Sensex, Nifty Extend Rally for 3rd Day; IT Index Rises 2.28% Ahead of Q2 Earnings

Market Update at 4:15 PM: Indian equity benchmark indices closed higher for the third consecutive session on Monday, October 6, 2025, led by strong buying in financial and IT stocks ahead of the Q2 earnings season. Both the Nifty and the Sensex have gained nearly 2 per cent over the last three trading sessions, while India’s volatility gauge, the India VIX, rose over 1 per cent, indicating increased market volatility.

At the close, the Nifty 50 advanced 183.40 points, or 0.74 per cent, to settle at 25,077.65, while the Sensex climbed 582.95 points, or 0.72 per cent, to end at 81,790.12. Financial stocks led the rally after upbeat business updates, while IT stocks surged ahead of Quarterly Results.

On the sectoral front, seven out of eleven sectors ended in positive territory. The Bank Nifty index rose 515 points, or 0.93 per cent, to reclaim the 56,100 mark, extending gains for the fifth straight session. Ten of the twelve constituents traded in the green after strong Q2 business updates from HDFC Bank and Kotak Mahindra Bank. The Nifty Financial Services and Private Bank indices were up over 1 per cent each, while the Nifty PSU Bank index gained 0.4 per cent.

The Nifty IT index emerged as the top gainer of the day, rising 2.28 per cent, its highest Intraday gain since September 10, with all ten constituents ending higher. The surge came ahead of Tata Consultancy Services (TCS) announcing its quarterly results on October 9. In contrast, the Nifty Media index declined 0.9 per cent.

Among individual stocks, Fortis Healthcare surged 7.5 per cent to a record high after SEBI cleared IHH Healthcare’s additional 26.1 per cent stake purchase. HDFC Bank gained 0.86 per cent after reporting a 9 per cent year-on-year rise in loans and a 15.1 per cent growth in deposits for Q2 FY26. Bajaj Finance rose 1.93 per cent as its assets under management increased by about 24 per cent year-on-year during the July–September quarter.

On the downside, Avenue Supermarts fell 2.64 per cent, marking its third straight session of losses despite reporting 15 per cent year-on-year revenue growth. Lupin declined over 1.5 per cent after the USFDA classified its Pithampur Unit-2 facility as needing regulatory action. Ceigall India gained 2.61 per cent after securing two separate orders worth Rs 712 crore and Rs 597 crore from the Maharashtra State Electricity Distribution Co.

In terms of index movers, HDFC Bank, Infosys, and TCS were the top contributors, adding 29.13, 22.23, and 19.17 points to the Nifty, respectively. ITC, Trent, and Tata Steel were among the top draggers, eroding 6.72, 5.36, and 5.16 points, respectively.

Broader markets also ended in the green, with the Nifty Midcap 100 index rising 0.89 per cent and the Nifty Smallcap 100 index gaining 0.28 per cent, extending gains for the third straight session.

Market breadth, however, remained slightly negative. Out of 3,216 stocks traded on the NSE, 1,386 advanced, 1,730 declined, and 100 remained unchanged. A total of 113 stocks hit their 52-week highs, while 73 touched 52-week lows. Additionally, 113 stocks were locked in Upper Circuits, and 83 in Lower Circuits.

Market Update at 12:30 PM: Indian benchmark indices — Nifty 50 and Sensex — rose about 0.5 per cent each on Monday, supported by strong gains in financial stocks after upbeat business updates boosted expectations of robust quarterly earnings.

Among top performers, HDFC Bank, Bank of Baroda, and Bajaj Finance gained between 1 per cent and 3 per cent, lifting the Nifty Financial Services Index by 1 per cent. Investors turned optimistic as large banks and lenders signalled stable credit growth and improving asset quality ahead of the results season.

The Nifty IT Index jumped 1.7 per cent ahead of the quarterly results, starting with TCS later this week. The IT index has gained 2.25 per cent over the last five sessions, recovering from an 8 per cent decline in the week ended September 26 following concerns over the proposed H-1B visa fee hike in the United States.

Out of the 16 major sectoral indices, 10 advanced, reflecting broad-based buying. Mid-Cap and Small-Cap indices rose 0.5 per cent and 0.2 per cent, respectively, after recent volatility.

