Mumbai, Oct 5: Indian equity markets regained momentum on Monday, with the Sensex rising 472.77 points, or 0.66 per cent, to close at 72,382.47, while the Nifty 50 gained 133.80 points, or 0.60 per cent, to 22,555.75. The rebound ended a four-session losing streak and brought some relief to investors after a prolonged period of market weakness.
The recovery was supported by improving global sentiment, softer crude oil prices and reduced concerns about aggressive monetary tightening in the US. Global markets also advanced, helped by expectations that weaker US employment data could reduce pressure on the Federal Reserve to raise interest rates further.
Broad-Based Buying Supports the Recovery
The gains were not limited to a handful of stocks. Most major sectors ended higher, while the broader market also participated in the recovery.
The Nifty Midcap and Smallcap indices rose around 0.5 per cent each, reflecting improved risk appetite among investors. Consumer durables, FMCG, media, infrastructure, oil and gas, PSU banks, telecom and realty stocks were among the sectors that advanced during the session.
Financial stocks were among the key contributors to the market’s rebound, supported by encouraging quarterly business updates from several lenders and financial companies.
Bajaj Finance, ITC, Shriram Finance, NTPC and Tata Motors Passenger Vehicles were among the prominent Nifty gainers, while selling pressure was seen in select technology, healthcare and pharmaceutical stocks.
Falling Crude Offers Relief
A decline in international crude oil prices also helped improve sentiment towards Indian equities. Lower oil prices are particularly important for India because the country remains heavily dependent on imports to meet its energy requirements.
Brent crude slipped to around $101 a barrel, while US crude also moved lower as investors assessed developments in global oil supplies and geopolitical risks.
The softer oil trend provided some relief at a time when elevated crude prices and higher global bond yields had been weighing on Indian markets.
Global Rate Expectations Improve Sentiment
Investor sentiment also benefited from changing expectations around US monetary policy.
Recent US employment data pointed to weaker job growth and slower wage pressures, encouraging markets to scale back expectations of an immediate Federal Reserve rate increase. That shift supported risk assets globally and helped emerging markets, including India.
Asian markets broadly advanced, with Japan’s Nikkei gaining strongly, while European markets remained mixed. The positive global backdrop provided Indian equities with a supportive start to the new trading week.
Recovery Comes After Prolonged Market Pressure
Monday’s gains provide some breathing room for investors, but the broader market trend remains closely linked to global developments.
Indian equities had faced sustained pressure from foreign selling, elevated crude prices and rising global bond yields, with the benchmark indices recording eight consecutive weekly declines through the previous week.
The latest rebound therefore marks an important change in near-term sentiment, although investors are likely to remain watchful of foreign fund flows, crude prices, US interest-rate expectations and upcoming corporate earnings.
For now, the market’s ability to hold above key levels and sustain broader participation will be closely watched as the earnings season gathers pace.
Monday’s recovery shows that investors remain willing to step in when global pressure eases, but a sustained improvement in sentiment will depend on whether favourable global cues continue and corporate earnings provide further support.