Indian benchmark indices extended gains on October 6, with the Nifty 50 rising 167.45 points or 0.74% to trade at 22,723.20, surpassing the key resistance zone of 22,700. The Sensex climbed 573.45 points or 0.79% to 72,955.92 by midday, marking a second consecutive session of gains after an eight-week losing streak, according to thehindubusinessline.com.
The recovery was driven by heavy buying in Reliance Industries and strong performances from stocks like Trent, which surged 11% to ₹2,863.90, and Kotak Mahindra Bank, which rose nearly 4% to ₹432.60. Market breadth favored advances with 2,637 stocks rising against 1,500 declining on the BSE. The India VIX index dropped nearly 5%, easing volatility concerns and supporting the rally, thehindubusinessline.com reported.
This rebound follows a prolonged selloff that extended to eight consecutive weeks, the longest in 25 years. The gains were supported by easing crude oil prices, which steadied near $100 a barrel for Brent crude, and positive domestic factors including healthy second-quarter business updates and leadership changes at HDFC Bank. Accenture's strong fourth-quarter results also boosted sentiment in the IT sector, according to livemint.com.
The market's next major event will be the close of the October futures and options expiry session, which typically influences short-term trading strategies. The Nifty's breach of the 22,700 resistance level on October 6 signals renewed investor confidence after weeks of decline, with 128 stocks hitting 52-week highs on the BSE during the session, thehindubusinessline.com noted.