In the broader market, Fortis Healthcare surged 7.4 per cent to a record high after SEBI approved IHH Healthcare’s proposal to acquire an additional 26.1 per cent stake in the company.

Market Update at 9:45 AM: India’s key stock benchmarks opened marginally higher on Monday, supported by strong quarterly results from major lenders. The Nifty 50 was up 0.09 per cent at 24,916.55, while the BSE Sensex added 0.08 per cent to 81,274.79 as of 9:15 a.m. IST.

Among sectors, nine of the 16 major indices advanced at the opening bell, with banking stocks leading the gains. The Bank Nifty rose 0.44 per cent after lenders reported robust loan growth for the September quarter.

HDFC Bank reported a 10 per cent growth in advances for the July-September period, while Kotak Mahindra Bank posted a 15 per cent net growth in loan disbursals during the same quarter. These strong results helped boost investor sentiment in the financial sector.

The broader market also showed modest gains, with mid-cap stocks rising 0.1 per cent and small-cap stocks adding 0.3 per cent.

Pre-Market Update at 7:45 AM: Equity benchmark indices Sensex and Nifty 50 are likely to start on a muted note on Friday, October 3, despite positive global cues. At 7:13 AM, the GIFT Nifty was trading at 24,960, down by 10 points. 

Investors this week will focus on key market triggers, including developments over the US government shutdown, the US FOMC meeting minutes, updates on the Israel-Hamas conflict, Q2FY26 corporate earnings, IPO activity, gold price trends, foreign fund flows, and other global and domestic macroeconomic data.

In early trade, Asian markets were trading higher, with Japan’s benchmark index hitting a record high, while US markets ended mixed in the previous session.

On Friday, October 3, Foreign Institutional Investors (FIIs) continued their selling streak for the ninth consecutive day, offloading equities worth Rs 1,583.37 crore. Meanwhile, Domestic Institutional Investors (DIIs) remained net buyers for the 28th straight session, purchasing shares worth Rs 489.76 crore.

Indian equities extended their gains for the second straight session on Friday. The Nifty 50 closed 57.95 points higher at 24,894.25, while the Sensex rose 223.86 points to 81,207.17. The India VIX, a measure of market volatility, declined over 2 per cent to 10, reflecting improved sentiment.

Among sectoral indices, nine out of eleven ended in green. The Nifty Metal index gained 1.82 per cent to a record high, driven by concerns over global copper supply and expectations of a US rate cut. The Nifty PSU Bank index also advanced more than 1 per cent, while Nifty Auto and Nifty Realty saw marginal declines. Broader markets remained positive, with both Nifty Midcap and Smallcap indices closing higher, indicating strong market breadth.

On Friday, the S&P 500 closed at a record high after a volatile session, supported by expectations of further rate cuts. The Dow Jones Industrial Average gained 238.56 points, or 0.51 per cent, to end at 46,758.28. The S&P 500 rose marginally by 0.01 per cent to 6,715.79, while the Nasdaq Composite slipped 63.54 points, or 0.28 per cent, to 22,780.51.

The Federal Reserve had earlier cut interest rates in September for the first time since December, citing softness in the labour market. Private-sector jobs fell by 32,000 in September, following a revised decline of 3,000 in August.

The US services sector showed no growth in September as new orders slowed sharply. The ISM non-manufacturing PMI dropped to 50 from 52.0 in August, while the new orders index fell to 50.4 from 56.0 in the previous month.

Bitcoin hit an all-time high of USD 125,559.21 on Sunday, driven by inflows into Bitcoin ETFs and optimism around the US government situation. The cryptocurrency was last trading 1 per cent higher at USD 123,538.23.

The US dollar index recovered slightly to 98.073 after recent declines. Gold prices surged to record levels above USD 3,900 per ounce amid strong safe-haven demand. Spot gold rose 0.4 per cent to USD 3,900.40 per ounce after touching a record high of USD 3,919.59. On MCX, gold futures closed at Rs 1,18,113 per 10 gm, up 0.45 per cent or 525 points on October 3.

For today, RBL Bank will remain on the F&O ban list.

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