Markets claw back from morning lows; Dr. Reddy’s surges 7%, crude eases

Sensex rose 320 points and Nifty gained 99 points as pharma, metal and realty stocks rallied. Dr. Reddy’s jumped 7%, while crude oil prices fell. | Photo Credit: iStockphoto

Equity benchmarks staged a sharp intraday recovery on Monday, October 26, 2026, reversing early losses to trade firmly in positive territory by afternoon. The Sensex, which had opened at 72,990.04 against a previous close of 73,123.83 and dropped to 72,650.62 at the open, recovered to 73,443.56, a gain of 319.73 points or 0.44 per cent, by 2.31 pm. The Nifty 50, which had opened at 22,524.40 and slipped to 22,438.70 in early trade, turned positive to reach 22,698.85, up 98.85 points or 0.44 per cent, at the same time.

Fresh buying, short covering lift markets

The turnaround was driven by fresh buying and short covering in pharmaceuticals, metals, realty, private-sector banking and oil and gas. “Indian equity benchmarks recovered from their intraday lows after a cautious opening, as fresh buying and short covering in select heavyweights supported a recovery,” said Ponmudi R, CEO of Enrich Money. Broader markets also participated, with the Nifty Midcap 100 gaining 0.42 per cent and the Nifty Smallcap 100 rising 0.59 per cent, snapping back from last week’s steep declines of 5.6 per cent and over 7 per cent, respectively.

Dr. Reddy’s leads gainers; capital markets shine

Dr. Reddy’s Laboratories led Nifty 50 gainers with a jump of 7.08 per cent to ₹1,316.60, touching an intraday high of ₹1,318.00. JSW Steel rose 4.27 per cent to ₹1,236.10, while BSE advanced 4.22 per cent to ₹3,367.00. Max Healthcare gained 2.85 per cent to ₹838.25, and Eternal added 2.38 per cent to ₹324.95. Among sectoral indices, Nifty Capital Markets emerged as the best-performing sector. On the BSE, 2,324 stocks advanced against 2,023 declines, with 52 stocks hitting 52-week highs and 492 touching 52-week lows.

On the losing side, Shriram Finance remained the worst performer on the Nifty 50, falling 4.47 per cent to ₹826.35. Tata Consumer Products shed 3.64 per cent to ₹928.85. HDFC Life declined 1.31 per cent to ₹516.90, Bajaj Finance slipped 1.09 per cent to ₹918.85, and Nestle India edged lower by 0.86 per cent to ₹1,164.90. PSU banks remained the worst-performing sectoral index.

Nifty support at 22,380–22,400; resistance near 22,710

On the options front, meaningful call writing was observed at the 22,600 and 22,700 strikes, with substantial put open interest at 22,500 and 22,400. The Nifty’s Advance Decline Ratio stood at 16:34. “The zone of 22,380–22,400 will act as a crucial support for the index while the resistance lies in the zone of 22,690–22,710,” noted SBI Securities in its mid-market update, adding that a surge above 22,710 could extend the rally toward 22,860.

Crude oil retreats from recent highs

A pullback in crude oil provided relief. MCX crude fell 2.24 per cent to ₹9,580 per barrel, while WTI crude slipped 2.64 per cent to around $100.70, retreating after Friday’s settlement at $103.27. Brent eased to around $114.80 from Friday’s six-month high close of $116.72. “Profit-taking has emerged despite renewed supply concerns after the Houthis claimed attacks on a Saudi airport and oil facilities over the weekend,” said Ponmudi R.

Gold and silver recover; US data in focus

In commodities, COMEX gold rose 0.53 per cent to around $4,030, recovering from a brief dip below $4,000 — the first since mid-July — after falling 4.2 per cent last week. MCX gold traded at ₹142,440, up 0.29 per cent. COMEX silver outperformed, gaining 0.86 per cent to $54.40, while MCX silver rose 0.54 per cent to ₹196,770, though both metals remain near multi-month lows with RSI readings in oversold territory. “The Fed’s October 27–28 meeting and Thursday’s US PCE inflation report are likely to be key near-term catalysts,” said Ponmudi R.

Rupee consolidates near ₹95 against dollar

The Indian rupee held near ₹94.935 against the US dollar, consolidating in the 94.90–95.00 range. “WTI crude continues to trade near $101 a barrel, keeping energy costs in focus and raising concerns over the pressure on corporate profitability,” Ponmudi R added. Investors will watch whether the afternoon recovery holds into the close, with key Nifty resistance placed at 22,800 and Sensex resistance at 73,400.

Published on October 26, 2026