Indian markets open higher as Sensex gains 413 points, Nifty rises 110 points ahead of RBI policy

Indian equity markets opened sharply higher on Monday, with the Sensex gaining more than 400 points and the Nifty 50 rising over 110 points as investors weighed global cues, crude oil prices and the Reserve Bank of India’s upcoming monetary policy decision.

The Nifty 50 opened at 22,532, up about 110 points, while the BSE Sensex began trading at 72,340, marking a gain of around 413 points.

The gains came after the benchmarks endured an eight-week losing streak, their longest in 25 years. Easing crude prices and reduced expectations of an immediate aggressive rate hike by the US Federal Reserve also supported sentiment.

Financial stocks lead early gains

HDFC Bank, Reliance Industries, Bajaj Finance, PC Jewellers, Punjab National Bank, Shriram Finance and ITC were among the stocks gaining during early trade.

Bajaj Finance was among the stronger performers, while HDFC Bank also advanced after the lender announced the appointment of Anup Bagchi as its new chief executive officer.

On the other hand, Avenue Supermarts, TVS Motor Company, Apollo Hospitals, Infosys and Max Healthcare were among the major early losers.

Broader market and sectoral movements remained mixed even as the benchmark indices recovered. The market is also tracking foreign investor flows, the rupee, global bond yields and developments in crude prices.

RBI policy decision in focus

The RBI’s six-member Monetary Policy Committee began its three-day meeting on Monday and is scheduled to announce its decision on Wednesday, October 7.

The central bank has kept the benchmark repo rate unchanged at 5.25 per cent. The rate was last changed in December 2025, and the August 2026 MPC meeting also left it unchanged while retaining a neutral policy stance.

Investors are now watching whether the RBI will raise the repo rate for the first time since February 2023 as inflationary pressures, higher crude prices and weakness in the rupee complicate the policy outlook.

An Economic Times poll found that a majority of economists expect a 25-basis-point increase to 5.50 per cent at the October meeting. Reuters also reported that around 60 per cent of economists surveyed expected a hike, with broadening inflation and robust economic growth strengthening the case for tighter policy.

Inflation and crude add pressure

India’s consumer price inflation rose to 4.82 per cent in August from 4.45 per cent in July, pointing to a broadening of price pressures.

The increase comes against a backdrop of elevated international crude prices, which have remained above $100 a barrel amid continuing tensions in West Asia. Higher oil prices can add to India’s import bill, put pressure on the rupee and feed into domestic inflation.

Strong El Niño conditions and below-normal October rainfall could also pose risks to Rabi agricultural output, potentially adding to food-price pressures.

Higher global bond yields and rising crude prices have narrowed the RBI’s room to keep interest rates unchanged. Analysts have therefore been watching whether the central bank will prioritise inflation control and currency stability over maintaining its current policy stance.

Global cues offer some relief

The positive opening also followed gains across several Asian markets and a stronger close on Wall Street after weaker-than-expected US jobs data reduced concerns about an immediate Federal Reserve rate increase.

Crude prices also eased from recent highs, offering some relief to oil-importing economies such as India. However, geopolitical tensions in the Middle East, global bond yields, foreign fund flows and movements in the rupee remain key risks for domestic equities.

The Indian market is therefore entering the week with investors balancing the relief from improving global cues against the possibility of tighter domestic monetary policy.