Sensex, Nifty open sharply higher on 5 Oct as PSU bank stocks lead gains
Synopsis
After eight straight weeks of losses, Indian equities finally caught a bid on 5 October — and the trigger came from the US, not home. Softer American jobs data cooled Fed rate-hike fever, lifting Asian markets and dragging the Sensex up 400-plus points. But with the RBI set to raise rates on Wednesday and FIIs still net sellers, the relief may be short-lived.
Key Takeaways
Sensex opened up over 400 points at 72,340.95 and Nifty rose more than 100 points to 22,532.40 on 5 October .
Nifty PSU Bank , Nifty Media , and Nifty Metal gained up to 1% , leading sectoral gains.
FIIs remained net sellers with a ₹9,484 crore outflow; DIIs bought ₹10,041 crore net in the previous session.
Brent crude eased nearly 1% to $101.27 a barrel , offering relief to import-sensitive sectors.
The RBI is widely expected to hike its policy rate by 25 basis points on Wednesday , with the move seen as priced in by markets.
This rally comes after eight consecutive weeks of market declines, with analysts flagging elevated US bond yields and FII selling as ongoing risks.
Indian equity benchmarks Sensex and Nifty staged a strong opening on Monday, 5 October, riding positive global cues after softer-than-expected US jobs data eased pressure on the Federal Reserve to deliver an immediate interest rate hike. The rally, led by PSU bank stocks, offered a tentative reprieve after eight consecutive weeks of market declines.
Opening Numbers
The Nifty50 opened at 22,532.40, up more than 100 points or 0.49%, while the BSE Sensex climbed over 400 points or 0.6% to 72,340.95 in early trade. Broad market sentiment turned clearly positive, with most sectoral indices trading in the green.
Sectors Leading the Charge
Nifty PSU Bank, Nifty Media, and Nifty Metal each gained up to 1%. Nifty Realty advanced 0.93%, while Nifty Chemicals, Nifty FMCG, and Nifty Oil & Gas gained between 0.8% and 0.85%. Nifty Private Bank and Nifty Consumer Durables were also trading higher. Nifty IT, Nifty Auto, and Nifty Pharma remained largely flat, while healthcare indices — Nifty 500 Healthcare and the Nifty Healthcare Index — dipped marginally by 0.07% and 0.12%, respectively.
Key Headwinds Remain
Market experts cautioned that the bounce should be viewed in context: elevated crude oil prices, high US bond yields, and continued selling by foreign institutional investors (FIIs) remain significant headwinds. In the previous session, FIIs were net sellers with a net outflow of ₹9,484 crore, though domestic institutional investors (DIIs) cushioned the impact with net purchases of ₹10,041 crore.
Notably, international benchmark Brent crude eased nearly 1% to $101.27 a barrel, providing some relief. Positive September automobile sales data also pointed to resilience in the domestic economy, according to market observers.
RBI Rate Decision in Focus
All eyes are now on the Reserve Bank of India (RBI), which is widely expected to raise its policy rate by 25 basis points on Wednesday. The move is reportedly already priced into the market. According to analysts, banks could benefit from the rate hike, as higher floating lending rates may support net interest margins. Valuations, particularly for large-cap stocks, have turned attractive after the prolonged sell-off, experts noted.
With the RBI decision imminent and global macro signals still mixed, markets are likely to remain sensitive to any fresh data or policy signals in the sessions ahead.
Point of View
However, have not gone away: FIIs pulled out nearly ₹9,500 crore in a single session, crude remains above $100, and the RBI is about to add another 25 basis points to an already-tightening rate environment. DII support is doing essential work, but it cannot indefinitely absorb the scale of foreign outflows if global risk appetite stays suppressed. The real test arrives Wednesday, when the RBI's tone on future policy — not just the quantum of this hike — will determine whether this is a genuine floor or a dead-cat bounce.
NationPress
5 Oct 2026
Frequently Asked Questions
Why did the Sensex and Nifty open higher on 5 October?
The Sensex and Nifty rose sharply on 5 October after softer-than-expected US jobs data reduced expectations of an immediate Federal Reserve rate hike, lifting Asian markets and boosting investor sentiment in India. PSU bank, realty, and metal stocks led the gains.
Which sectors performed best in early trade on 5 October?
Nifty PSU Bank, Nifty Media, and Nifty Metal each gained up to 1%, while Nifty Realty rose 0.93%. Nifty Chemicals, Nifty FMCG, and Nifty Oil and Gas gained between 0.8% and 0.85%. IT, Auto, and Pharma indices were broadly flat.
What is the RBI expected to announce on Wednesday?
The Reserve Bank of India is widely expected to raise its benchmark policy rate by 25 basis points on Wednesday, a move analysts say is already priced into the market. Banks are seen as potential beneficiaries, as higher lending rates may support their net interest margins.
What are the key risks facing Indian markets despite Monday's rally?
Key headwinds include elevated crude oil prices — with Brent near $101 a barrel — high US bond yields, and persistent FII selling. FIIs recorded a net outflow of ₹9,484 crore in the previous session, though DIIs partially offset this with ₹10,041 crore in net purchases.
How significant is Monday's market rebound after eight weeks of declines?
The rally offers a tentative reprieve after eight consecutive weeks of losses, during which large-cap valuations became increasingly attractive, according to market experts. Positive September automobile sales data also supported confidence in domestic economic resilience, though analysts caution that structural headwinds remain.
