Equity benchmark indices opened higher on October 5, 2026, as concerns over aggressive US rate hikes eased and oil prices fell.
The BSE Sensex opened at 72,340.95, gaining 431.25 points, or 0.60 per cent, from the previous close. The NSE Nifty 50 started at 22,532.40, up 110.45 points, or 0.49 per cent.
The rebound came after the benchmarks posted losses for eight consecutive weeks, falling around 8-9 per cent during the period. The prolonged correction also eroded investor wealth by around Rs 28 lakh crore.
The recovery was broad-based, with the Nifty Midcap 100 and Nifty Smallcap 100 also gaining nearly half a per cent at the open. The Nifty 500, which represents more than 92 per cent of the total free-float market capitalisation of NSE-listed companies, was up 0.45 per cent.
Why Is Stock Market Rising Today
Here are the reasons why the stock market is rising today.
Crude Oil Price Softens
Crude oil prices fell in the morning session as rising crude exports from West Asia and the planned release of oil stocks by Group of Seven nations added to global supply. However, concerns still linger over further damage to oil infrastructure in the region amid the Iran war.
In the morning session, Brent crude traded at $101.50 a barrel, down 0.70 per cent, while US West Texas Intermediate (WTI) crude was at $90 a barrel, down 1.12 per cent.
Further, according to Reuters, Saudi Arabia has unexpectedly cut its November official selling prices (OSPs) for crude shipped to Asia, with Arabian Light priced at $5 a barrel below the Oman/Dubai average.
The discount is the widest for Arabian Light since June 2020, the report said.
The cut comes as West Asian oil flows recover and Saudi Arabia seeks to protect its market share. It had little immediate impact on Brent and WTI, which were driven mainly by West Asian supply, geopolitical risks and the planned release of emergency oil stocks.
US Fed Rate Hike Bets Ease
Investors have sharply reduced bets on an aggressive Federal Reserve tightening cycle after weaker-than-expected US jobs and inflation data.
US job growth slowed more than expected in September, while payrolls for the previous two months were revised sharply lower, reducing expectations of another Fed rate hike this month.
The Fed’s preferred core Personal Consumption Expenditures (PCE) inflation gauge rose 3 per cent year-on-year in August, below the 3.30 per cent consensus estimate. Last week, New York Fed President John Williams also said there was “no need for urgency” on further hikes, triggering a sharp repricing.
Markets now see a 17.7 per cent chance of a rate hike at the Fed’s October 28 meeting, down from 71 per cent a week earlier, according to the CME FedWatch tool.
This is a developing story...
