
The equity markets remained closed on Friday for Gandhi Jayanti, making Monday’s session the first trading session after the holiday.
Key Takeaway for Investors
The strong opening and subsequent gains in the Sensex and Nifty indicate improved short-term investor sentiment. Falling crude oil prices, expectations around US monetary policy and positive global market cues supported the recovery.
However, continued FII selling, high Treasury yields and geopolitical uncertainties remain important factors for investors to monitor. The market’s ability to sustain the rebound will depend on domestic earnings, global cues and upcoming economic developments.
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