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The Indian stock market reversed its recent losses in Monday's trade, 5 October, as the headline indices closed with gains of over 0.50%, supported by strong gains in the tech sector, while a rebound in financials and consumer goods also aided sentiment.
The markets opened the session on a higher note after their longest weekly losing streak in 25 years, and at one point, the Nifty 50 gained nearly 1% at its day's high before pairing gains as higher levels prompted investors to book profits.
The global backdrop also turned in favor of bulls as a drop in crude oil prices, coupled with softer-than-expected US jobs data, reduced expectations of a Federal Reserve rate hike later this month. Market attention has now shifted to the upcoming RBI MPC policy outcome, with the Street expecting a rate hike.
The Nifty concluded the session at 22,535, 0.51% higher than Friday's close, while the Sensex advanced 0.56% to 72,312. The positive sentiment also spilled over into the broader market, as both the Nifty Midcap 100 and Nifty Smallcap 100 indices finished the session with gains of 0.54% and 0.51%, respectively.
Sectoral performance remained mixed, as FMCG, consumer durables, media and PSU banks ended higher, while pharma and chemicals closed lower.
Brent crude for December delivery slipped 0.5% to about $101.75 a barrel after Saudi Arabia cut prices of its benchmark grade to Asia as flows expand. Oil's decline is further bolstering sentiment after Friday's US jobs report showed employers added fewer workers than forecast, prompting money markets to price in less than a 20% chance of an October Fed hike.
The reprieve for bonds came against a months-long rout fueled by persistent inflation concerns, government spending, and surging corporate borrowing to finance the artificial intelligence buildout.
On Friday, G7 countries agreed to release 100 million barrels of crude and diesel from emergency reserves, while pledging not to impose restrictions on energy exports.
Among other key Asian markets, Japan's benchmark Nikkei 225 jumped 2.4% to finish at 69,946.86. Earlier in the day, it briefly climbed above 70,000 points for the first time in three months.
Australia's S&P/ASX 200 was little changed, edging up less than 0.1% to 8,686.40. Hong Kong's Hang Seng gained 0.3% to 24,040.34. Trading was closed in Shanghai and South Korea for national holidays.
Interest in artificial intelligence-related stocks drove buying interest. In Japan, Tokyo Electron gained 5.5%, while technology investment giant SoftBank Group's shares gained 3%. Taiwan Semiconductor Manufacturing Co., or TSMC, climbed 3%.
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said technically, the Nifty tested its broken weekly 200-SMA zone at 22,580–22,600 but closed below it. A sustained move above this band could extend the recovery toward 22,800, while rejection would keep 22,400 as the immediate support. Bank Nifty must reclaim its weekly 100-SMA near 55,175, with support around 54,000.
India VIX increased to 14.68, showing that event risk remains elevated, while the PCR improved to 0.91 from deeply defensive levels, indicating more balanced positioning.
Hariselvan said the rebound can extend if the Nifty closes above 22,600 with broader participation and Bank Nifty crosses 55,175. Failure to clear these levels, especially alongside renewed strength in crude or a hawkish RBI outcome, could bring selling pressure back into the market.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said after a prolonged correction on the daily and intraday charts, the market has formed a reversal pattern. However, the short-term market outlook remains weak.
"We believe 22,400/72000 and 22,350/71800 will act as key support levels for day traders. As long as the market trades above these levels, the pullback is likely to continue. On the upside, the index could rebound to 22,700/72800, with further gains potentially taking it to 22,800/73000," he added.
Shrikant Chouhan said conversely, a break below 22,350/71,800 could accelerate selling pressure and lead to a retest of the 22,250–22,200/71,500–71,300 range.
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Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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