Nifty October Recap: Ends 2-Month Losing Streak; 6 Factors Driving the Rally
The Indian stock market witnessed a mixed but eventful October, with benchmark indices recovering from the previous month's losses. The Nifty 50 ended its two-month losing streak, supported by a strong rally in IT stocks and buying interest in select heavyweight companies. However, the broader market remained under pressure as several sectors struggled to participate in the recovery.
October also saw several major developments beyond corporate earnings, including the country's biggest IPO, the RBI's interest rate hike and the Supreme Court's intervention in cancer drug pricing. Here's a look at the stocks that led the market and six major factors that shaped its performance.
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Nifty 50 and Bank Nifty Performance
The Nifty 50 gained approximately 1.91 percent in October, rising from 22,620.45 on September 30 to 23,053.70 on October 30. This marked a recovery after two consecutive months of losses. Meanwhile, the Bank Nifty remained largely unchanged, closing at around 54,660.85 compared with 54,633.05 at the end of September.
IT stocks dominated the monthly performance, with TCS, Infosys and Tech Mahindra among the notable gainers. On the other hand, healthcare, financial and consumer stocks faced pressure, highlighting the uneven nature of the market recovery.
Biggest Gainer of the Month: Among the top Nifty 50 gainers in October, TCS led the list with a 21 percent rise, followed by Infosys, which gained 18 percent. Tech Mahindra also delivered a strong performance, with its shares advancing 14.74 percent during the month. IT stocks remained in focus as investors showed renewed interest in the sector.
Biggest laggards of the month : On the other hand, Shriram Finance was among the biggest Nifty 50 laggards in October, with its shares declining 15.3 percent. Nestle India fell 13.06 percent, while Adani Enterprises recorded a decline of 11.36 percent. These stocks faced selling pressure despite the broader index ending the month higher.
Factors behind the market's October Performance
Government caps trade margins on 137 anti-cancer drugs at 30 percent
Hospital stocks came under pressure in October after the government announced a 30 percent cap on trade margins for 137 anti-cancer drugs, including several patented medicines such as pembrolizumab, ribociclib and abemaciclib. The revised prices will come into effect from November 9, 2026, with manufacturers required to submit updated maximum retail prices (MRPs) to the National Pharmaceutical Pricing Authority (NPPA).
The move follows concerns over high markups on cancer medicines, with some non-scheduled drugs reportedly carrying trade markups of around 170 percent and reaching as high as 700 percent in certain cases. The NPPA expects the price rationalisation to reduce medicine costs by around 20 to 70 percent in several cases, potentially improving affordability for patients.
The development brought hospital medicine pricing under focus and weighed on shares of Apollo Hospitals, Fortis Healthcare and Max Healthcare.
Jio Platforms creates history with India's biggest IPO:
Jio Platforms became a major talking point in October with its Rs 30,213 crore IPO, which opened for subscription between October 21 and 23. The issue attracted bids worth more than $77 billion and received over 13.8 million applications, setting a record for an Indian IPO.
The strong response reflected significant investor interest in the telecom and digital services business. Jio's listing also added momentum to the primary market, while its market debut became one of the most closely watched events of the month.
RBI rate hike and sectoral rotation reshape investor sentiment:
The RBI increased the repo rate by 25 basis points to 5.50 percent on October 7, marking its first rate hike since February 2023. The central bank also shifted its policy stance to calibrated tightening, changing expectations around the future interest rate cycle.
IT leads while metals and realty stocks struggle
The IT sector emerged as the strongest performer in October, with the Nifty IT index gaining around 17.35 percent between September 30 and October 30. TCS, Infosys and Tech Mahindra were among the major gainers during the month. In contrast, metals, and realty stocks struggled, with their respective sectoral indices declining around 8.81 percent, and 3 percent over the same period.
Global inflation concerns put crude oil in focus
Crude oil prices remained an important concern for Indian markets during October, with Brent crude trading above $100 per barrel during parts of the month. Higher oil prices can increase India's import bill, put pressure on the rupee and add to domestic inflation. This also raises concerns for sectors such as aviation, paints, chemicals and transportation, where fuel and raw material costs can affect profit margins.
Gold and silver crash while rupee remains under pressure
Precious metals also witnessed a sharp correction in October. According to MCX rates, Silver also slipped below Rs 2 lakh per kg on MCX, declining 19.7 percent in a month, while gold fell 5 percent since September 30.
Meanwhile, the rupee weakened against the US dollar, touching an intraday low of Rs 96.85 on October 7 before recovering towards Rs 94.96 on October 16 following RBI intervention, and currently trading near the same levels.
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Conclusion
October ended on a positive note for the Indian stock market, with the Nifty 50 breaking its two-month losing streak, largely supported by strong gains in IT stocks. However, pressure on hospital, metal, and realty stocks showed that the recovery remained uneven. Going ahead, investors will closely track corporate earnings, crude oil prices, currency movements, and global developments to assess whether the market can sustain its recovery.