Indian Markets Rally on Oil Drop and Fed Rate Hike Relief
Indian equity markets staged a strong recovery on Monday, with the Sensex and Nifty indices posting significant gains. The rally was fueled by a drop in global crude oil prices and reduced concerns about aggressive interest rate hikes by the U.S. Federal Reserve ahead of their October meeting.
The 30-share BSE Sensex jumped 413 points to 72,315 in early trading, while the 50-share NSE Nifty climbed 131.55 points to 22,554.20. By the end of the session, the Sensex surged to 72,594.57, a gain of 705.70 points, and the Nifty advanced to 22,605.10, up by 187.30 points.
The decline in Brent crude oil prices by 0.70% to $101.5 a barrel and softer-than-expected U.S. employment data eased inflation concerns and supported global risk appetite. Additionally, the appointment of Anup Bagchi as the new MD and CEO of HDFC Bank, effective October 27, 2026, boosted market confidence.
Leading gainers included Bajaj Finance, ITC, Bajaj Finserv, Larsen & Toubro, Axis Bank, and State Bank of India. However, foreign investors continued selling, offloading equities worth ₹9,484.22 crore on Thursday, October 1, 2026, which could limit further market gains. The rebound follows a period of declines, with the Sensex and Nifty both dropping on October 1, 2026.