Sensex rises over 100 points, Nifty above 22,600 as market extends gains. Why caution is warranted
RBI moved higher in an institutional flows development.
6 Oct 2026 · ET Stocks, Economic Times Markets
Indian equities extended their recovery for a second session, with Sensex and Nifty posting modest gains amid improved investor sentiment. Trent surged nearly 9% following a strong business update, while banks and NTPC advanced. However, analysts warned of continued FII selling, elevated bond yields, crude price uncertainty and potential RBI rate hikes, limiting upside.
The analysis
RBI reported movement of 9%. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is -1.4% on the day at ₹317.00, and has returned -10.3% over three months. It sits 23% below its 52-week high. The power sector has moved -16.4% over the same period, so NTPC is running 6.0 points ahead of its peers.
This is an Index / institutional flows event. Passive and institutional flows move price independently of fundamentals, and around rebalancing dates they dominate it. On the day the stock is -1.4%, so a modest reaction.
Why it matters
- Sustained FII or DII direction moves the whole market, not just the names being bought — it sets the tape's tone.
- With RBI, BSE involved, this carries a regulatory dimension that can outlast the immediate market reaction.
Market context
- The company directly in focus is NTPC.
- Sector exposure: Power, Banks.
- The immediate tone of coverage reads positive.
In this story
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