Sensex Rallies Past 60,500 as Rate-Cut Signals Lift Banking Stocks
Benchmark indices climbed for a fourth straight session after the central bank's commentary raised expectations of an easing cycle early next year.
Markets Correspondent · October 1, 2026 · 4 min read
Updated October 1, 2026, 18:01 IST
Indian equities extended their winning streak on Thursday, with the Sensex closing above the 60,500 mark as investors priced in a growing likelihood of interest-rate cuts in the first quarter of next year.
Banking and financial stocks led the advance, with heavyweight lenders gaining between one and two percent. Analysts said the central bank's latest commentary — which flagged easing inflationary pressure alongside resilient growth — gave markets the clearest signal yet that the policy stance could turn accommodative.
Foreign institutional investors were net buyers for a third consecutive session, while domestic mutual funds continued their steady accumulation. Market breadth was positive, with advancers outnumbering decliners by nearly two to one.
Traders cautioned that valuations in several pockets now look stretched, and that the rally's durability will depend on corporate earnings in the coming results season. For the moment, though, momentum remains firmly with the bulls.
