Indian Equities Rebound as Oil Falls, Rate-Hike Concerns Ease

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

iStock.com

By Dehuti Jani

October 5, 2026 at 12:51 PM IST

A pullback in oil prices and easing concerns over aggressive US monetary tightening led benchmark equity indices to rebound on Monday after their longest weekly losing streak in 25 years. The Nifty50 rose 0.51% to 22,535.45, while the Sensex gained 0.56% to 72,312.23 in the closing auction session.

The indices had fallen for eight straight weeks through Friday, weighed by record foreign selling, elevated oil prices and a sharp rise in global bond yields.

Market sentiment improved after softer-than-expected US jobs data reduced expectations of a rate hike by the Federal Reserve later this month, providing relief to emerging-market assets. Lower crude prices also supported sentiment. Thirteen of the 16 major sectors rose, while the Nifty MidCap and Nifty SmallCap indices gained 0.52% and 0.11%, respectively.

Financial stocks led the gains after positive quarterly business updates, with the Nifty Bank and Nifty Financial Services indices rising 0.5% and 0.4%, respectively, while the Nifty PSU Bank index gained 1%. Nifty Consumer Durables rose the most among sectors, while Nifty Healthcare declined. HCLTech, Asian Paints and HDFC Bank were the top Nifty 50 losers as IT and auto shares pared early gains for the broader market.

The rupee ended little changed at 96.2925 per US dollar, compared with 96.3150 in the previous session, as a firm dollar and higher oil prices offset likely intervention by the RBI. Persistent importer hedging and exporters' reluctance to sell dollars continued to weigh on the currency.

Indian government bonds traded in a narrow range as the RBI's monetary policy meeting began, with traders avoiding large positions ahead of the outcome. The benchmark 10-year gilt yield ended at 7.2108%, compared with 7.2133% at the previous close.

Top Movers of the Day

TCS shares rose 1.45% to ₹2,105, supported by a rebound in the IT sector, broader AI optimism, and Morgan Stanley’s bullish view following TCS’s acquisition of Best Buy’s Global Capability Centre.

Infosys fell 1.55% to ₹1,019 on a cautious outlook triggered by Accenture’s guidance signalling continued pricing pressure and subdued discretionary tech spending globally.

Tech Mahindra ended mostly flat, down 0.2% to ₹1,529.90 after signalling a technical breakout. The counter attracted heavy interest as traders positioned for a potential mean-reversion in mid-cap IT after a prolonged correction.

Bajaj Finance rose 2.38% to ₹970.90, moving above key resistance levels following positive growth metrics announced in the quarterly business update and as major brokerage firms like JP Morgan and HSBC upgraded their target prices.

Larsen & Toubro was up 1.08% to ₹3,733.40 after announcing receipt of a major order under Regulation 30 of the LODR. The order wins improved execution visibility in infrastructure and heavy engineering, supporting selective buying.

Coal India rose 1.21% to ₹425.50, supported by steady production data and defensive positioning in energy. The stock outperformed as investors favoured PSU names in a fragile market.

Adani Ports & SEZ surged 2.29% to ₹1,777.60, supported by optimism over port traffic and logistics investment. The company is also expected to benefit from Red Sea and Houthi shipping disruptions reshaping global trade routes.

AceVector (Snapdeal parent) listed at ₹28.32 on the NSE, down 11.5% from its ₹32 issue price, valuing the company at about ₹12.96 billion. The subdued debut reflected investor concerns over the absence of profitability, despite the valuation being viewed as reasonable for the e-commerce platform.

HDFC Bank gave up early gains and ended lower at ₹704.55 down 2.31% after the appointment of Anup Bagchi as CEO, the first outsider to lead India's largest private lender. Bagchi succeeds Sashidhar Jagdishan, who opted not to seek reappointment, creating some uncertainty over strategy continuity.

Reliance Industries ended up 1.81% to ₹1,188.80, driven by a broader relief rally and ease in Brent crude price intraday that lowers input cost pressures for its refining and O2C segment.

Futures & Options
The Nifty October 2026 futures closed at 22,623.70, a premium of 67.95 points over the Nifty 50's cash-market close of 22,555.75. The Nifty 50 rose 133.80 points, or 0.60%, during the session, while the NSE's India VIX, a gauge of expected near-term volatility, rose 1.47% to 14.67.

HDFC Bank, Infosys, and Tata Consultancy Services were the most-traded individual stock futures contracts in the NSE's F&O segment. The October 2026 F&O contracts will expire on 27 October 2026.

Bonds
The benchmark 10-year gilt yield was largely unchanged at 7.2108% on Monday, compared with 7.2133% at the previous close, as traders avoided large positions ahead of the Reserve Bank of India's monetary policy outcome.

Overseas pressures increased during the session, prompting gilts to give up their earlier gains. Brent crude rose to $102 a barrel, while the 10-year US Treasury yield climbed to 5.27%, keeping traders cautious amid geopolitical tensions.

A 91bps poll estimates a 25-basis-point RBI rate hike, which is already priced into the yield curve, although some market participants expect a 50-basis-point increase. Traders are also watching the RBI's liquidity management, with expectations of continued absorption of surplus liquidity through open-market operations and concerns that the central bank could increase the cash reserve ratio.

Forex
The Indian rupee ended little changed on Monday, caught between a broadly firmer dollar, higher oil prices and likely intervention by the Reserve Bank of India, which kept the currency in a narrow trading range. The rupee closed at 96.2925 per US dollar, compared with 96.3150 in the previous session.

The dollar started the week on firm footing, hovering near a 17-month high, supported by weakness in the euro amid concerns over France's fiscal position. The greenback pushed Asian currencies 0.1%-0.5% lower. Persistent importer hedging and exporters' reluctance to sell dollars have added to pressure on the rupee, leaving it reliant on RBI intervention to avoid testing the record lows reached in May.

Crypto
The global crypto market strengthened on Monday, supported by renewed capital inflows, a weaker US dollar and positive macroeconomic signals. Lower futures leverage and low funding rates also improved market positioning, while a large cluster of leveraged short positions could amplify gains if buying momentum persists.

Bitcoin traded around $85,774 after reaching an intraday high of $86,929, testing key resistance levels. Ethereum held above $2,700 at $2,709 after touching $2,735, supported by steady network demand ahead of upcoming testnet upgrades. Positive institutional sentiment also provided support after Citigroup raised its 12-month forecasts for Bitcoin and Ethereum.

US Stock Futures
US stock futures fell early Monday as elevated Treasury yields weighed on investor sentiment ahead of the Federal Reserve's policy meeting later this week. Dow Jones Industrial Average futures slipped 0.14%, S&P 500 futures fell 0.18%, while Nasdaq-100 futures declined 0.24%.

US stocks ended under pressure from surging Treasury yields last week, although a weaker-than-expected jobs report eased concerns over another Federal Reserve rate hike this month and provided some relief to markets.

US Treasury Notes
US Treasury note yields were marginally lower on Monday, pausing a multi-decade bond sell-off after weaker-than-expected September jobs data prompted investors to pare back expectations of immediate Federal Reserve rate hikes. The US economy added 29,000 jobs in September, compared with forecasts for 84,000.

The 10-year Treasury yield hovered around 5.277%, while the 2-year yield stood at 4.81%. Despite the intraday easing, yields remained near their highest levels in more than two decades as investors weighed elevated energy costs, large US fiscal deficits and strong capital demand linked to artificial intelligence infrastructure.

Top News

Printing is Disabled

Indian Equities Rebound as Oil Falls, Rate-Hike Concerns Ease