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Informist, Tuesday, Oct. 6, 2026

By Shruti Nair

MUMBAI – The domestic equity market is expected to move in a range after benchmark indices snapped their four-session losing streak to end higher on Monday. Favourable global cues such as limited movement in the crude oil futures and the early gains seen in Asian markets may help indices extend their gains from the previous session. Nevertheless, the broader sentiment in the market remains caustious as crude oil prices stay high and there is no visible end to the ongoing war in West Asia, according to analysts.

Monday, major US indices closed higher led by gains in technology and artificial intelligence-linked stocks. The technology-heavy Nasdaq Composite closed at a fresh all-time high of 27544.06 points. Several Asian markets also saw early gains on Tuesday. At 0806 IST, December futures of Brent crude oil were around $101 per barrel.

Further, foreign institutional investors Monday net sold nearly INR 47 billion shares, marking the seventh straight session of being net sellers. For this trend to change, the crude oil futures need to fall below $90 per barrel, according to a senior analyst at a top broking firm. 

On the domestic front, concern related to food inflation remained high given the rainfall defecit which will turn the focus now on the impact of this on crop yields, brokerage Normura underscored in a report. The brokerage expects food and beverage inflation to rise to 8.5-9.0% on year Oct-Nov from 5.7% in August before settling at 7.0% over the first half of the ongoing financial year. The brokerage also expects consumption demand to weaken once the ongoing festival season ends due to higher inflation and weaker agricultural growth. The brokerage expects the Reserve Bank of India to hike interest rates by 25 basis points each in October and December, instead of the sharp tightening expected by markets.

Monday, the Nifty 50 ended 0.6% higher at 22555.75 points and the BSE Sensex ended 0.7% higher at 72382.47 points. Stocks of several banks and fast-moving consumer goods companies were the top performers during the session following positive quarterly business updates. GIFT Nifty contracts suggest the Nifty 50 index may see some gains at the open. At 0740 IST, the GIFT Nifty October was largely unchanged at 22647.50 points and up nearly 100 points from the Nifty 50 close on Monday.

From a technical perspective, the Nifty 50 has shown signs of a relief recovery after testing the crucial long-term support zone around 22,400–22,600 points, according to Ajit Mishra, senior vice president of research at Religare Broking Ltd. Going ahead, the 22650–22800 zone is likely to act as the immediate resistance, followed by 23000–23200. Despite the recent recovery, the market remains oversold and the broader trend remains cautious, he said.

A sustained move beyond the 22800–23000 zone would be required for a meaningful improvement in the near-term structure, according to the analyst. "Until then, the current rebound should be approached selectively, with a preference for stock-specific opportunities rather than aggressive index-level exposure," according to the analyst. End

US$1 = INR 96.29

Edited by Akul Nishant Akhoury

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