Indian stock markets started Monday with gains as the Sensex and Nifty 50 continued their recovery trend. Positive momentum was aided by RBI intervention to support the rupee and a slight drop in crude oil prices, though concerns over foreign selling and global risks remain.
Indian equity markets began the trading session on October 12, 2026, in positive territory, extending the recovery seen at the end of last week. The BSE Sensex and NSE Nifty 50 traded in the green during early morning hours as buying interest returned to the bourses.
The initial market strength comes after the Reserve Bank of India introduced fresh measures to help the rupee. By directing oil companies to source their dollar requirements differently and tightening rules on currency hedging, the central bank is aiming to reduce volatility in the local currency. Additionally, a minor decline in international crude oil prices has provided some relief, as lower oil costs are generally seen as positive for the Indian economy and its import bill.
Despite these gains, the market environment remains sensitive. Investors are navigating a complex landscape where local recoveries face challenges from persistent foreign institutional investor selling. While the early trade shows an increase in advancers, the gains are tempered by caution regarding global geopolitical tensions.
Investors are keeping a close watch on crude oil prices, which remain above the $100 per barrel mark. High energy costs continue to fuel inflation concerns, which may impact company profit margins and consumer spending power. Furthermore, while the rupee shows signs of stabilization due to regulatory steps, its long-term direction will depend on global economic data and interest rate decisions.
Market experts note that while the current upward movement is a positive sign, the broader market remains volatile. The sustainability of this recovery will likely depend on whether foreign selling slows down and if global geopolitical risks stabilize. For the remainder of the session, traders are monitoring whether the indices can hold onto their early gains or if profit-booking emerges as the day progresses.