Domestic equity markets staged a strong rebound on Monday, with both benchmark indices ending higher after early volatility. Buying in metal and banking stocks helped lift sentiment and reverse initial losses.
The Sensex gained 223 points (0.28%) to close above 81,200, while the Nifty 50 added 57 points (0.23%) to end near 24,894. The recovery was led by major metal players such as Tata Steel, Hindalco, and JSW Steel, along with financial heavyweights including Kotak Mahindra Bank and Axis Bank.
The broader market also saw support from renewed investor confidence following the Monetary Policy Committee’s (MPC) recent policy decision, which helped both indices register weekly gains of nearly 1%.
Key Factors Driving Market Sentiment
1. Q2 FY26 Earnings Season
The September quarter results for the IT services sector kick off next week, with Tata Consultancy Services (TCS) set to announce results on October 9. Earnings are expected to remain subdued, given global trade tensions, tariff-related uncertainty, and higher H-1B visa fees announced by the US administration.
2. IPO Pipeline
The primary market is gearing up for a busy week with major offerings, including the Tata Capital IPO and LG Electronics IPO, set to open for subscription. Around five new IPOs—four on the mainboard and one in the SME segment—are expected to collectively raise up to ₹28,500 crore.
3. FOMC Meeting Minutes
The US Federal Reserve will release minutes from its September 16–17 meeting on October 8, where it cut the benchmark interest rate to 4%–4.25%, marking its first rate cut of 2025. The details will be closely watched for signals on the Fed’s future policy stance.
4. US Government Shutdown
The ongoing US government shutdown continues to weigh on global sentiment, with no resolution in sight after the Senate rejected both Democratic and Republican funding bills. The political deadlock is expected to extend into next week.
5. Gold Prices and Market Volatility
Globally, gold prices remained near record highs amid economic concerns from the US shutdown and speculation over further interest rate cuts. Spot gold was last seen trading at $3,884.19 per ounce, close to its lifetime high.
In India, however, gold prices eased by ₹500 to ₹1,20,600 per 10 grams in the national capital after a five-day rally, as profit-booking and a mild rebound in the US dollar tempered demand.
