Domestic equities ended sharply higher on Monday as upbeat quarterly earnings and global cues lifted investor sentiment. The rally was broad-based, with energy, PSU banks and metal stocks leading the charge.
Gains were driven by renewed optimism over progress in U.S.-China trade negotiations, while soft U.S. inflation data strengthened expectations of additional Federal Reserve rate cuts later this year. These factors, combined with a firm rupee and renewed foreign fund inflows, kept risk appetite strong.
Market participants also drew comfort from a robust start to India’s festive season demand and better-than-expected earnings from several blue-chip companies.
The S&P BSE Sensex advanced 566.96 points or 0.67% to 84,788.84. The Nifty 50 index added 170.90 points or 0.66% to 25,966.05.
Bharti Airtel (up 2.56%), Reliance Industries (up 2.24%) and HDFC Bank (up 0.82%)
In the broader market, the S&P BSE Mid-Cap index rose 0.72% and the S&P BSE Small-Cap index jumped 0.51%.
The market breadth was positive. On the BSE, 2178 shares rose and 2114 shares fell. A total of 218 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 2.30% to 11.86.
Economy:
India’s foreign exchange reserves rose by $4.496 billion to $702.28 billion for the week ending 17 October, mainly driven by an increase in the value of gold reserves, the Reserve Bank of India (RBI) said on Friday.
Foreign currency assets (FCA), the largest part of the reserves, fell by $1.692 billion to $570.411 billion.
Meanwhile, the value of gold reserves rose sharply by $6.181 billion to $108.546 billion during the week. Special Drawing Rights (SDRs) also saw a slight increase of $38 million, reaching $18.722 billion.
India’s reserve position with the International Monetary Fund (IMF) fell by $30 million to $4.602 billion in the reporting week, according to RBI data.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 0.14% to 6.542 from the previous close of 6.533.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 88.2450 compared with its close of 87.8300 during the previous trading session.
MCX Gold futures for 3 October 2025 settlement declined 1.44% to Rs 121,676.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.13% to 98.62.
The United States 10-year bond yield added 0.68% to 4.024.
In the commodities market, Brent crude for December 2025 settlement lost 44 cents or 0.67 % to $65.50 a barrel.
Global Markets:
The US Dow Jones index futures is currently up by 259 points, signaling a positive opening for US stocks today.
Most European indices advanced on Monday as traders look ahead to the U.S. Federal Reserve’s meeting, more earnings and signs of a rapprochement between Washington and Beijing.
Most Asian shares ended higher as signs of easing trade tensions between China and the U.S. buoyed investor sentiment, in a strong start to a week dominated by central bank meetings and megacap earnings.
Japan’s Nikkei 225 surged over 2%, crossing the 50,000 mark for the first time.
Investors cheered progress in U.S.-China trade talks and strong momentum from Wall Street. Japanese Prime Minister Sanae Takaichi is scheduled to meet U.S. President Donald Trump during his visit to Japan this week.
The rally followed reports that top U.S. and Chinese trade negotiators had agreed on a framework for several disputed issues, paving the way for Trump and Chinese President Xi Jinping to sign off on the terms.
U.S. Treasury Secretary Scott Bessent reportedly said that Trump’s proposed 100% tariffs on Chinese imports are “effectively off the table.” He added that China is expected to make significant soybean purchases and delay broad rare earth export restrictions, while the U.S. will maintain existing export controls.
On Wall Street, all three major averages closed at record highs on Friday as cooling inflation data raised hopes that the Federal Reserve could continue its rate-cutting path. The Dow Jones Industrial Average rose 472.51 points (1.01%) to 47,207.12, the S&P 500 gained 0.79% to 6,791.69, and the Nasdaq Composite added 1.15% to 23,204.87.
The U.S. consumer price index (CPI) rose 0.3% in September, pushing the annual inflation rate to 3%, a 0.1 percentage point increase from August. Core CPI, excluding food and energy, rose 0.2% for the month and 3% annually, compared with 0.3% monthly gains in July and August.
Stocks in Spotlight:
PSU banks were in demand on reports that the government may allow up to 49% direct foreign investment in state-run banks.
