Indian Equities Snap Eight-Week Losing Streak, Sensex Jumps Over 400 Points on Global Cues
The market's rebound, driven by softer US jobs data, comes as the RBI's Monetary Policy Committee begins its crucial October meeting, with rate hike expectations in focus.
The story
Indian equity markets opened significantly higher on Monday, October 5, effectively snapping an eight-week consecutive losing streak. The Sensex jumped over 400 points in early trade, opening at 72,340.95, while the Nifty 50 crossed the 22,500 mark, opening at 22,532.40. [36, 43] This positive sentiment was largely a result of softer-than-expected US jobs data, which eased fears of an immediate Federal Reserve rate hike and lifted global risk appetite. [14, 36] A retreat in crude oil prices also contributed to the improved mood among investors. [13, 35]
Later in the trading session, the benchmarks trimmed some of their initial gains. The BSE Sensex settled at 72,041.28, up 131.58 points (0.18%), and the NSE Nifty 50 closed at 22,483.80, a gain of 38.25 points (0.17%). [31] Sectorally, the Nifty PSU Bank index emerged as a top performer, surging 1.79%, with other gains observed in chemicals, realty, metal, financial services, and oil & gas stocks. [43] Major gainers included Bajaj Finance, Shriram Finance, ITC, NTPC, and Coal India. [14]
The tape
| Instrument | Last | Change |
|---|---|---|
| Nifty 50 | 22,483.80 | +38.25 (+0.17%) |
| Sensex | 72,041.28 | +131.58 (+0.18%) |
| Bank Nifty | 55,192.65 | +1.4% (intraday high) |
| USD/INR | 96.0926 | -0.166 (-0.17%) |
| India 10Y Yield | 7.212% | N/A |
| India VIX | 14.46 | +0.97 (+7.19%) |
IPOs & the primary market
India's primary market saw mixed fortunes on Monday, October 5, as several new issues debuted. AceVector, the parent company of Snapdeal, listed at a discount of over 11%, opening at ₹28.30 on the BSE against its IPO price of ₹32. [9, 27, 40] In contrast, Orient Cables India surged significantly, listing at ₹450 on the NSE, a 65.44% premium over its ₹272 issue price. [27] German Green Steel & Power also saw a modest 3% premium on listing, while Runwal Enterprises had a flat debut. [27] Meanwhile, several IPOs are closing today, October 5, including mainboard issues Vishal Nirmiti and Nityas Gems and Jewellery, and SME issues like Shree TNB Polymers, EverestIMS Technologies, and Omara Ventures India. [10, 22, 29] Looking ahead, R.K.Fashion Accessories is set to open its subscription from October 5-7, [10, 24] and digital services giant Jio Platforms is preparing for a public listing by late October, aiming to raise approximately $3.8 billion. [33, 34]
Valuation watch — India & global
The Nifty 50's Price-to-Earnings (P/E) ratio stood at 19.19 as of October 1, 2026, or 19.20 for the month of October. [5, 8, 18] This is below its 10-year median of 23.27, suggesting that Indian large-cap equities are considered mildly undervalued or slightly cheap based on historical benchmarks. [5, 8] This valuation context is important for investors assessing market levels, especially considering the shift to consolidated earnings for P/E calculation since April 2021. The current market environment continues to be shaped by global factors, with discussions around valuation and potential froth often influenced by international monetary policy expectations.
What we'll be watching
- The Reserve Bank of India's Monetary Policy Committee (MPC) meeting concludes on October 7, with the policy decision announcement expected the same day. [4, 19]
- India's Q2 FY27 IT earnings season is set to commence on October 8, with Tata Consultancy Services (TCS) scheduled to announce its results. [14, 37]
- Several SME IPOs, including Paramount Syntex and TNA Solutions, are slated to close for subscription on October 6. [10, 24]
- Jio Platforms is anticipated to file its final IPO papers with SEBI in the week of October 12, targeting a public listing by the end of October. [34]
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