Sensex Surges 348 Points, Nifty Climbs Above 22,650 as Banks, Metals Rally

Sensex, Nifty Hold Firm in Late-Morning Trade

Indian benchmark indices continued to trade higher in late-morning deals on Tuesday, October 6, supported by strong buying in banking, financial and metal stocks.

At 10:50 am, the BSE Sensex was up 348.23 points, or 0.48%, at 72,730.70, while the Nifty gained 112.90 points, or 0.50%, to 22,668.65.

Banking, Financial Stocks Drive Gains

Banking counters remained at the forefront of the market recovery. The Nifty Financial Services index advanced 0.85%, while the Nifty Private Bank index climbed 0.97%. The Nifty Bank index was also higher by 0.50%.

Among Sensex constituents, Kotak Mahindra Bank jumped 3.52%, making it the biggest gainer. Reliance Industries advanced 1.77%, while Hindustan Unilever, Eternal and Axis Bank added more than 1% each.

Tata Steel, HDFC Bank, IndusInd Bank and Larsen & Toubro were among the other stocks trading in positive territory.

Metals, Chemicals Add Strength

The metal pack also attracted strong buying. The Nifty Metal index rose 1.11%, ranking among the best-performing sectoral indices.

The Nifty Chemicals index gained 1.03%, while the Oil & Gas index advanced 0.72%. Pharma stocks also remained firm, with Nifty Pharma rising 0.67% and Nifty Healthcare gaining 0.31%.

IT Stocks Remain Under Pressure

The technology sector moved against the broader market trend. The Nifty IT index slipped 0.95%, weighed down by losses in several major IT companies.

Tech Mahindra was the biggest Sensex loser, declining 1.87%. Infosys, HCL Technologies, ITC and TCS also traded lower, while Titan and M&M remained under pressure.

Broader Market Outperforms

Buying interest was more pronounced in the broader market, with small- and mid-cap indices outperforming the benchmark.

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

Among mid-cap indices, the Nifty Midcap 100 climbed 0.58%, while the Midcap 50 and Midcap 150 gained 0.58% and 0.56%, respectively.

India VIX Falls, Signalling Lower Volatility

Investor risk appetite also appeared to improve as market volatility eased. The India VIX fell 4.67% to 14.09, pointing to a moderation in near-term volatility.

According to Ponmudi R, CEO of Enrich Money, easing crude prices are providing some support to Indian equities. WTI crude was trading around $89-$90 a barrel, with lower oil prices supported by signs of improving crude shipments from the Middle East.

He said higher oil flows and the planned release of emergency reserves were helping reduce immediate concerns over supply.

Middle East Risks Remain a Key Watchpoint

Despite the improvement in sentiment, geopolitical developments remain a major risk for global markets.

Saudi-led coalition naval forces conducted an operation in Yemen’s Al-Hudaydah governorate targeting Houthi threats to shipping routes around the southern Red Sea and Bab el-Mandeb. Continuing attacks and threats to energy infrastructure remain a concern for oil markets.

According to Ponmudi, these risks could restrict the downside in crude prices and keep investors sensitive to developments in the region.

Global Cues Offer Mild Support

Asian markets were also trading slightly higher in early deals. The Nikkei 225 gained more than 0.20%, while South Korea’s Kospi also advanced over 0.20%, offering a mildly positive cue to Indian equities.

The near-term outlook remains cautiously positive, helped by softer crude prices and improving global risk sentiment. However, continued geopolitical uncertainty and the possibility of fresh disruptions to energy and shipping routes could keep investors on guard.

The sustainability of the market recovery will depend largely on the stability of crude prices and the trajectory of developments in the Middle East.