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Key gauges snap four-day losing streak; Nifty closes above 22,550 mark
Oct-05-2026

Indian equity benchmarks witnessed a strong recovery on Monday, taking a breather from the recent corrective trend and gaining over half a percent, as softer-than-expected US jobs data reduced expectations of aggressive monetary tightening by the US Federal Reserve, supporting risk appetite across emerging markets. 

Some of the important factors in trade:

Indian economy seen growing 7.3% in Q2FY27: The Finance Ministry, in its September edition of the Monthly Economic Review, said the Indian economy is estimated to have grown by 7.3 per cent in Q2FY27, though at a slower pace than the 7.8 per cent growth recorded in the June quarter. 

India’s private investment demonstrating clear signs of strong revival despite global challenges: Department of Economic Affairs (DEA) Secretary Anuradha Thakur has said that private investment in India is demonstrating clear signs of a strong revival despite global economic uncertainties, with capital formation in Q1FY27 growing at its fastest pace in more than three years.

Global uncertainty now a standing condition; policies should be designed to build resilience: Finance Minister Nirmala Sitharaman said global uncertainty is now a standing condition and there is a need to design policies which build resilience, and called upon nations to have an open and predictable economic relationship.

Weakest monsoon since 2015 prompts ICRA to cut FY27 farm growth forecast: Southwest monsoon rainfall fell to 87 per cent of the long-period average in 2026, the lowest since 2015, prompting rating agency ICRA to cut its agriculture, forestry and fishing growth forecast for the fiscal year to about 1 per cent from 1.3 per cent.  

Global front: European markets were trading mostly in green even as data from Eurostat revealed that Eurozone producer price inflation accelerated in August due to the sharp increase in energy prices. Producer prices increased 8.2 percent on a yearly basis in August, following July's 5.8 percent rise. Asian markets ended mostly higher on Monday as investors trimmed bets on an aggressive policy tightening cycle by the U.S. Federal Reserve. 

Finally, the BSE Sensex rose 472.77 points or 0.66% to 72,382.47 and the CNX Nifty was up by 133.80 points or 0.60% to 22,555.75.

The BSE Sensex touched high and low of 72,631.93 and 71,840.18, respectively. There were 20 stocks advancing against 10 stocks declining on the index. 

The top gaining sectoral indices on the BSE were Telecom up by 2.10%, FMCG up by 1.45%, Consumer Durables up by 0.82%, Utilities up by 0.78% and Banking up by 0.70%, while Healthcare down by 1.13% and IT down by 0.24% were the few losing indices on BSE.

The top gainers on the Sensex were ITC up by 4.49%, Eternal up by 2.50%, Bharti Airtel up by 2.38%, Bajaj Finance up by 2.28% and Adani Ports &SEZ up by 2.13%. On the flip side, HCL Technologies down by 3.69%, HDFC Bank down by 1.99%, Sun Pharma down by 1.55%, Infosys down by 1.50% and Asian Paints down by 1.43% were the top losers.

Meanwhile, the Finance Ministry, in its September edition of the Monthly Economic Review, said the Indian economy is estimated to have grown by 7.3 per cent in the September quarter (Q2) of the current fiscal year (FY27), though at a slower pace than the 7.8 per cent growth recorded in the June quarter. It noted that the economy began FY27 on a firm footing, even as the global environment grew more uncertain. 

It said the conflict in West Asia disrupted energy markets and trade routes, testing economies across the world. India’s real GDP grew by 7.8 per cent in the first quarter, the highest first-quarter growth in the current series. It added that the growth momentum of the June quarter extended into the second quarter of FY27, though at a more measured pace. E-way bill generation and the manufacturing PMI have grown more slowly, while services activity firmed up in August, driven by stronger new business and employment. Electricity and fuel consumption continue to register healthy growth, while bank credit has sustained its strong expansion. Production of capital goods and infrastructure goods points to continued strength in the investment cycle. Automobile sales have grown at a healthy pace across rural and urban markets, underscoring the breadth of consumption.

The report said most high-frequency indicators pointed to continued economic activity in the early part of Q2. The recent sovereign rating upgrade underscores the strengthening of India’s economic fundamentals, with Japan Credit Rating Agency raising India’s rating from BBB+ to A- in September 2026. Monsoon conditions have been more favourable than earlier anticipated, with kharif sowing close to last year’s levels across several crops. This supports the outlook for agricultural output and rural demand, although rabi prospects will require monitoring.

Nevertheless, external risks persist, with renewed geopolitical tensions and the growing weaponisation of supply chains keeping energy prices volatile, tightening global financial conditions and disrupting trade routes. Sustaining growth will therefore require preserving macroeconomic stability and strengthening economic resilience. Overall, industrial activity remained resilient, supported by strong manufacturing GVA growth, continued expansion in industrial production and strengthening bank credit to industry. The report added “Going forward, sustaining industrial momentum while increasing scale, domestic value addition, supply-chain depth and export competitiveness will remain important for broadening the manufacturing base.”

CNX Nifty touched high and low of 22,621.80 and 22,397.10, respectively. There were 31 stocks advancing against 18 stocks declining, while 1 stock remain unchanged on the index. 

The top gainers on Nifty were ITC up by 5.08%, BSE up by 4.39%, Tata Motors Passenger up by 3.31%, Shriram Finance up by 2.79% and Bajaj Finance up by 2.29%. On the flip side, HCL Technologies down by 3.31%, Max Healthcare down by 2.55%, HDFC Bank down by 2.27%, Apollo Hospital down by 1.83% and Asian Paints down by 1.70% were the top losers.  

European markets were trading mostly in green; UK’s FTSE 100 increased 39.05 points or 0.37% to 10,501.00 and Germany’s DAX gained 30.1 points or 0.12% to 25,261.30, while France’s CAC fell 75.99 points or 0.96% to 7,821.20.

Asian markets ended higher on Monday as weak US jobs data trimmed expectations for an October Federal Reserve interest rate hike. Regionally, technology and semiconductor shares surged on reports of an AI-driven collaboration between TSMC and Elon Musk’s Terafab. Japan’s Nikkei and Taiwan Weighted jumped over two percent supported by strong gains among chip related stocks. Meanwhile, stock markets of South Korea and mainland China were closed for a holiday.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

--

--

--

Hang Seng

24,040.34       

68.05

0.28

Jakarta Composite

6,118.86

81.97

1.34

KLSE Composite

1,631.75

0.88

0.05

Nikkei 225

69,946.86       

1,637.4           

2.4

Straits Times

5,664.33

29.51

0.52

KOSPI Composite

--

--

--

Taiwan Weighted

49,712.04

1,236.30

2.55
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