The Nifty PSU bank index added 2.22% to 7,990.65. Bank of India surged 5.05%, followed by Canara Bank and Bank of Baroda, both up 3.38%. Central Bank of India gained 2.88%, while Punjab National Bank advanced 2.78%. Among others, UCO Bank climbed 2.65%, Union Bank of India added 2.63%, State Bank of India rose 2.48%, and Indian Overseas Bank gained 2.15%. Punjab & Sind Bank was up 1.66%, Indian Bank increased 1.63%, and Bank of Maharashtra edged higher by 0.53%.
Multi Commodity Exchange of India (MCX) rose 3.23% after the exchange announced the launch of options on its bullion index – MCX BULLDEX, effective 27 October 2025.
Kotak Mahindra Bank fell 1.74% after its standalone net profit slipped 2.70% to Rs 3,253.33 crore in Q2 FY26 as against Rs 3,343.72 crore posted in Q2 FY25. However, total income rose 2.12% year on year (YoY) to Rs 16,238.59 crore in Q2 FY26.
Tata Investment Corporation ended flat at Rs 837.20. The company reported a 19.78% jump in consolidated net profit to Rs 148.16 crore on 8.07% increase in revenue from operations to Rs 153.98 crore in Q2 FY26 over Q2 FY25.
Ola Electric Mobility fell 2.08% after the company announced that its board has approved a proposal to raise up to Rs 1,500 crore through a mix of equity and convertible securities.
Coforge jumped 3.95% after it has reported an 18.4% rise in consolidated net profit to Rs 375.8 crore on an 8.05% increase in revenue to Rs 3,985.7 crore in Q2 FY26 as compared with Q1 FY26.
Garuda Construction and Engineering fell 4.50%. The company has reported 2.7x jump in consolidated net profit to Rs 27.12 crore on 2.5 times increase in revenue from operations to Rs 116.49 crore in Q2 FY26 as compared with Q2 FY25.
Pace Digitek declined 3.53% after the company’s consolidated net profit fell 2.88% to Rs 54.69 crore in Q2FY26 compared with Rs 56.31 crore posted in Q1 FY26. Revenue from operations tumbled 46.28% QoQ to Rs 367.07 crore in Q2 September 2025.
Bhagyanagar India hit an upper circuit of 20% after the company’s consolidated net profit soared 202% year-on-year to Rs 11.27 crore in Q2 FY26, compared with Rs 3.73 crore in Q2 FY25. Revenue from operations rose 42.2% YoY to Rs 580.37 crore from Rs 408.02 crore in the same quarter last year and was 19.5% higher than Rs 485.6 crore recorded in the preceding quarter.
Zen Technologies fell 4.13% after the company reported a mixed set of numbers for the September 2025 quarter. On a consolidated basis, the company’s net profit (adjusted for non-controlling interest) stood at Rs 59.4 crore in Q2 FY26, down 5.2% year-on-year from Rs 62.7 crore in Q2 FY25, though it rose 24.4% sequentially from Rs 47.8 crore in Q1 FY26. Total revenue came in at Rs 198.9 crore, declining 20.6% YoY from Rs 250.3 crore a year earlier, but up 10.5% QoQ from Rs 180 crore in Q1 FY26.
Chennai Petroleum Corporation rose 0.38%. The company reported a consolidated net profit of Rs 731.55 crore in Q2 FY26 as against a net loss of Rs 629.49 crore posted in Q2 FY25. Net revenue from operations increased by 35.1% YoY to Rs 16,327.34 crore during the quarter.
Hatsun Agro Products hit an upper circuit of 20% after the company reported a net profit of Rs 109.78 crore in Q2 FY26, up 73.13% year-on-year from Rs 63.41 crore in Q2 FY25. Revenue from operations rose 17.1% YoY to Rs 2,427.59 crore from Rs 2,072.10 crore in the year-ago quarter.
GPT Infraprojects jumped 6.68% after the company announced that it has secured an order worth Rs 195 crore from Terminal Industriel Polyvalent de San Pedro (TIPSP) in Ivory Coast.
Unimech Aerospace and Manufacturing rose 1.12% after the company announced that it has secured an order worth Rs 35 crore from an overseas customer. The project is scheduled for execution over a period of 5 to 12 months.