The S&P BSE SENSEX opened the session with a surge of over 400 points, reaching 72,651.25 at 09:21 AM, an increase of 178.92 points or 0.25%. The NSE’s NIFTY50 mirrored the positive tone, trading at 22,585.05, up 64.60 points or 0.29%. By 09:33 AM, the SENSEX had pared most of its gains, settling near flat at 72,484.33, while the NIFTY50 was quoted at 22,551.90, up 31.45 points or 0.14%. The domestic market pared its early gains amid heightened volatility on Monday, October 12, after opening on a positive note.

At 09:36 AM, 37 of the 50 NIFTY50 constituents were trading in the green, while the remaining 13 were in the red. Bajaj Auto led the gainers, rising 3.46%, followed by Dr Reddy’s Laboratories, up 1.56%. BEL, Trent and Tata Steel were also among the top five gainers, advancing between 1.13% and 1.39%. Tech Mahindra was the top loser on the index, falling 3.45%. Bharti Airtel, ITC, Axis Bank and State Bank of India were among the other notable laggards.

Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, noted that Indian equities ended a volatile week modestly higher, as Friday’s rebound offset much of Thursday’s sharp decline. He cited the RBI’s 25‑basis‑point rate increase, elevated crude prices, high global bond yields and sustained foreign selling as weighing on sentiment. Domestic institutional investors absorbed nearly the entire ₹30,000‑crore weekly outflow from foreign institutional investors, providing a crucial counterweight.

September CPI inflation will be the first major domestic test next week. A stronger‑than‑expected reading could revive concerns over further RBI tightening, putting rate‑sensitive sectors such as banking, automobiles and real estate under pressure while raising the risk of a broader drag on consumer demand. A softer print could ease concerns over the eventual peak in interest rates, but any relief may prove short‑lived if Brent crude remains above $100 a barrel. Wholesale price inflation data will offer a further indication of how elevated energy and logistics costs are filtering through to producer prices.

Market breadth on the NSE remained positive. Of the 3,188 stocks traded, 2,171 advanced, 896 declined and 121 remained unchanged, indicating that advances outnumbered declines. Broader markets also traded in positive territory, with small‑cap stocks outperforming their mid‑cap peers. The NIFTY Midcap 100 rose 0.39% to 59,018.50, while the NIFTY Smallcap 100 gained 1.20% to 19,383.35. The breadth data reflects a selective rally across sectors, with large‑cap names showing mixed performance.

The day’s trading activity underscored the market’s sensitivity to macroeconomic signals and institutional flows. While domestic investors steadied the index against foreign outflows, the persistence of elevated commodity prices and global bond yields continued to exert pressure on sentiment. Investors will likely monitor upcoming inflation releases and corporate earnings, particularly in the IT and banking sectors, to gauge whether the recent gains can sustain momentum in the face of potential policy tightening and external volatility today.