Last Updated on October 26, 2026 8:54 pm by INDIAN AWAAZ
Metal, healthcare and banking stocks lead recovery; elevated crude prices, global uncertainty and earnings outlook keep investors cautious
By Our Business Correspondent
Indian equity markets rebounded on Monday, ending a four-session losing streak as investors bought beaten-down stocks, selected corporate earnings lifted sentiment and a modest easing in crude oil prices offered some relief. The recovery gathered momentum through the session, helping the Nifty 50 reclaim the 22,750 level despite continuing concerns over geopolitical tensions, inflation and the global interest-rate outlook.
The S&P BSE Sensex advanced 482.92 points, or 0.66%, to close at 73,606.75, while the NSE Nifty 50 gained 153.20 points, or 0.68%, to settle at 22,753.20. Both benchmarks recovered from early weakness as buying emerged in banking, metal, healthcare and other selected stocks.
The rebound followed four consecutive sessions of losses during which the Sensex and Nifty had declined 3.49% and 2.36%, respectively. Monday’s gains therefore represented a recovery in investor sentiment rather than a definitive reversal of the recent downward trend.
Broader-market shares outperformed the frontline indices. The Nifty MidCap 150 rose 1.07%, while the Nifty SmallCap 250 advanced 1.13%, indicating that buying interest extended beyond India’s largest listed companies.
Market breadth on the BSE was positive, with 2,420 shares advancing against 2,005 declines, while 262 remained unchanged.
Among the major Nifty constituents, Kotak Mahindra Bank rose 2.38%, Bharti Airtel gained 1.34% and Reliance Industries advanced 0.99%, lending support to the benchmark. Metal and healthcare stocks attracted buying, while consumer durables and fast-moving consumer goods (FMCG) shares remained under pressure.
Oil prices and institutional flows in focus
Crude oil remained a key influence on market sentiment. Brent prices eased from recent highs, providing some relief to investors concerned about the implications of expensive energy for India’s import bill, inflation and corporate margins. However, Brent crude for December 2026 delivery was still trading at elevated levels, settling at $115.16 a barrel on the reported futures contract, down $1.56, or 1.34%.
For India, which imports a substantial proportion of its crude oil requirements, sustained high prices can increase the cost of imports, put pressure on the rupee and complicate the inflation outlook. Higher fuel and transportation costs can also squeeze margins in sectors that have limited pricing power.
Foreign institutional investors (FIIs) purchased Indian equities worth ₹887.65 crore on Friday, offering a supportive signal after the recent market decline. Domestic institutional investors also bought shares worth ₹3,235.36 crore, according to market data reported for the session.
Institutional flows will remain important in determining whether Monday’s recovery can be sustained. Continued foreign selling, if it resumes, could offset domestic buying, particularly if global investors reduce exposure to emerging markets amid elevated energy prices and uncertainty over monetary policy.
The rupee strengthened against the US dollar, trading around 94.21 compared with its previous close of 94.93. The currency’s movement offered some relief on the import-cost front, although a single-session appreciation does not necessarily signal a sustained change in its direction.
The yield on India’s 10-year benchmark government security rose to 7.493%, from 7.473% previously. Higher bond yields can increase borrowing costs across the economy and influence equity valuations, particularly for companies whose earnings are sensitive to interest rates.
Gold futures on the Multi Commodity Exchange for December 4 delivery rose 0.62% to ₹1,42,899. The US Dollar Index was marginally higher at 101.82, while the US 10-year Treasury yield climbed to 4.986%, according to the supplied market figures.
Global markets remain cautious
European equities advanced on Monday as easing oil prices provided some relief following last week’s losses. Investors nevertheless remained cautious ahead of major US technology-company earnings and central bank policy decisions.
US stock futures pointed to a higher opening, with Dow futures gaining 214 points. The recovery followed a weak session on Wall Street on Friday, October 23, when concerns about energy costs and the scale of investment in artificial intelligence weighed on sentiment.
The Dow Jones Industrial Average fell 652.82 points, or 1.23%, to 52,215.16. The S&P 500 declined 39.75 points, or 0.52%, to 7,623.68, while the Nasdaq Composite shed 53.52 points, or 0.21%, to 25,955.34.
Investors are watching quarterly results from major US technology companies, including Alphabet, Microsoft and Amazon, for evidence that substantial spending on artificial intelligence is translating into sustainable revenue and profits. The results could influence valuations across the global technology sector and determine the near-term direction of risk appetite.
Telecommunications shares came under pressure in the US following reports that SpaceX was exploring plans to launch a fourth wireless carrier. AT&T and T-Mobile fell nearly 8% each amid concerns about potential competition.
