Indian equity markets extended their recovery on Tuesday, October 6, as the Sensex and Nifty traded higher, supported by buying in banking, metal and other heavyweight stocks. The rally lifted the Nifty 50 above the 22,650 mark, while the Sensex advanced more than 400 points during the session, offering investors some relief after weeks of persistent selling.
The BSE Sensex was up 355.09 points, or 0.49%, at 72,737.56, while the NSE Nifty 50 gained 111.95 points, or 0.50%, to trade at 22,667.70 around 10.48 am, according to live market updates. The benchmarks extended their gains as buying interest spread across several sectors, although weakness in information technology and healthcare stocks limited the broader advance.
The recovery followed Monday’s positive close, when the Sensex rose 472.77 points, or 0.66%, to settle at 72,382.47. The Nifty gained 133.80 points, or 0.60%, to finish at 22,555.75, snapping a four-session losing streak. The back-to-back gains suggest that investors are cautiously returning to equities after a prolonged spell of volatility.
Trent, Kotak Bank lead the rally
Retail major Trent emerged as the standout performer among Nifty 50 constituents, climbing around 10% after its quarterly business update indicated strong revenue growth. The company reported a 23% year-on-year increase in revenue in its latest update, strengthening investor interest in the stock.
Kotak Mahindra Bank was another major gainer, rising around 3.6% following its quarterly business update. The bank reported a 23.2% increase in total deposits to ₹6.51 lakh crore, compared with ₹5.28 lakh crore a year earlier. Its gross advances also increased 22.7% to ₹13.84 lakh crore, while total deposits grew 20.7% at Axis Bank, supporting sentiment across the banking sector.
Hindustan Unilever, Axis Bank and Jio Financial Services were among the other gainers on the Nifty 50. HUL advanced around 1.6%, while Axis Bank and Jio Financial Services gained approximately 1.1% and 1%, respectively.
Banking stocks remained an important source of support for the benchmarks, with investors responding to quarterly business updates and improving buying interest in private-sector lenders.
Healthcare and IT stocks lag
The gains were not uniform across the market. Max Healthcare Institute and Apollo Hospitals were among the leading Nifty 50 laggards, falling approximately 2.4% and 2%, respectively. Cipla, Tech Mahindra and ONGC also traded lower.
Information technology stocks remained under pressure, making the sector one of the notable exceptions to the broader upward movement. Healthcare stocks also faced selling, indicating that investors continued to favour selected sectors and companies rather than buying indiscriminately.
The mixed performance highlights the selective nature of the recovery. While banking and retail shares attracted strong interest, concerns surrounding valuations, earnings prospects and the wider economic outlook continued to influence individual stocks.
Metals and banking stocks support markets
Sectoral performance remained largely positive through the morning. Metal stocks advanced, with the Nifty Metal index gaining close to 1%. Private banks, financial services, power and telecom shares also recorded notable gains. Energy, pharmaceuticals and public-sector banking stocks traded higher as well.
The Nifty Private Bank index rose close to 1%, reflecting strength in lenders such as Kotak Mahindra Bank and Axis Bank. The India VIX, a measure of expected market volatility, declined around 4%, suggesting some easing in near-term nervousness among investors.
Market breadth was positive, with 2,368 shares advancing against 1,218 declining and 194 remaining unchanged at around 10.48 am. The figures indicated that buying extended beyond a handful of heavyweight stocks.
Global cues and crude oil remain in focus
Overseas markets provided some support to domestic equities. Asian shares largely traded higher, while gains on Wall Street in the previous session helped improve sentiment. However, elevated US Treasury yields and uncertainty over the global interest-rate outlook continued to pose risks for emerging markets.
Crude oil prices remained near the $100-per-barrel level despite easing from recent highs. Improved supplies from the Middle East and efforts by major economies to strengthen energy availability helped reduce some concerns about a prolonged supply disruption. Nevertheless, geopolitical tensions continued to leave oil markets vulnerable to sudden price movements.
For India, elevated crude prices remain a concern because the country depends heavily on imported oil. A sustained increase could put pressure on inflation, the rupee and corporate margins, potentially complicating the outlook for equities.
RBI policy decision in focus
Investors are also preparing for the Reserve Bank of India’s upcoming monetary policy decision, due on Wednesday. Expectations surrounding interest rates, inflation and liquidity conditions are likely to influence market direction in the near term.
Foreign institutional investors have remained net sellers, while domestic institutional investors have provided support through continued buying. This divergence has been an important factor behind recent market volatility.
The latest gains offer some encouragement, but the recovery remains fragile. Investors will watch quarterly business updates, crude oil movements, foreign fund flows and the RBI’s policy stance for clearer signals.
Tuesday’s rally shows that buyers are willing to return when valuations and company-specific developments appear attractive. Whether the momentum can be sustained, however, will depend on improving global conditions and stronger confidence in India’s near-term market outlook.