Sensex Jumps 685 Points, Nifty Reclaims 22,750 as Investors Await RBI Policy Signals

Sensex Jumps 685 Points, Nifty Reclaims 22,750 as Investors Await RBI Policy Signals

Mumbai, Oct 6: Indian equity markets staged a strong recovery on Tuesday, with the benchmark Sensex gaining nearly 700 points and the Nifty rising above the 22,750 mark as investors stepped up buying across pharmaceuticals, private banks and oil and gas stocks ahead of the Reserve Bank of India’s monetary policy decision.

The Sensex climbed 685.34 points, or 0.95 per cent, to close at 73,067.81, while the Nifty 50 advanced 220.35 points, or 0.98 per cent, to settle at 22,776.10.

The rebound came as investors looked beyond recent market volatility and positioned themselves ahead of the RBI’s policy announcement. Market participants are particularly watching the central bank’s stance on interest rates, liquidity and the broader economic outlook.

Nifty gains momentum

Technical indicators also pointed towards some improvement in market momentum. Analysts said a sustained move above the 22,800 level could strengthen the recovery and potentially take the Nifty towards 23,000.

On the downside, 22,600 is emerging as an immediate support level, followed by 22,500. The Relative Strength Index (RSI) has moved into the mid-30s, indicating that momentum is gradually improving, while the easing of the negative MACD histogram suggests that selling pressure may be losing some intensity.

Pharma, banking and oil stocks lead

Buying was visible across several heavyweight stocks, helping the benchmarks maintain their upward momentum through the session.

Among Nifty constituents, Trent, BSE and Kotak Mahindra Bank were among the strongest performers. Pharma and chemical stocks also attracted significant buying interest, with the Nifty Pharma index emerging as the best-performing sectoral index, followed by the Nifty Chemical index.

The broader market participated strongly in the recovery. The Nifty MidCap index rose 1.08 per cent, while the Nifty SmallCap index gained 1.56 per cent, indicating that investor interest extended beyond large-cap stocks.

The IT sector, however, moved in the opposite direction as investors booked some profits. The Nifty IT index was the biggest sectoral laggard during the session.

RBI policy in focus

With the RBI policy decision approaching, investors are likely to closely track signals on inflation, growth, liquidity and interest rates. The central bank’s assessment of domestic economic conditions could play an important role in determining the market’s next move.

The recent decline in crude oil prices has also offered some relief to Indian equities by easing concerns over imported inflation and corporate costs.

Overall, analysts described the near-term market outlook as cautiously constructive. The two-session recovery has improved sentiment, but global uncertainties, currency movements, crude prices and monetary-policy expectations remain key risks for investors.

For the market to extend Tuesday’s gains, sustained buying and a decisive move above the 22,800 resistance zone will be important. A failure to hold the recovery, meanwhile, could bring the 22,600-22,500 support range back into focus.