Sectoral Snapshot Today, October 6, 2026: Banks, FMCG, Metals, Pharma Lead Rally; IT, Realty Drag

Mumbai, October 6: Most sectoral indices ended higher on Tuesday as Indian equities extended their rebound for a second consecutive session, with financial stocks leading the gains on the back of strong September-quarter business updates. The recovery was also supported by positive global cues and softer crude prices ahead of the Reserve Bank of India’s monetary policy decision. 

Banking stocks lead gains 

Banking and financial stocks were among the biggest contributors to the market’s advance, with investors responding positively to healthy growth in advances and deposits reported by major lenders in their September-quarter updates. 

The Nifty Bank, Private Bank and Financial Services indices gained as Kotak Mahindra Bank and Axis Bank emerged among the leading Nifty gainers. Kotak Mahindra Bank rose 3.8% after reporting a 24.7% year-on-year increase in net advances, while Axis Bank gained 2.1% after its gross advances and deposits grew 22.7% and 20.7%, respectively. 

The strength in banks comes after a prolonged period of weakness in the broader market, with investors now looking for signs that improving operating metrics can provide a floor to valuations. 

FMCG, consumer stocks outperform 

Consumer-facing sectors also attracted buying interest, with FMCG and consumer durable stocks gaining during the session. 

Godrej Consumer Products rose 4.2% after the company projected consolidated revenue growth in the high teens for the September quarter. Dabur India also gained 2.7%, with the firm expecting second quarter revenue and profit to grow in double digits. 

The sector received additional support from expectations of resilient domestic consumption, even as companies continue to contend with elevated input costs and uneven monsoon conditions. 

Metals, pharma, energy gain 

Metal, pharma, energy and oil & gas stocks were also among the sectors that ended higher. The buying came against a softer crude backdrop, with Brent prices falling nearly 2% in the previous session as Middle Eastern oil exports recovered and the G7 moved to increase supplies. Refining to telecom giant Reliance Industries climbed 2.7% amid optimism over a potential listing of Jio Platforms and after a broker increased its portfolio weightage on the stock. 

Lower crude prices are particularly supportive for India, a major oil importer, as they can ease pressure on corporate input costs, inflation and the country’s external balance. 

Trent surges, retail stocks in focus 

The broader consumer and retail theme received a major boost from Trent, which surged 12.6% and emerged as the best-performing Nifty stock. 

The Tata Group retailer reported a 23% year-on-year increase in standalone revenue from operations for the September quarter. The company also expanded its store network during the quarter, supporting expectations of continued growth in its retail business. 

The sharp move in Trent highlighted the stock-specific nature of the current market recovery, with investors rewarding companies that have delivered strong operating updates despite the broader market correction. 

IT, realty among laggards 

The Nifty IT index was among the notable sectoral laggards, while Realty and PSU Bank indices also ended lower. IT stocks remained under pressure despite the broader market recovery, with investors awaiting further cues from the US interest-rate outlook and upcoming earnings. 

The sectoral divergence suggests that investors remain selective, favouring domestic-facing sectors and companies with strong quarterly operating updates rather than adopting a uniform risk-on approach. 

RBI policy in focus 

The sectoral moves come a day ahead of the RBI’s policy decision, with markets widely expecting a 25-basis-point repo rate hike. The central bank last raised rates in February 2023. 

The policy outcome and accompanying guidance will be crucial for rate-sensitive sectors such as banks and real estate, while the RBI’s assessment of inflation, crude prices and the rupee will shape the outlook for the broader market. 

For now, strong corporate updates, softer oil prices and improved global sentiment have provided some relief after the market’s record eight-week losing streak. Whether that relief develops into a sustained sectoral recovery will depend largely on the RBI’s policy stance and the September-quarter earnings season. 

Source

• NSE