Nifty 50, Sensex Pare Early Gains as IT, Auto Shares Weigh; MidCap Index Gains 0.52%

Market Update at 12:40 PM: The Nifty 50 and Sensex pared their early gains on Monday as selling pressure in IT and auto shares weighed on the benchmark indices.

As of 12:35 PM, the Nifty 50 rose 30.55 points or 0.14 per cent to 22,452.50, while the Sensex gained 60.96 points or 0.08 per cent to 71,970.66.

HCLTech, Asian Paints and HDFC Bank were the Top Losers in the Nifty 50 index, exerting pressure on the benchmark despite the overall positive market trend.

In the broader markets, the Nifty MidCap index rose 0.52 per cent, while the Nifty SmallCap index gained 0.11 per cent, indicating relatively positive sentiment among broader market stocks.

Sector-wise, the Nifty PSU Bank, Nifty Metal, Nifty Oil and Gas, Nifty Chemical and Nifty Bank indices outperformed. On the other hand, the Nifty IT, Nifty Pharma and Nifty Healthcare indices declined the most, limiting gains in the headline indices.

Market Update at 10:50 AM: The Nifty 50 and the Sensex rose in morning trade on Monday, October 5, as global equities advanced after fears of monetary tightening eased following supportive economic data.

As of 10:43 AM, the Nifty 50 rose 70.60 points, or 0.31 per cent, to 22,492.55. The Sensex gained 253.95 points, or 0.35 per cent, to 72,163.65.

Bajaj Finance, Shriram Finance, and ITC were the Top Gainers in the Nifty 50 index, supporting the benchmark indices during the morning session.

In the broader market, the Nifty MidCap and Nifty SmallCap indices rose 0.52 per cent and 0.11 per cent, respectively.

Sector-wise, the Nifty PSU Bank, Nifty Metal, Nifty Oil and Gas, Nifty Chemical, and Nifty Bank indices outperformed. Countering the broader trend, the Nifty IT, Nifty Pharma, and Nifty Healthcare indices declined the most.

Market Update at 09:30 AM: The Nifty 50 and the Sensex rose in early trade as global equities advanced after fears of monetary tightening eased following supportive economic data.

As of 9:18 AM, the Sensex rose 458.31 points or 0.64 per cent to 72,368.01, while the Nifty 50 gained 129.75 points or 0.58 per cent to 22,551.70.

Within the Nifty 50 index, Bajaj Finance, Shriram Finance and ITC were the top gainers.

In the broader markets, the Nifty MidCap index rose 0.86 per cent, while the Nifty SmallCap index gained 0.87 per cent, indicating positive sentiment across broader market segments.

Sector-wise, the Nifty PSU Bank, Nifty Metal, Nifty Oil and Gas, Nifty Chemical and Nifty Bank indices outperformed. In contrast, the Nifty IT, Nifty Pharma and Nifty Healthcare indices declined the most.

Pre-Market Update at 7:40 AM: Indian equities are set to resume trading on Monday, October 5, after Friday’s Gandhi Jayanti holiday and an extended weekend. The domestic market enters the new week after the Nifty 50 recorded its eighth consecutive weekly decline. However, improved overnight global cues following weaker-than-expected U.S. employment data could support sentiment at the opening. At the same time, Brent crude above USD 102 a barrel, the rupee near 96.30 against the U.S. dollar and the start of the RBI Monetary Policy Committee meeting are likely to keep the broader macroeconomic backdrop challenging.

GIFT Nifty signals a positive opening bias for domestic equities. The latest independently verifiable numerical quote for GIFT Nifty was 22,660, up 169 points. Against the Nifty 50’s previous close of 22,421.95, the verified futures level represents a premium of 133.55 points, or about 0.60 per cent, indicating a positive opening bias.

Global cues remained supportive after Wall Street ended higher on Friday following a significantly weaker-than-expected September U.S. jobs report. The Dow Jones Industrial Average rose 0.49 per cent to 51,176.46, while the S&P 500 gained 0.73 per cent to 7,722.72. The Nasdaq Composite advanced 1.19 per cent to around 27,191.

U.S. non-farm payrolls increased by only 29,000 in September, compared with market expectations of around 90,000. Previous months were also revised lower. The weaker employment data reduced expectations of another immediate Federal Reserve rate increase, supporting risk appetite across global markets.

Asian markets were broadly positive but trading remained thin as several major markets were closed. Japan’s Nikkei 225 was around 69,858, up 2.27 per cent, extending the risk-on momentum following Friday’s Wall Street rally. The Hang Seng was near 23,972 in delayed trade.

Mainland China remained closed for the National Day Golden Week holiday, while South Korea’s market was also shut for the National Foundation Day holiday. Consequently, there was no current-session Shanghai Composite or Kospi reading to report.

