Sensex spurts 624 pts; Nifty jumps above 25,950 mark; VIX jumps 9.64%

The key equity indices traded with significant gains in the mid-morning trade, rebounding after Friday?s pause in a six-session winning streak, as softer-than-expected U.S. inflation data boosted expectations of two more rate cuts in 2025.

The Nifty traded above the 25,950 mark. Oil & Gas shares extended gains for second consecutive trading session.

At 11:29 ST, the barometer index, the S&P BSE Sensex, rallied 623.93 points or 0.74% to 84,835.81. The Nifty 50 index added 182.20 points or 0.70% to 25,977.65.

In the broader market, the S&P BSE Mid-Cap index rose 0.63% and the S&P BSE Small-Cap index added 0.38%.

The market breadth was positive. On the BSE, 2,121 shares rose and 1,842 shares fell. A total of 241 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, was jumped 9.64% to 12.71.

Economy:

India?s foreign exchange reserves rose by $4.496 billion to $702.28 billion for the week ending 17 October, mainly driven by an increase in the value of gold reserves, the Reserve Bank of India (RBI) said on Friday.

Foreign currency assets (FCA), the largest part of the reserves, fell by $1.692 billion to $570.411 billion.

Meanwhile, the value of gold reserves rose sharply by $6.181 billion to $108.546 billion during the week. Special Drawing Rights (SDRs) also saw a slight increase of $38 million, reaching $18.722 billion.

India?s reserve position with the International Monetary Fund (IMF) fell by $30 million to $4.602 billion in the reporting week, according to RBI data.

Buzzing Index:

The Nifty Oil & Gas index added 1.30% to 11,744.95. The index rose 1.23% in the two consecutive trading session.

Aegis Logistics (up 2.86%), Hindustan Petroleum Corporation (up 2.49%), Bharat Petroleum Corporation (up 2.41%), Indian Oil Corporation (up 2.27%) and Reliance Industries (up 2.09%) Indraprastha Gas (up 1.29%), Oil India (up 0.81%), GAIL (India) (up 0.02%) added.

On the other hand, Mahanagar Gas (down 0.97%), Gujarat State Petronet (down 0.78%) and Oil & Natural Gas Corpn (down 0.69%) moved lower.

Stocks in Spotlight:

Desco Infratech surged 3.92% after the company announced that it has received new orders from Viviana Power Tech worth Rs 6.49 crore and Torrent Power worth Rs 14.45 lakh.

Poonawalla Fincorp rose 4.03% after the company announced the rollout of five new AI-powered systems across HR, governance, and compliance functions.

NCC rose 1.76% after the company announced that it has received a letter of acceptance (LoA) worth Rs 6,828.94 crore from Central Coalfields for a major mining project in Jharkhand.

Global Markets:

Asian markets traded higher on Monday as signs of easing trade tensions between China and the U.S. buoyed investor sentiment, in a strong start to a week dominated by central bank meetings and megacap earnings.

Japan?s Nikkei 225 surged over 2%, crossing the 50,000 mark for the first time.

Investors cheered progress in U.S.-China trade talks and strong momentum from Wall Street. Japanese Prime Minister Sanae Takaichi is scheduled to meet U.S. President Donald Trump during his visit to Japan this week.

The rally followed reports that top U.S. and Chinese trade negotiators had agreed on a framework for several disputed issues, paving the way for Trump and Chinese President Xi Jinping to sign off on the terms.

U.S. Treasury Secretary Scott Bessent reportedly said that Trump?s proposed 100% tariffs on Chinese imports are ?effectively off the table.? He added that China is expected to make significant soybean purchases and delay broad rare earth export restrictions, while the U.S. will maintain existing export controls.

On Wall Street, all three major averages closed at record highs on Friday as cooling inflation data raised hopes that the Federal Reserve could continue its rate-cutting path. The Dow Jones Industrial Average rose 472.51 points (1.01%) to 47,207.12, the S&P 500 gained 0.79% to 6,791.69, and the Nasdaq Composite added 1.15% to 23,204.87.

The U.S. consumer price index (CPI) rose 0.3% in September, pushing the annual inflation rate to 3%, a 0.1 percentage point increase from August. Core CPI, excluding food and energy, rose 0.2% for the month and 3% annually, compared with 0.3% monthly gains in July and August.

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