The Index Rose. The Market Didn't.

Oct'26

Nifty 50 rose 2.0% in October. Nifty 500, which contains it, fell 0.8%. The gap sits below the large caps: Midcap 150 lost 3.7% and Smallcap 250 lost 5.8%. IT rose 18.1%, yet it is still down 7.1% over twelve months.

Last month's watch-list: the RBI hiked 25 bp to 5.5%, TCS reported on October 8, and the Fed held rates.

Source: NSE Index Dashboard

IT Led by a Distance. NBFCs and Construction Trailed.

Sector index return (total return), October 2026

Where the money went

IT+18.1%

Media+3.1%

PSU Bank+2.7%

Pharma+2.6%

Private Bank+1.3%

Where it didn't

NBFC-8.6%

Construction-7.9%

Metal-7.5%

Chemicals-6.1%

Consumer Durables-5.7%

IT: TCS rose about 20%; analysts cite affordable valuations and better earnings growth.
NBFCs: funding-cost fears (RBI’s tighter CRR rule, rate hike), then Bajaj Finance (gold-loan overdues) and Shriram (guidance cut). Seven of the top ten fell 6% to 18%.
Construction: L&T (21.9% wt) rose 4.8% after Q2 order intake grew 28%, yet the index fell. Kalpataru (12.4% wt) and Rail Vikas (8.3% wt) fell 1.4% and 8.8%; Engineers India fell 19.5%.

The Record IPO Rose ~27% on Day One. The Previous Record Fell ~7%.

Jio's ~₹30k crore IPO is India's largest, ahead of Hyundai's ~₹28k crore (2024).

Source: Chittorgarh.com.

Watch this month: October CPI and NBFC credit costs.