Mumbai | 6-Oct-2025, 15:45 IST —
Filed on 6-Oct-2025, 15:30 IST via NSE/BSE trade data
Indian equities began the week on a firm note, with benchmarks extending their rebound from last week’s late surge. The Sensex closed 583 points higher at 79,140 and the Nifty 50 added 158 points to settle at 25,052, buoyed by sustained strength in banking, IT, and auto counters. Broader markets also participated, with the mid-cap and small-cap indices up around 0.8%.
Key Market Drivers
Banking momentum:
HDFC Bank was among the top contributors to the rally, rising ahead of its Q2 earnings later this week. Market participants expect steady loan growth and improving margins, aided by healthy retail demand. ICICI Bank and Axis Bank also registered gains, supported by optimism around credit growth during the festive season.
IT stocks in focus:
The Nifty IT index climbed more than 1%, with Infosys and TCS witnessing accumulation from institutional investors. Analysts believe that while global demand uncertainties persist, the rupee’s softness and stable order inflows could provide a cushion to earnings. Infosys is scheduled to announce its quarterly results later this week, which will be closely watched for management commentary on FY26 revenue guidance.
Autos accelerate:
Shares of Tata Motors gained further ground, extending their strong run amid hopes of robust festive-season demand and easing raw material costs. Two-wheeler makers like Hero MotoCorp also traded higher, aided by improved rural sentiment.
Market Snapshot
| Index | Close | Change | % Move |
|---|---|---|---|
| Sensex | 79,140 | +583 | +0.74% |
| Nifty 50 | 25,052 | +158 | +0.64% |
| Nifty Bank | 53,245 | +0.9% | — |
| Nifty IT | 42,510 | +1.2% | — |
| Nifty Midcap 100 | 54,210 | +0.8% | — |
| Nifty Smallcap 100 | 18,475 | +0.8% | — |
Turnover & Flows
Trading activity was brisk with NSE cash market turnover crossing ₹87,000 crore, signalling healthy participation across institutional and retail segments. Domestic institutional investors (DIIs) were net buyers, offsetting persistent foreign institutional investor (FII) selling pressure in recent weeks.
Analysts note that sustained DII inflows, coupled with positive retail momentum, are helping markets absorb global volatility. “Flows into mutual funds remain robust, which is providing stability to frontline indices despite overseas selling,” said a senior fund manager at a Mumbai-based AMC.
Sector Watch
- Banks & Financials: Benefited from expectations of strong loan growth and stable asset quality in Q2.
- IT Services: Saw buying interest ahead of earnings, aided by currency tailwinds.
- Automobiles: Continued their festive rally, with Tata Motors, M&M, and Maruti among the top gainers.
- Metals & Energy: Stayed mixed, with Tata Steel and Power Grid facing some profit-taking.
Outlook — What’s Next
The near-term direction of the market is expected to be guided by the Q2 earnings season.
- Banks & IT majors will be first to report, with results from Infosys and HDFC Bank likely to set the tone for sector performance.
- Global cues such as U.S. Federal Reserve policy commentary, bond yield movements, and crude oil prices will remain key triggers for FII flows.
- Sector rotation: Traders expect that leadership may shift between cyclicals and defensives depending on earnings surprises.
Market strategists suggest that while the broader undertone remains constructive, volatility could rise as earnings announcements pick pace.
