Indian Stock Market Recap: Sensex And Nifty Snap Eight-Week Losing Streak As Oil Prices And RBI Rate Hike Keep Investors Cautious

The Indian stock market ended the week on 9 October 2026 on a positive note and finally broke an eight-week losing streak. The BSE Sensex gained 562.63 points, or 0.8%, for the week, while the NSE Nifty 50 rose 98.50 points, or 0.4%.

The recovery came after a volatile week that was shaped by rising crude oil prices, the Reserve Bank of India’s (RBI) interest rate hike and global economic uncertainty. The rebound offered some relief after the Nifty fell to its lowest level of 2026 on Thursday.

What Drove The Sensex And Nifty Recovery?

Brent crude reached a weekly high of $105.92 per barrel amid worries about the West Asia conflict, attacks on shipping in the Gulf and the Strait of Hormuz, and a possible disruption to US offshore production. Prices later retreated to $104.42 per barrel on Friday.

The RBI’s Monetary Policy Committee (MPC) raised the repo rate by 25 basis points to 5.5% on 7 October, marking its first rate hike since February 2023. It also changed its policy stance from neutral to calibrated tightening as inflation remained above the upper end of its 4% tolerance band from June.

Which Stocks And Sectors Led The Weekly Market?

Trent was the top Nifty 50 gainer, rising 13.1%, followed by BSE at 7.9%, Kotak Mahindra Bank at 5.4%, HDFC Life Insurance at 4.2% and ITC at 3.9%.

Adani Enterprises fell 6.5%, making it the biggest Nifty 50 loser. Max Healthcare Institute declined 6.1%, JSW Steel dropped 5.3%, Hindalco Industries lost 4.4%, and Bharat Electronics fell 3.9%.

Among sectors, Nifty FMCG rose 2.5%, and Nifty PSU Bank gained 2.4%. Nifty Bank advanced 1.5%, while Nifty IT increased 1%. Nifty Realty and Nifty Metal were among the weakest sectors, each declining 3.7%. Nifty Auto fell 2.1%, Nifty India Defence dropped 1.5%, and Nifty Pharma declined 1.3%.

The Nifty Smallcap 100 gained 0.5%, while the Nifty Midcap 100 ended flat. The India VIX fell 0.6% over the week.

Why Does The Indian Stock Market Outlook Remain Cautious?

Rising global bond yields have added to concerns about foreign capital leaving emerging markets for US Treasuries and the dollar. The US 10-year Treasury yield and broader monetary tightening remain important factors for investors assessing risk.

IT stocks attracted buying despite a US decision to suspend eight companies, including Infosys, TCS, Wipro and HCL Technologies, from the Permanent Labour Certification (PERM) programme.

TCS said the directive would not affect its workforce strategy or customer engagements in the United States. Its quarterly results also drew attention, with revenue growing at a mid-double-digit pace and net profit increasing, although margins remained under pressure.

US President Donald Trump said on Thursday that he would not order military strikes on Iran to resume before the US midterm elections on 3 November.

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