The BSE Sensex surged 582.95 points (0.72%) to close at 81,790.12, while the NSE Nifty50 advanced 183.4 points (0.74%) to settle at 25,077.
Broader indices also mirrored the upbeat mood — the Nifty Midcap 100 gained 0.89%, and the Nifty Smallcap 100 inched up 0.28%, signalling healthy participation beyond large caps.
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Impact on the stock market
Sector-wise performance
On the sectoral front, IT stocks led the rally, with the Nifty IT index jumping 2.28%, followed by Private Bank, Financial Services, and Healthcare indices. The buzz around AI adoption and pre-earnings optimism for Q2FY26 kept tech counters in demand.
Meanwhile, Metal, FMCG, and Media stocks faced selling pressure, slipping up to 1%. The Nifty Metal index, which had been riding a four-day rally, finally cooled off on profit booking and stock-specific concerns.
| Sector/Index | Performance |
| IT & BPM sector | 0.74% |
| Healthcare sector | 1.27% |
| Oil & Gas sector | 0.21% |
| Real estate sector | 1.10% |
| PSU Bank in India | -0.37% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Tata Motors | 718.35 | 5.61 |
| Shriram Finance | 648.70 | 5.29 |
| Kotak Mahindra | 2,063.30 | 3.54 |
| Adani Enterpris | 2,591.40 | 3.41 |
| Trent | 4,832.00 | 3.30 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| UltraTechCement | 12,084.00 | -1.13 |
| Bajaj Finance | 987.70 | -1.12 |
| SBI | 864.10 | -0.96 |
| Tata Steel | 167.51 | -0.75 |
| Asian Paints | 2,335.80 | -0.60 |
Market aftermath: Impact on stocks
Tata Steel sinks after ₹2,400 crore demand notice
The metal pack turned sour after Tata Steel reported a hefty ₹2,410.89 crore demand from the Department of Mines, Jajpur, Odisha, related to an alleged shortfall in chrome ore dispatches from its Sukinda chromite block.
Following the announcement, Tata Steel shares tumbled 2.03% to ₹169.85, making it the top Nifty laggard. The company said it would contest the notice, asserting the demand was “not justified.”
The news dragged down the entire metal space, with Hindustan Copper, SAIL, NALCO, Jindal Steel, and Hindalco Industries slipping as traders booked profits after last week’s rally. The Nifty Metal index ended more than 1% lower, snapping its four-day winning run.
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Nykaa hits record high on upbeat Q2 update
It was a glowing day for Nykaa, whose shares soared over 6% to hit a 52-week high of ₹255.17, following a strong Q2 FY26 business update.
The company’s parent, FSN E-Commerce Ventures, announced that consolidated Gross Merchandise Value (GMV) for the July–August quarter grew into the “thirties,” up from the “mid-twenties” seen earlier.
Nykaa credited the surge to strong traction in its Fashion and Beauty verticals, supported by the early onset of the festive season and recent GST reforms, which are expected to boost consumer spending.
The Beauty division reported mid-twenties revenue growth, driven by brands like Dot & Key, Kay Beauty, and Nykaa Cosmetics, marking 10 consecutive quarters of expansion.
Meanwhile, the Fashion segment recorded higher mid-twenties NSV growth, backed by robust customer acquisition and expanding brand assortments. With shares already up 48% in the last six months and 54% in 2025, Nykaa remains a star performer in the consumer tech space — though its P/E ratio above 817 keeps valuations on the edge.
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IT sector in focus ahead of Q2FY26 earnings
Despite a 2.3% jump in the Nifty IT index, brokerages expect a muted quarter for the IT sector overall. Revenue growth is projected to stay between -0.9% and 0.6% for Tier-I firms and -1.3% to 2.4% for Tier-II players in constant currency terms.
Analysts cite sluggish client spending, ongoing macro uncertainty, and rising US visa costs as key drags. Margins are expected to remain under pressure due to wage hikes and AI-related investments.
However, the buzz around Generative AI remains a double-edged sword — while it’s fueling new deals and digital transformation projects, AI-led productivity gains are also starting to compress pricing in contract renewals.
Brokerages like Nomura and Motilal Oswal predict that pricing deflation could trim FY27 growth by up to 450 basis points, even as long-term prospects stay bright.
The market now awaits management commentary from top players like TCS, Infosys, and Wipro to gauge the next growth wave — especially on AI monetisation, visa fee hikes, and potential layoffs.
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Crude oil climbs after OPEC+ surprises with smaller production hike
In global commodities, crude oil prices advanced on Monday after OPEC+ announced a smaller-than-expected production hike for November.
- December Brent futures: $65.52, up 1.53%
- November WTI futures: $61.84, up 1.58%
- On MCX, October crude futures rose 1.08% to ₹5,498, and November futures gained 0.96% to ₹5,479
The oil cartel revealed it would raise production by 137,000 barrels per day, far below market expectations of 500,000 barrels per day. The decision reflects OPEC+’s cautious approach to maintaining price stability amid healthy demand and tight inventories.
The group reaffirmed its commitment to monthly reviews and flexibility in adjusting production to market conditions. Meanwhile, natural gas prices on MCX climbed 1.48% to ₹302.70, while agri commodities like jeera and dhaniya traded lower by 2.01% and 0.55%, respectively.
Conclusion
Monday’s market action painted a picture of contrasting fortunes. IT and banking stocks powered the benchmarks higher, offsetting weakness in metals and FMCG. Tata Steel’s tax notice rattled the metal sector, while Nykaa’s record rally highlighted the resilience of India’s consumption story.
With global oil prices firming and Q2 earnings around the corner, investors appear to be balancing optimism with caution. The road ahead for the markets will depend on how well corporates deliver in the upcoming quarter — and whether the festive season can keep the bulls charged through October.
For more stock market insights, check out the StockGro blog.
