Sensex, Nifty extend gains to second day, up 1% this week as metals, PSU banks shine

Metals, PSU banks drive weekly gains

After spending most of the session in negative territory, benchmark indices Sensex and Nifty staged a recovery in the final hour of trade on October 4. Losses eased in FMCG and technology stocks, while metals and PSU banks extended gains. Both Sensex and Nifty ended the week higher by nearly one percent, marking their second consecutive day of gains.

At close, the Sensex rose 213 points, or 0.26 percent, to close at 81,196, while the Nifty gained 57 points, or 0.23 percent, to end at 24,894. Market breadth was positive with 2,516 stocks advancing, 1,366 declining, and 113 remaining unchanged.

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Metal stocks were the standout performers through the week, with the Nifty Metal index climbing 4 percent. Several factors supported the rally in metals — a weaker US dollar index, reports that the European Union may raise steel import tariffs to as high as fifty percent, improving demand prospects, and China’s decision to cut steel output.

Copper prices also continued their upward momentum globally. On the London Metal Exchange, three-month futures crossed 10,500 dollars per ton, rising more than 3 percent for the week and extending gains for the third straight session.

PSU bank stocks were another key driver, with the Nifty PSU Bank index advancing 2 percent during the week. The Reserve Bank of India’s decision to keep policy rates steady at five and a half 5.5 percent offered comfort to banks, preventing the risk of shrinking margins that could have arisen if deposit and lending rates had moved unevenly.

Broader participation was also visible as all sectors posted weekly gains. However, IT, Realty, Pharma, and FMCG stocks ended with only marginal advances.

According to analysts at ICICI Securities, Nifty has staged a solid rebound after eight straight sessions of decline. They expect the index to rise about 7 percent over the next month, although intermittent volatility cannot be ruled out. Strong support for the index is seen in the 24,400–24,200 range.

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