Sensex Rebounds 879 Points as IT Stocks Lead, Oil Eases

The Sensex rose 879.09 points, or 1.23 per cent, to close at 72,472.33 on Friday, 9 October 2026. The Nifty 50 gained 288.65 points, or 1.30 per cent, to settle at 22,520.45. Both benchmarks ended a two-day losing streak. Buying in information technology (IT) shares, lower crude oil prices and broad participation across sectors drove the recovery on Dalal Street.

The rebound recovered a large part of Thursday's fall, but not all of it. The Sensex closed at 72,472.33, still below the 73,000-odd level it held before the slide began. The two-day decline had been linked to a spike in oil prices and worries about further monetary tightening.

IT was the clear winner. TCS's September-quarter report showed profit of ₹13,884 crore and AI revenue above 3.1 billion dollars. Market participants said IT stocks gained on a strong start to the Q2 earnings season and rising confidence in AI-driven revenue. Investors read the numbers as a sign that large-cap IT companies can still grow during heavy AI spending.

Crude oil was the main outside driver. A market analyst said sentiment was helped by signs that any potential US military action against Iran is unlikely before the US mid-term elections. That eased geopolitical concerns and let crude moderate from its previous high.

For India, oil matters because the country imports most of its crude. Higher prices raise the import bill, put pressure on the rupee and feed inflation. Softer oil eased worries about inflation and corporate profits, and cooling bond yields also supported equities. Lower crude cut the earnings outlook of explorers and refiners, so oil and gas shares fell.

Global cues were mixed. Japan's Nikkei 225 ended marginally lower, while the Shanghai SSE Composite and Hong Kong's Hang Seng ended higher. South Korean markets were closed. European markets traded higher. Local factors such as the TCS results and the fall in crude did most of the work.

Short-term: Investors are likely to stay careful in the next session, according to analysts at one brokerage, with crude oil, bond yields and global equities setting the tone. The rupee's 16 paise gain to 96.72 against the US dollar and cooler bond yields gave markets some relief. Oil and gas shares, including energy companies hit by lower crude, face pressure while crude stays below 103 dollars a barrel. Torrent Power shares also fell to a 31-month low during the session.

Long-term: The rally shows how strongly Indian benchmarks respond to crude prices, bond yields and large-cap IT earnings. Analysts said a slowdown in foreign fund outflows will be vital for the recovery to continue. Foreign investors have been net sellers in recent weeks. Corporate results over the coming weeks will also test the IT rally, and the Sensex remains below the levels it held before Thursday's fall began.

Who is affected: IT companies and their shareholders gained most, with the Nifty IT index up 3.02 per cent. FMCG, healthcare, auto and banking stocks also rose, so the gains were broad-based rather than driven by one heavyweight. Midcap investors did better than smallcap holders. Energy explorers and refiners lost ground as crude eased. Importers, consumers and the rupee benefit when oil prices cool, since India imports most of its crude and higher prices feed inflation.

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