Dalal Street Sees Cheer Return: Second Straight Day of Gains, But the Real Test Is Tomorrow's RBI Decision
On Tuesday morning, the mood on Dalal Street looked quite different from last week. Last week, the market saw its longest losing streak in 25 years. Investors' portfolios were in the red and everyone's face showed tension. Today, 6 October 2026, the situation looked somewhat steadier. For the second day in a row, both the Sensex and the Nifty were seen trading in the green.
The question is: is this a real turning point or just a sigh of relief? To understand this, let's first look at the numbers.
Today's Market in Numbers
The BSE Sensex opened today at 72,508.05. By afternoon it was trading around 72,800, up about 417 points, or 0.58%. The NSE Nifty 50 started at 22,603.25 and, in the afternoon, rose 121 points (0.54%) to be seen at 22,677.65.
Bank Nifty also made a good comeback. It was trading about 0.56% higher at the 55,018.90 level. Banking shares play a big role in deciding the market's direction, so traders kept a special eye on the strength of this sector.
What Was Behind the Rally?
Oil gave relief. India imports a large part of its requirement, so every move in crude oil is felt in the market here. Brent crude was seen holding around $100 per barrel, and WTI came into the $89-90 range. After sharp swings, this pause in prices was a comfort for the market.
Green signal from the global market. In America, the S&P 500 and Nasdaq rose, led by tech shares. Its effect fell on Asian markets, and India was not untouched by it either.
DIIs held the front, short covering gave the push. During the fall of the past few days, domestic institutional investors (DIIs) were seen buying and gave the market support. On top of that, today was the weekly expiry of the Nifty. Traders who had placed selling bets at lower levels cut their deals, that is, short covering took place. This gave the rally more speed.
Everyone's eyes on RBI tomorrow. On 7 October, the Reserve Bank's Monetary Policy Committee (MPC) decision is due. In view of inflation, the market expects a 0.25% (25 bps) hike in the repo rate. The market has already largely priced this in, meaning the shock may not feel that big. What will really matter is what direction RBI signals for the future.
Who Shone, Who Faded?
The real story of today was Trent. The share of this Tata Group retail company jumped more than 11%. It is being said that the reason is the company's better quarterly update. Good buying was also seen in Kotak Mahindra Bank and Axis Bank. Reliance Industries helped pull the index up. In FMCG, Nestle India and ITC saw a slight gain.
On the other hand, pressure was seen on Maruti Suzuki. There was selling in Dixon Technologies too. According to analysts, a trend of weakness is going on in this share.
IPO Market: One Dull, One Explosive
Two new shares were listed today.
Shah Investor's Home share listed at ₹171, while the issue price was ₹167. That is, investors got only a modest premium of 2.4%.
The real fun was in SRIT India. Its issue price was ₹130 and it listed on NSE at ₹148. That is, a direct listing gain of 13.85%, which brought smiles to the faces of IPO investors.
Brokerage View: Don't Buy With Your Eyes Closed
The report of brokerage firm Axis Direct speaks of walking carefully on this recovery. According to the report, even though the market has been rising for two days, a broad-based rally may remain limited due to global uncertainties. The market is now in a 'selective phase'. This means that instead of betting on the whole market, focusing on companies with good quality and strong results is being considered better. The report calls this a period of stock-specific opportunities.
Source: Axis Direct report (published on ANI)
What Will Matter for the Market Ahead?
First, the RBI decision on 7 October. A repo rate hike is already expected, so the eyes will be on what RBI says about inflation and future policy. Second, the movement of crude oil. Brent staying around $100 or rising again can change the market's mood. Third, global signals. The trend of Wall Street will keep influencing the movement of Asia and India.
All in all, the two-day rally has certainly put some balm on the wounds. But looking at last week's fall, it would be hasty to take this as a firm turning point yet.
FAQ Text
Q1. Why did the stock market rise today?
Easing crude oil prices, gains in US markets, buying by domestic institutional investors (DIIs), short covering on the Nifty weekly expiry, and expectations ahead of the RBI policy supported the market.
Q2. When will the RBI monetary policy be announced?
The RBI's Monetary Policy Committee (MPC) decision is due on 7 October 2026. The market expects a 0.25% hike in the repo rate.
Q3. Which stock gained the most today?
Trent, a Tata Group company, jumped more than 11%.
Disclaimer: This article is for informational purposes only; do not treat it as investment advice. Investment in the stock market is subject to risks. Before taking any decision, consult your financial advisor.
