Benchmark Indian equities ended higher on Monday, snapping a four-session losing streak as post-earnings gains in key index constituents, including Dr Reddy’s Laboratories, JSW Steel and Kotak Mahindra Bank, lifted sentiment. However, concerns over inflation and elevated crude oil prices capped the advance, while investors awaited the US Federal Reserve’s policy decision on Wednesday, with the central bank widely expected to hold interest rates steady.

The Nifty50 rose 0.68% to 22,753.20, while the Sensex gained 0.66% to 73,606.75. Both benchmarks recovered from intraday losses of around 0.9%. Fifteen of the 16 major sectors ended higher. The Nifty Metal and Pharma indices led sectoral gains, rising nearly 2% each, while Media and Consumer Durables were among the biggest laggards.

Broader markets also recovered from early weakness, with the Nifty MidCap 100 rising 1.19% and the Nifty SmallCap 100 gaining 1.38%. Thirty-seven of the Nifty 50 constituents ended in positive territory. Dr Reddy’s, JSW Steel and Adani Ports were among the top gainers, while Shriram Finance, Tata Consumer Products, Bajaj Finance and HDFC Life were among the biggest losers.

The rupee weakened for the third consecutive session as importers stepped up dollar purchases, while elevated oil prices and foreign outflows weighed on the currency. It closed at 95.1850 per US dollar, down 0.3% on the day, extending its three-session decline to about 0.8%. Brent crude traded around $115 per barrel in Asian hours, raising concerns over India's import bill and inflation.

Indian government bond yields erased early gains as elevated overseas yields and paying interest in overnight indexed swaps weighed on sentiment ahead of the Federal Reserve’s decision. The 10-year benchmark yield ended at 7.4826%, up from 7.4537% in early trade, compared with Friday’s close of 7.4740%.

Top Movers of the Day

Dr. Reddy's Laboratories surged 6.62% to close at ₹1,310.90, leading the visible gainers list for the day. The shares rose on a stronger-than-expected margin in the July-September quarter, along with upgrades from Jefferies and JP Morgan.

JSW Steel advanced 6.28% to settle at ₹1,260.00, finding significant buying interest throughout the session. The steel major saw strong July-September quarter results, with consolidated profit after tax jumping to ₹52.79 billion.

BSE climbed 3.97% to end at ₹3,359, continuing to outperform the broader indices. The exchange operator's stock has been rallying following upgrades from brokerages citing strong volume growth and institutional participation.

Kotak Mahindra Bank gained 2.38% to reach ₹440.75, emerging as one of the few bright spots in the financial sector. The private lender saw selective accumulation as investors sought stability after strong July-September quarter results and multiple target price upgrades from major brokerages.

Adani Ports and Special Economic Zone rose 2.92% to ₹1,752.50, showing resilience in the infrastructure space. Steady domestic buying helped the stock maintain positive momentum despite overarching pressures from rising global oil prices.

Shriram Finance plummeted 4.62% to close at ₹825. The non-banking financial company faced aggressive profit-booking and unwinding of long positions after the company cut its full-year growth outlook, flagging rural stress.

Tata Consumer Products dropped 2.84% to settle at ₹936.50 as the fast-moving consumer goods sector faced sustained selling pressure. Investors continued to trim exposure to defensive staples, shifting capital away from the broader FMCG space.

HDFC Life Insurance fell 0.9% to ₹519, declining for the fifth consecutive session  tracking negative sentiment across the broader life insurance sector. The stock was dragged lower by localised institutional selling and broader market caution.

Bajaj Financedeclined 1.10% to ₹918.70, joining other major financial services firms in the red. Rising global macroeconomic uncertainties and elevated crude prices prompted investors to reduce their holdings in rate-sensitive lending counters.

Futures & Options
The Nifty October 2026 futures contract closed at 22,774.80, a premium of 21.60 points to the Nifty 50 cash market close of 22,753.20. The benchmark index advanced 153.20 points, or 0.68%, on Monday.

India VIX, a gauge of expected near-term market volatility, rose 1.73% to 17.15. Infosys, HDFC Bank and Reliance Industries were the most-traded individual stock futures contracts on the NSE. The October 2026 F&O contracts expire on 27 October.

Bonds
Indian government bond yields edged higher on Monday as elevated crude oil prices and unfavourable global cues weighed on sentiment. Trading volumes remained muted amid lack of fresh domestic triggers and caution over the direction of yields ahead of the US Federal Reserve’s policy decision this week.

The benchmark 6.94%, 2036 bond yield ended at 7.4826%, compared with Friday’s close of 7.4740%. Brent crude traded above $115 per barrel, while the 10-year US Treasury yield edged up to 4.99%.

Traders are awaiting the Fed’s rate decision for further direction. Markets have almost fully priced in a pause in rate hikes at this meeting, while around 76% of traders expect a further 25-basis-point hike in December.

Forex
The Indian rupee weakened for the third consecutive session on Monday as importers stepped up dollar purchases, while elevated oil prices and foreign fund outflows weighed on the currency. The rupee opened little changed against the US dollar before closing at 95.1850, down 0.3% on the day. It has lost about 0.8% over the past three sessions.

Brent crude rose for the third consecutive week last week, gaining around 13% amid concerns over supply disruptions following Houthi attacks on Saudi Arabia. The contract traded near $115 per barrel in Asian hours on Monday. Higher oil prices could widen India's import bill, add to inflationary pressures and weigh on sentiment towards the rupee. They may also prompt companies to increase currency hedging and make foreign investors more cautious about Indian assets.

Crypto
The cryptocurrency market came under renewed pressure on Monday amid a wider sell-off in risk assets and reported institutional outflows. Bitcoin traded between $79,600 and $80,400, its lowest level in more than a month, after US spot Bitcoin ETFs recorded $772.4 million in outflows late last week. Rising oil prices and inflation concerns, anxiety over technology companies’ artificial intelligence spending and cautious positioning ahead of the Federal Reserve’s policy decision added to the pressure.

Ethereum traded between $2,300 and $2,327 after breaking below the $2,300 support level. The token continued to underperform Bitcoin, with sentiment weighed by reported outflows from US spot Ether ETFs and the postponement of the Hoodi testnet upgrade.

US Stock Futures
US stock futures rose early Monday as investors looked ahead to a series of central bank interest rate decisions this week. S&P 500 futures gained 0.3%, Dow Jones Industrial Average futures rose 266 points, or 0.51%, while Nasdaq-100 futures advanced 0.22%.

The US Federal Reserve is scheduled to announce its rate decision on Wednesday, followed by the European Central Bank on Thursday and the Bank of Japan on Friday.

US Treasury Notes
US Treasury yields were mixed but relatively steady on Monday, with the 10-year note yield holding just below the 5% threshold at 4.99%. Trading volumes remained muted as investors positioned ahead of the Federal Reserve’s monetary policy decision on Wednesday.

Markets have priced in a 90% probability that the Fed will keep interest rates unchanged. Attention is also on third-quarter GDP figures and September PCE inflation data due later this week. Persistent inflation continues to put pressure on longer-dated yields, while safe-haven demand amid a broader global technology sell-off has helped keep yields below recent multi-decade highs.

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