Bank stocks lift Indian markets as crude prices ease, RBI decision eyed

Indian equities advanced on Wednesday, October 7, 2026, with banking shares leading gains in the Sensex and Nifty as crude oil prices eased and investors awaited the RBI's monetary policy decision. Axis Bank closed at Rs 1,251.00, up 2.4% for the day, while Kotak Mahindra Bank ended at Rs 439.00, up 1.6%. Axis remained down 1.0% over one month and 6.6% over three months, whereas Kotak was up 4.0% and 15.1% over those periods. The banks' quarterly performance was characterised as strong, though no underlying earnings figures were provided.

The move matters because softer crude tends to ease India's imported inflation pressure, which may give the RBI more room on rates and support oil consuming sectors. For banks, the policy decision and accompanying guidance could influence funding costs, lending margins and credit demand. Axis Bank and Kotak Mahindra Bank are the clearest listed exposures named, although the banking sector was still down 4.2% over one month and 3.8% over three months. Sustained crude weakness, supportive RBI guidance and resilient bank margins and asset quality would confirm the reading. A crude rebound, restrictive policy signals or weaker banking fundamentals would undermine it.