Sensex surges 250 pts, Nifty extends gain to 3rd day led by banking stocks; all eyes on twin mega IPOs

Sensex, Nifty traded higher on strong buying in bank stocks.

Indian benchmark indices, Sensex and Nifty, extended their winning streak for the third straight session on October 6, supported by gains in financial stocks after healthy second-quarter business updates. The broader market also stayed firm as investor focus shifted to the two big IPOs opening this week — Tata Capital today and LG Electronics India tomorrow.

In early trade, the Sensex rose 264.55 points, or 0.33 percent, to 81,471.72, while the Nifty gained 76.40 points, or 0.31 percent, to 24,970.65. Market breadth was nearly balanced, with 1,777 shares advancing, 1,717 declining, and 170 remaining unchanged.

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The India VIX, which reflects near-term volatility, inched up around 3 percent, indicating some nervousness among investors. The lack of clarity between India and the US on economic alignment also kept participants cautious for now.

Attention is now turning to the second-quarter earnings season, as management commentary will guide expectations for the rest of the year. TCS will be the first to report results on October 9, keeping IT stocks in focus. The Nifty IT index climbed nearly 1 percent, led by TCS, Infosys, and HCL Tech.

Banking stocks also added strength to the Nifty’s advance, with Kotak Mahindra Bank and HDFC Bank leading gains after reporting healthy loan growth for the September quarter, prompting upbeat brokerage reactions.

Bernstein maintained an outperform rating on HDFC Bank, citing robust loan growth as a positive sign in an otherwise moderate growth environment. Nomura reiterated its buy call on the lender, saying it remains well-positioned to lead system credit growth through FY26. For Kotak Bank, Nomura retained a neutral stance but acknowledged the lender’s strong loan and deposit growth in its pre-quarterly update.

Ponmudi R, CEO of Enrich Money, said the Nifty 50 opened near a key resistance zone and once again struggled to cross the 25,000 mark, which continues to attract heavy Call option interest. On the downside, the 24,900–24,800 range remains strong support, with new Put positions keeping the index largely range-bound for now.

A sustained move above 25,000 could push the Nifty toward 25,150–25,350, while a dip below 24,750 might lead to short-term profit booking, he added.

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