Markets Rally: Sensex Jumps 348 Points, Nifty Crosses 22,650; Banks, Metals Lead

Indian equities extended their upward momentum in Tuesday’s late-morning session, with benchmark indices gaining nearly half a per cent as investors stepped up buying in banking, financial and metal stocks.

At 10:50 am on October 6, the Sensex was higher by 348.23 points, or 0.48%, at 72,730.70, while the Nifty 50 rose 112.90 points, or 0.50%, to 22,668.65.

Banks Lead the Market Upswing

Financial stocks emerged as one of the biggest drivers of the rally. The Nifty Private Bank index advanced 0.97%, while the Nifty Financial Services index gained 0.85%. The Nifty Bank index was also trading 0.50% higher.

Kotak Mahindra Bank stood out among Sensex stocks, surging 3.52%. Reliance Industries gained 1.77%, while Hindustan Unilever, Eternal and Axis Bank advanced more than 1% each.

Tata Steel, HDFC Bank, IndusInd Bank and Larsen & Toubro were among other prominent gainers.

Metal, Chemical Stocks Add to Positive Sentiment

The rally broadened beyond financial counters, with metal and chemical shares attracting strong buying.

The Nifty Metal index climbed 1.11%, while the Nifty Chemicals index rose 1.03%. Oil & Gas stocks advanced 0.72%.

Healthcare counters also remained in demand. The Nifty Pharma index gained 0.67%, while Nifty Healthcare rose 0.31%.

IT Pack Drags

Information technology stocks remained a weak spot in an otherwise positive market.

The Nifty IT index declined 0.95%. On the Sensex, Tech Mahindra fell 1.87%, making it the biggest loser. Infosys, HCL Technologies, ITC and TCS also traded in the red, while Titan and M&M remained lower.

Small, Mid-Caps Outperform

The broader market continued to show stronger momentum than the benchmark indices.

The Nifty Smallcap 100 and Smallcap 500 indices rose 0.89% each, while the Smallcap 250 gained 0.84%. The Nifty Microcap 250 advanced 1.02%.

Mid-cap stocks also remained firm, with the Nifty Midcap 100 up 0.58%. The Nifty Midcap 50 and Midcap 150 gained 0.58% and 0.56%, respectively.

Volatility Cools

Market volatility eased significantly during the session. The India VIX dropped 4.67% to 14.09, indicating a reduction in near-term uncertainty and a modest improvement in investor risk appetite.

Ponmudi R, CEO of Enrich Money, said softer crude prices were offering some relief to Indian markets. WTI crude was trading around $89-$90 per barrel, following a decline in oil prices amid indications of improving crude shipments from the Middle East.

He said stronger oil flows and plans to release emergency reserves were helping ease immediate concerns about supply.

Geopolitical Risks Still in Focus

Despite the positive market tone, developments in the Middle East remain a key source of uncertainty.

Saudi-led coalition naval forces conducted an operation in Yemen’s Al-Hudaydah governorate to counter Houthi threats to shipping in the southern Red Sea and Bab el-Mandab. Continued risks to energy infrastructure and shipping lanes could keep crude prices volatile.

Ponmudi said these geopolitical concerns could limit further declines in oil prices and make markets vulnerable to fresh developments in the region.

Asian Markets Provide Positive Cue

Global signals were mildly supportive, with Asian equities trading higher in early deals. The Nikkei 225 gained more than 0.20%, while the Kospi also rose over 0.20%.

The near-term outlook for Indian equities remains cautiously constructive, helped by softer crude prices and relatively improved global sentiment. However, persistent geopolitical tensions and the possibility of disruptions to energy and shipping routes could keep investors cautious.

For the domestic market, the durability of the current recovery is likely to depend on crude-price stability and how the geopolitical situation in the Middle East evolves.