Sectoral Snapshot Today, October 1, 2026: IT Gains As Autos And Metals Slide

Mumbai, October 1: Indian equity markets saw broad-based selling on Thursday, with most sectoral indices ending lower as elevated crude oil prices, rising global bond yields and sustained foreign investor outflows weighed on risk appetite. The weakness was particularly pronounced in rate-sensitive and economically linked sectors, while IT stocks bucked the broader trend after softer-than-expected US inflation data eased concerns over another Federal Reserve rate hike. 

IT stocks buck trend 

The Nifty IT index was the standout performer, rising 2.2% and emerging as the only major sectoral index to post a weekly gain. Infosys, TCS and other technology stocks advanced as investors reassessed the outlook for US monetary policy following softer-than-expected August inflation data. 

The data reduced expectations of another Federal Reserve rate hike in October, supporting sentiment towards Indian IT companies, which derive a substantial portion of their revenue from the US market. The Nifty IT index gained 0.5% over the week. 

Auto, metal stocks under pressure 

Auto stocks were among the biggest losers of the session, with the sectoral index falling sharply as investors remained cautious about demand and the broader economic outlook. Bajaj Auto, Maruti Suzuki and Mahindra & Mahindra were among the biggest drags on the Nifty after weak September sales dampened sentiment. 

Metal stocks also came under pressure, while Infrastructure, Consumer Durables and Realty indices declined between 2% and 3%. Media and FMCG stocks also ended lower.  

On the metals sub index, Tata Steel fell 3.4% while Adani Enterprises declined 3%. Steel Authority of India Limited fell 3.8%. 

The broader sell-off extended to mid- and small-cap stocks, with the Nifty Midcap index falling 1.1% and the Smallcap index declining nearly 1%. 

Oil weighs on energy-sensitive sectors 

Energy and Oil & Gas stocks also declined by more than 1% as Brent crude reclaimed the $100-a-barrel mark. Earlier in the session, crude prices had eased towards $98 on hopes of progress in US-Iran ceasefire talks, but prices subsequently recovered. Refining to telecom giant Reliance Industries declined 1.6% while Adani Power fell 3.8%. Fuel retailers fell: Hindustan Petroleum Corporation Limited down 1.5%, Bharat Petroleum Corporation Limited down 0.9%, and Indian Oil Corporation down 2.7%. 

Higher crude prices are a concern for India given its dependence on imports to meet its oil requirements. A sustained rise in energy costs can increase inflationary pressure, widen the import bill and put pressure on margins for companies exposed to fuel and transportation costs. 

Financials mixed 

Financial stocks were relatively mixed, with PSU Bank stocks declining 1%, while private-sector lenders and insurers were among the stocks that provided some support to the benchmark indices. HDFC Bank, HDFC Life Insurance and SBI Life Insurance were among the Nifty gainers. 

The broader financial sector remained under pressure from the rise in domestic and global bond yields. The US 10-year Treasury yield rose to 5.34%, its highest level since 2002, while the yield on India’s 10-year benchmark bond climbed to a more than two-year high. Higher yields can weigh on equity valuations by raising the relative attractiveness of fixed-income assets and tightening financial conditions. 

Overall, 15 of the 16 major sectoral indices recorded weekly losses, underscoring the breadth of the market downturn. Auto stocks fell 5.9% over the week, while Consumer Durables declined 6.2%. IT was the exception, gaining 0.5% during the holiday-shortened week. 

Source

• NSE