Sectoral Snapshot Today, October 26, 2026: Metal, Pharma, Oil & Gas Stocks Rally; JSW Steel, Dr Reddy’s Lead Gains

Mumbai, October 26: Metal, pharmaceutical and oil and gas stocks led a broad-based recovery in the Indian equity market on Monday, helping benchmark indices Sensex and Nifty snap a four-session losing streak. The Nifty Metal index surged 2.2%, while the Nifty Pharma index rose 1.8% and the Nifty Oil and Gas index gained 1.4%, as investors responded to strong September-quarter earnings from key companies. Fifteen of the 16 major sectoral indices ended higher, while the Nifty Midcap and Smallcap indices advanced 1.2% and 1.4%, respectively. However, elevated crude oil prices and uncertainty ahead of the US Federal Reserve’s policy decision continued to temper sentiment. 

JSW Steel, Tata Steel, Hindalco lift metal stocks 

The Nifty Metal index rose 2.2% on Monday after losing 5.4% over the previous four sessions. JSW Steel led the recovery, climbing 6.3% after reporting a threefold jump in September-quarter profit, supported by record sales volumes and improved capacity utilisation. 

The gains in JSW Steel helped lift sentiment across the metal sector, which had faced selling pressure in recent sessions. Investors tracked quarterly earnings and operating performance for signs of resilience amid volatile global market conditions. Tata Steel rose 1.3% while Hindalco Industries advanced 1.8%. 

The rebound in metal stocks was among the strongest sectoral moves of the session. 

Dr Reddy’s Laboratories leads pharma rally 

The Nifty Pharma index rose 1.8%, with Dr Reddy’s Laboratories surging 6.6% after its quarterly earnings exceeded market expectations. Strong domestic demand helped cushion weakness in the drugmaker’s key US market. 

The gains in Dr Reddy’s supported the broader healthcare and pharmaceutical pack, with investors focusing on earnings performance and demand trends as the September-quarter results season progresses. Max Healthcare was also among the prominent Nifty 50 gainers, advancing 2.4%, according to the closing data. 

Oil and gas stocks recover; crude remains a concern 

The Nifty Oil and Gas index gained 1.4%, recovering after declining 2.1% over the previous five sessions. The sector’s advance came even as Brent crude traded around $115 a barrel, keeping concerns over inflation and India’s energy import bill in focus. Refining giant Reliance Industries rose 1% while fuel retailer Bharat Petroleum Corporation advanced 3% as brokers cheered results despite profit decline. Mangalore Refinery and Petrochemicals Ltd surged 12.5% after a brokerage retained its ‘Buy’ rating following strong September-quarter earnings. 

Higher crude prices can raise input costs for oil-importing sectors and complicate the inflation outlook. Investors remained watchful of geopolitical developments in the Middle East and the potential impact on global energy supplies. 

BSE, Kotak Mahindra Bank gain; Shriram Finance falls 

Outside the major sectoral leaders, BSE Ltd advanced around 4% after a broker upgraded the stock to ‘Buy’ from ‘Neutral’, citing potential benefits from a partial reversal of the closing auction session mechanism. 

Kotak Mahindra Bank gained 2.4% after reporting better-than-expected quarterly profit, supported by robust loan demand. In contrast, Shriram Finance fell 4.6% after lowering its annual loan-growth forecast and flagging higher credit costs. 

Fed decision, earnings in focus 

Investors will track the US Federal Reserve’s policy decision on Wednesday, with the central bank widely expected to hold interest rates steady. Elevated crude prices and the outlook for US rates remain important external variables for Indian equities, particularly given their implications for inflation, the rupee and foreign investment flows. 

The domestic September-quarter earnings season will also remain in focus as investors assess corporate results, management commentary and forward guidance for signs of earnings resilience. 

Source

• NSE