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On October 5, 2026, Indian benchmark indices snapped a punishing four-session decline to break th...

Posted: 05 Oct 2026

On October 5, 2026, Indian benchmark indices snapped a punishing four-session decline to break their longest weekly losing streak in 25 years. Leading into the session, the market had endured eight consecutive weeks of losses driven by relentless foreign outflows, geopolitical tensions in West Asia, a record-low rupee, and Brent crude pushing toward $100 a barrel. The October 5 Market Rebound The market opened significantly higher in the early session and maintained positive momentum to close in the green: INDEXNASDAQ:.IXIC (Nifty 50): Advanced 0.60% (up 133.80 points) to settle at 22,555.75, successfully reclaiming the crucial 22,500 psychological level. INDEXDJX:.DJI (BSE Sensex): Climbed 0.66% (up 472.77 points) to finish at 72,382.47. Softer U.S. Macro Data: Weaker-than-expected U.S. employment data significantly eased fears of aggressive monetary tightening by the Federal Reserve, sparking a sudden revival in risk appetite across emerging markets. Cooling Oil Pressures: Brent crude futures receded slightly from recent highs, offering relief to major oil-importing nations like India and tempering domestic inflationary threats. Sectoral Support: While the broader market sentiment remained cautious, major gains were observed in FMCG, domestic energy, and banking heavyweights. Additionally, the IT sector (such as the Nifty IT index) found steady footing following positive global enterprise spending indicators. Near-Term Headwinds to Monitor Despite the relief rally, structural caution persists. The Indian Rupee continues to hover near historic lows of ₹96 per USD, and cumulative foreign institutional investor (FII) net short positions remain elevated. Investors are now positioning ahead of the upcoming Reserve Bank of India (RBI) Monetary Policy Committee decision later this week, where a potential 25 basis point rate hike is widely anticipated to combat residual sticky inflation.