Indian stock markets extended their gains on Tuesday, October 6, as a rally in banking stocks and easing crude oil prices lifted sentiment for a second straight session, ahead of the Reserve Bank of India's monetary policy decision on Wednesday.
According to Reuters, the Sensex rose 0.34 per cent to 72,630.42 and the Nifty 50 gained 0.35 per cent to 22,635.70. The gains followed a stronger session on Monday, when the two benchmarks rose about 0.7 per cent and 0.6 per cent respectively, as the indices attempted to recover from a prolonged downtrend.
Banks lead the rally
Banking and financial stocks were the day's main engine. Axis Bank and Kotak Mahindra Bank advanced after reporting positive quarterly business updates, and 13 of the 16 sectoral indices ended in the green, with financials, banks and private banks among the best performers. Financial stocks carry heavy weightage in both benchmark indices, amplifying their impact.
Tata Group's retail arm Trent was another standout, surging about 10 per cent on expectations of a 23 per cent increase in standalone revenues during the September quarter. Godrej Consumer Products also gained on an upbeat revenue forecast.
Crude relief, but RBI looms
Brent crude was trading at about $101 a barrel, having fallen in the previous session. Higher exports from the Middle East and supply increases by the G7 have eased some supply concerns, though prices remain high enough to leave markets vulnerable to geopolitical disruptions. Since India imports a large share of its oil, the easing helped cool worries about the import bill and inflation.
Caution remains. Foreign institutional investors sold Rs 4,699 crore worth of Indian stocks on Monday, even as domestic institutional investors bought Rs 5,182 crore. Continued FII outflows, elevated US bond yields and a weak rupee could limit the rally.
Investors are now focused on the RBI's monetary policy announcement due Wednesday. Market participants broadly expect a 25-basis-point increase in the repo rate, from 5.25 per cent to 5.50 per cent — which would be the first hike since February 2023.
Sources: Sunday Guardian: Why is the India stock market up today? | The Hindu BusinessLine: Stock Market Today Live, Oct 6
According to Reuters, the Sensex rose 0.34 per cent to 72,630.42 and the Nifty 50 gained 0.35 per cent to 22,635.70. The gains followed a stronger session on Monday, when the two benchmarks rose about 0.7 per cent and 0.6 per cent respectively, as the indices attempted to recover from a prolonged downtrend.
Banks lead the rally
Banking and financial stocks were the day's main engine. Axis Bank and Kotak Mahindra Bank advanced after reporting positive quarterly business updates, and 13 of the 16 sectoral indices ended in the green, with financials, banks and private banks among the best performers. Financial stocks carry heavy weightage in both benchmark indices, amplifying their impact.
Tata Group's retail arm Trent was another standout, surging about 10 per cent on expectations of a 23 per cent increase in standalone revenues during the September quarter. Godrej Consumer Products also gained on an upbeat revenue forecast.
Crude relief, but RBI looms
Brent crude was trading at about $101 a barrel, having fallen in the previous session. Higher exports from the Middle East and supply increases by the G7 have eased some supply concerns, though prices remain high enough to leave markets vulnerable to geopolitical disruptions. Since India imports a large share of its oil, the easing helped cool worries about the import bill and inflation.
Caution remains. Foreign institutional investors sold Rs 4,699 crore worth of Indian stocks on Monday, even as domestic institutional investors bought Rs 5,182 crore. Continued FII outflows, elevated US bond yields and a weak rupee could limit the rally.
Investors are now focused on the RBI's monetary policy announcement due Wednesday. Market participants broadly expect a 25-basis-point increase in the repo rate, from 5.25 per cent to 5.50 per cent — which would be the first hike since February 2023.
Sources: Sunday Guardian: Why is the India stock market up today? | The Hindu BusinessLine: Stock Market Today Live, Oct 6
