On October 6, Indian stock markets closed higher with the Nifty 50 index gaining 220.35 points, or 0.98%, to finish at 22,776.10, according to livemint.com. The Sensex also advanced 685.34 points, or 0.95%, ending at 73,067.81. This marked the second consecutive session of gains for benchmark indices, supported by broad market participation and sectoral strength.
The rally was driven by a positive investor sentiment fueled by crude oil prices falling below the $100-a-barrel mark and strong buying in banking stocks and Reliance Industries, livemint.com reported. Market breadth was notably positive with 2,455 stocks advancing against 1,125 declining. Sector gains were led by Pharma, Oil & Gas, Private Banks, and FMCG, while technology counters remained under pressure.
The market's upward momentum came amid a sharp 7.9% decline in the India VIX, indicating reduced volatility. The decline in Brent crude oil prices helped ease inflation concerns, bolstering risk appetite. However, the rupee weakened by 27 paise to 96.56 per dollar, which remained a concern for investors. The market's performance aligns with global cues as US stock futures posted record highs, although Asian markets opened lower on October 7.
Investor focus has now shifted to the Reserve Bank of India's policy decision scheduled for October 7, which is expected to influence market direction. The GIFT Nifty indicated a likely flat opening, hovering near 22,780, as traders await the RBI announcement, according to livemint.com.