European equities ended Friday higher. The FTSE 100 rose 0.32 per cent to 10,461.95, Germany's DAX advanced 1.17 per cent to 25,231.20, while France's CAC 40 gained 0.79 per cent to 7,897.19.

Brent crude settled Friday at USD 102.25 a barrel, down 0.06 per cent, while WTI fell 1.90 per cent to USD 91.11 after Europe moved towards releasing emergency diesel stocks. However, OPEC+ on Sunday agreed to keep November production targets unchanged, leaving supply risks elevated amid continued Middle East disruptions.

Crude oil above USD 100 remains negative for India's inflation and current-account arithmetic and is a headwind for aviation, paints and other crude-linked industries. Oil marketing companies could also remain sensitive to concerns over retail fuel pricing and marketing margins.

Spot gold was last quoted around USD 4,140.06 an ounce, down 0.9 per cent on Friday. Comex silver ended the week around USD 59.98 an ounce, with precious metals pressured by high bond yields and a strong dollar. MCX was closed on October 2, so no Friday domestic futures close is available.

The Dollar Index fell as low as 101.714 following the weak U.S. jobs report. A verified end-of-session DXY close could not be established from the available sources.

The rupee's latest domestic close was around Rs 96.31-Rs 96.32 per dollar on October 1, compared with roughly Rs 95.82-Rs 95.94 previously, reflecting foreign outflows and elevated crude prices.

The U.S. 10-year Treasury yield was around 5.28 per cent on October 2, up from roughly 5.24 per cent previously. Elevated yields continue to reduce the relative attractiveness of emerging-market assets and remain an important constraint on sustained FII inflows into India.

The Nifty 50 ended October 1 at 22,421.95, down 198.50 points or 0.88 per cent, after trading between 22,217.30 and 22,610.60. The Sensex closed at 71,909.70, down 570.59 points or 0.79 per cent, after touching an Intraday low of 71,292.88 and a high of 72,572.90.

Foreign institutional investors remained heavy sellers, offloading a net Rs 9,484.22 crore, while domestic institutional investors purchased Rs 10,041.84 crore on October 1. India VIX closed at 14.45, up 7.12 per cent, reflecting a noticeable increase in expected near-term volatility.

For the Nifty 50, the 22,200-22,000 zone forms the immediate support area, while 22,500-22,600 is the first resistance zone, followed by 22,800. Bank Nifty closed at 54,450.75, with support around 54,000 and 53,500 and resistance near 54,800 and 55,200.

Monday also marks the beginning of the RBI Monetary Policy Committee meeting, scheduled from October 5 to October 7, with the policy decision due on October 7. The repo rate currently stands at 5.25 per cent, while the market is factoring in the possibility of a 25-basis-point increase amid higher inflation and elevated crude prices. Rate-hike expectations could keep banks, NBFCs, automobiles and Real Estate stocks volatile.

The Q2 earnings season is also beginning. TCS is scheduled to report its Q2 FY27 results on October 8, while Avenue Supermarts is scheduled to announce its results on October 10.

OPEC+ has kept November production targets unchanged, while Brent crude remains above USD 100 amid Middle East supply disruptions. The development is negative for oil-import-sensitive sectors, while potentially supporting upstream energy companies.

The sharp slowdown in U.S. payroll growth to 29,000 has reduced expectations of further Federal Reserve tightening and supported U.S. equities. The development could be positive for global risk sentiment and Indian IT stocks.

SEBI's Project Jagrook will require brokers to display investor-awareness messages on trading applications and websites. The development is neutral for equities but could have an operational impact on broking platforms.

IPO activity will also remain in focus, with Nityas Gems & Jewellery and Vishal Nirmiti scheduled to close for subscription on Monday. Orient Cables, German Green Steel & Power, Acevector and Runwal Enterprises are scheduled to list, making the developments primarily stock-specific.

HDFC Bank will remain in focus after the RBI approved Anoop Bagchi as MD and CEO for a three-year term, removing uncertainty around the bank's leadership succession.

Bajaj Finance will remain in focus after its board approved a preferential warrant issue to raise up to Rs 5,800 crore.

Hindustan Zinc reported a 5 per cent year-on-year increase in mined metal production to 2.71 lakh tonnes in Q2, while saleable metal output increased 7 per cent.

Aurobindo Pharma received final U.S. FDA approval for Perampanel tablets across multiple strengths.

RVNL received an order cancellation from East Coast Railway involving an IP-based video surveillance system.

UCO Bank reported an 18.84 per cent year-on-year increase in total business to Rs 6.37 lakh crore in Q2, while advances grew 24.68 per cent.

Canara Bank reported 16.8 per cent year-on-year growth in domestic advances, while its global business increased 15.8 per cent.

SRF received a GST show-cause notice involving disputed input Tax credit of Rs 266.32 crore.

Disclaimer: The article is for informational purposes only and not investment advice.

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