- Summary
- The Sensex rose 472.77 points to close at 72,382.47 while the Nifty 50 settled 133.80 points higher at 22,555.75 on Monday, 5 October 2026, snapping a four-day losing streak as global equities advanced on reduced bets of faster rate hikes by the US Federal Reserve.
- Nifty FMCG and Media saw renewed buying while Pharma and Healthcare stayed under pressure, with BSE and ITC the top Nifty gainers and HCL Tech and Max Healthcare the major laggards.
- Banks led the stock-specific action, with AU Small Finance Bank, Bank of Baroda, YES Bank and Suryoday rising up to 5% on strong September quarter business updates, while ESDS Software hit its 5% lower circuit for a sixth straight session as its shareholder lock-in expired.
- Defence shares fell for a second day despite a strong order pipeline, and crude slipped on weak global cues, with domestic futures down 2.87% to ₹8,660.
The Sensex rose 472.77 points, or 0.66%, to close at 72,382.47, while the Nifty 50 ended 133.80 points, or 0.6%, higher at 22,555.75, the first green close of October.
The broader market joined the relief bounce. The Nifty MidCap 100 gained 0.67% and the Nifty SmallCap 100 advanced 0.47%, suggesting some halt in the selling pressure that defined the past two weeks.
Impact on the stock market
Sectoral gainers: Nifty FMCG witnessed renewed buying traction along with Nifty Media, with ITC’s place among the top Nifty gainers reflecting the FMCG recovery.
Sectoral losers: Nifty Pharma and Healthcare continued to remain under pressure, extending last week’s unwinding of the defensive trade, with Max Healthcare among the day’s major laggards.
| Sector/Index | Performance |
| IT & BPM sector | -0.01% |
| Healthcare sector | -1.00% |
| Oil & Gas sector | 0.34% |
| Real estate sector | 0.56% |
| PSU Bank in India | 0.97% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| ITC | 268.90 | 5.08 |
| TMPV | 288.65 | 3.31 |
| Shriram Finance | 971.40 | 2.79 |
| Bajaj Finance | 970.00 | 2.29 |
| Bharti Airtel | 1,779.90 | 2.23 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| HCL Tech | 1,201.90 | -3.31 |
| Max Healthcare | 917.00 | -2.55 |
| HDFC Bank | 704.80 | -2.27 |
| Apollo Hospital | 7,985.00 | -1.83 |
| Asian Paints | 2,366.00 | -1.70 |
Market aftermath: Impact on stocks
Bank Stocks: Up to 5% Gains as the September Quarter Updates Impress
Banks delivered Monday’s strongest stock-specific story after releasing provisional business updates for the September quarter, the early snapshots of loans and deposits that lenders publish ahead of full results. AU Small Finance Bank rose 4.5% intraday to ₹1,033.9 after reporting 27.9% year-on-year growth in gross advances to ₹1.5 lakh crore with deposits up 28.6% to ₹1.7 lakh crore, while Suryoday Small Finance Bank gained nearly 5% on advances growing 34.6% and deposits rising 35%. Bank of Baroda climbed almost 3% as its global business crossed ₹32.64 lakh crore, up 17.5%, with domestic advances growing 13.5%.
YES Bank rose 2.3% to a two-week high of ₹21.23, with advances growing 23.8% to ₹3.1 lakh crore, faster than its 19.5% deposit growth, and a current and savings account ratio of 30%, the share of low-cost deposits that supports a bank’s margins. The common thread across the updates is double-digit credit growth holding up despite the market turmoil, which matters because loan growth is the rawest indicator of economic activity. After the battering financials took from the insurance commission proposals, a set of updates showing the core lending business in good health was exactly the reassurance the sector needed.
ESDS Software: A Sixth Straight Lower Circuit as the Lock-In Ends
ESDS Software Solution hit its 5% lower circuit for the sixth consecutive session, and Monday carried an extra twist, since the company’s one-month shareholder lock-in period also expired. According to Nuvama, around 2.5 million shares, or 2.5% of the outstanding equity, became eligible for trading with the expiry. The important nuance is that eligibility does not mean those shares will be sold, only that they now can be, though in a stock already falling daily, the prospect of fresh supply adds to the pressure.
The round trip has been dramatic, with the stock listing on 4 September at a 76% premium to its ₹429 issue price and immediately doubling, before the exchanges progressively cut its circuit limit as volatility spiralled. The same circuit mechanism that locked buyers out on the way up is now locking sellers in on the way down, with six straight sessions at the floor meaning many holders simply cannot exit. For anyone tempted by newly listed momentum stocks, this remains the cautionary tale of the season.
Defence Stocks: A Second Day of Declines Despite a ₹13 Lakh Crore Pipeline
Defence shares extended their decline for a second session, with the Nifty India Defence index slipping 0.39% to 9,106.85, dragged by Bharat Electronics, MTAR Technologies, Data Patterns and Paras Defence, while Hindustan Aeronautics, Astra Microwave and Cyient DLM provided support. The weakness reads as profit booking in a crowded trade rather than a change in the story, because the order environment remains strong. The divergence within the index also shows investors rotating between defence names rather than exiting the theme.
Motilal Oswal’s latest sector preview makes the structural case, retaining Bharat Electronics as its top defence pick and noting that the defence ministry’s acquisition council has approved ₹1.62 lakh crore of proposals so far this financial year. Total approvals have reached ₹13 lakh crore since FY25, steadily expanding the addressable market for domestic defence manufacturers. With government capital spending on defence up 41% this year, the pipeline argument suggests the pullback is about price, not prospects.
Crude Oil: Domestic Futures Fall Nearly 3% on Weak Global Cues
Crude extended its softer tone on Monday, with domestic futures for October delivery falling ₹256, or 2.87%, to ₹8,660 per barrel on the MCX in a turnover of 12,220 lots. Analysts said participants offloaded holdings amid weak demand in the spot market. Globally, WTI traded 1.43% lower at $89.81 per barrel while Brent declined 0.82% to $101.41 in New York.
The decline fed directly into Monday’s equity rebound, since cooling crude supports the case against aggressive central bank tightening, the very fear that drove the four-day fall. With West Asian supply at its highest since the conflict began and the US rate-hike odds fading, the pressure that built through September is easing on two fronts at once. Brent holding around $100 rather than racing higher is, for now, enough to let Indian equities breathe.
Conclusion
Monday’s 473-point rebound ended the four-day slide and offered the first evidence that the selling pressure of the past two weeks may be exhausting itself, with the broader market rising alongside the benchmarks. The bank business updates were the session’s substance, showing credit growth of 13% to 35% across lenders and reminding investors that the economy underneath this correction is still expanding. ESDS stayed locked at its floor as a warning about momentum chasing, while the defence pullback looks like a pause in a theme backed by a ₹13 lakh crore approval pipeline. The week ahead brings the start of results season with TCS on 8 October, and with crude subdued and rate fears fading, earnings now get to decide whether this bounce becomes a bottom.
