Monday Market Update: Sensex, Nifty Rebound as Banks Lead Recovery
Mumbai, October 5, 2026: Indian equity markets opened higher on Monday, giving investors some relief after the benchmark indices recorded their eighth consecutive weekly decline, their longest losing streak in 25 years.
Monday Market Update: Sensex, Nifty Rebound as Banks Lead Recovery.
The Sensex rose over 400 points in early trade, while the Nifty 50 moved above 22,500, supported by buying in banking and financial stocks. At around 9:22 am, the Sensex was at 72,322.08, up 412 points, while the Nifty stood at 22,536.75, gaining nearly 115 points.
Banking Stocks Lead the Recovery
Banking and financial stocks were among the biggest gainers in Monday’s session. HDFC Bank advanced following the appointment of Anup Bagchi as its new Chief Executive Officer, while Bajaj Finance also gained strongly following healthy growth in new loans booked during the September quarter.
Public sector banks witnessed renewed buying interest, helping the broader financial sector outperform.
Small- and mid-cap stocks also participated in the recovery, indicating that the positive sentiment was not restricted to large-cap stocks.
Crude and Rupee Remain Key Factors
Crude oil prices have eased somewhat, with Brent trading just above $101 a barrel, providing limited relief to an economy that remains sensitive to imported energy costs.
The rupee opened marginally stronger at around ₹96.22 against the US dollar, although currency weakness remains a concern for investors.
Foreign institutional selling continues to remain a major overhang. Sustained foreign outflows, elevated US Treasury yields and geopolitical uncertainties could keep Indian equities volatile.
RBI Policy in Focus
The Reserve Bank of India’s Monetary Policy Committee meeting begins today, with investors closely watching the central bank’s assessment of inflation, crude prices, currency movements and economic growth.
The RBI’s policy stance will be particularly important for banks, financial stocks and interest-rate-sensitive sectors.
Nifty Outlook
Technically, 22,600 remains an important immediate resistance level. A sustained move above this zone could open the way towards 22,800–23,000.
On the downside, 22,200–22,400 remains an important support area. A decisive breach below 22,200 could revive selling pressure.
For now, Monday’s rise should be viewed as a relief rally rather than confirmation of a complete trend reversal. Investors would be better served by monitoring volumes, institutional flows, crude prices, the rupee and the RBI’s policy signals before taking aggressive positions.
Market Mood: Cautiously positive, but volatility remains high.