Energy stocks, meanwhile, benefited from higher oil prices associated with Middle East tensions. Schlumberger gained around 7% following its quarterly results. American Express fell approximately 3.7% despite reporting higher quarterly profits and raising its full-year earnings forecast, as revenue missed market expectations and the company announced plans to cut 5% of its workforce.
Asian markets mostly ended lower as investors weighed geopolitical risks, elevated oil prices and the prospect of a busy week for corporate earnings and monetary policy.
US consumer sentiment remained weak. The University of Michigan’s final consumer sentiment index for October stood at 48.0, compared with 48.1 in September. One-year inflation expectations rose to 4.7% from 4.6%, while five-year expectations increased to 3.5% from 3.4%. Persistent inflation concerns could complicate the Federal Reserve’s policy decisions.
Corporate earnings drive stock-specific moves
Company results and business developments remained major drivers of individual shares, with investors rewarding earnings growth and improving operating performance while assessing margin pressures and forward guidance.
Kotak Mahindra Bank gained 2.38% after reporting a 29% year-on-year increase in standalone net profit to ₹4,212 crore for the second quarter of FY27. Profit was up around 2% from ₹4,123 crore in the preceding quarter.
Net interest income (NII), the difference between interest earned and interest paid, increased 16% year-on-year and 7% sequentially to ₹8,459 crore. However, net interest margin (NIM), a key indicator of lending profitability, moderated to 4.31% from 4.54% a year earlier and 4.53% in the previous quarter. The bank attributed the moderation largely to the mobilisation of foreign currency non-resident bank deposits during the quarter.
Infosys advanced 1.06% despite lowering its FY27 constant-currency revenue growth guidance to 1%-2%. The IT services company reported consolidated net profit attributable to shareholders of ₹7,823 crore for the September quarter, up 6.2% year-on-year. Revenue from operations increased 10.7% year-on-year to ₹49,244 crore. The revised outlook will keep investors focused on client spending, demand conditions and the conversion of its order pipeline into revenue.
Dr Reddy’s Laboratories surged 6.62%, supported by its sequential earnings recovery. Consolidated revenue declined 1.5% year-on-year to ₹8,670.8 crore but rose 7.4% quarter-on-quarter. Net profit attributable to equity shareholders fell 35.6% from a year earlier to ₹925 crore, but more than doubled from ₹443.5 crore in the June quarter. The contrasting year-on-year and sequential comparisons highlight the importance of examining the underlying factors behind quarterly earnings movements.
Bharat Coking Coal climbed 4.23% after reporting a turnaround to a net profit of ₹123.74 crore in Q2 FY27, against a loss of ₹52.99 crore a year earlier. Revenue from operations rose 39.06% to ₹4,412.58 crore from ₹3,173.25 crore. The company attributed the improvement to higher dispatch volumes, better realisations from washed coal and the recognition of ₹386.50 crore in price increases and compensation, compared with no such amount in the year-ago quarter.
Tata Chemicals gained 3.23% after disclosing a Kenyan High Court order concerning a dispute involving its subsidiary, Tata Chemicals Magadi Limited. The court ruled on October 23 that it lacked jurisdiction over the dispute and could not take further steps in the matter. The order did not resolve the underlying regulatory dispute, leaving the broader issue outstanding.
Jyoti Structures surged 10.42% after announcing that it had received project award notifications from Power Grid Corporation of India for transmission-line projects in Rajasthan. The development strengthened sentiment towards the company, although the financial impact will depend on project execution, timelines and order economics.
EAAA India Alternatives IPO opens
The initial public offering of EAAA India Alternatives opened for subscription on Monday and will close on October 28. The price band is ₹1,585-₹1,665 per share, with a minimum application lot of nine shares.
Exchange data cited at 4:33 p.m. showed bids for 5,66,424 shares against 52,99,684 shares on offer, representing subscription of approximately 0.11 times. The issue had therefore received bids for only a fraction of the shares offered by the end of its first trading day.
Investor demand over the remaining bidding period will determine the final subscription level. As with other public offerings, the initial response should be considered alongside the company’s business model, financial performance, valuation and the risks disclosed in its offer documents.
Outlook
Monday’s rebound offered some relief after four sessions of losses, but the market’s next move will depend on the durability of buying, the trajectory of crude oil prices and the quality of quarterly earnings.
Investors will also monitor foreign institutional flows, the rupee, bond yields and signals from major central banks. With geopolitical uncertainty and inflation risks still elevated, stock-specific earnings developments are likely to remain important in determining market leadership.
The recovery in mid-cap and small-cap shares suggests that risk appetite improved during the session. Whether this translates into a sustained advance, however, will depend on whether easing external pressures and corporate earnings can support valuations in the days ahead.
Disclaimer: This report is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Market data and corporate disclosures should be independently verified before making investment decisions.