Stock Market Outlook Today: Sensex, Nifty Set to Extend Gains Backed by Sectoral Momentum, Crude Price Fall

Indian equities are poised to trade with a positive bias on Monday, October 6, 2025, as multiple tailwinds continue to support market sentiment. After ending higher for the second consecutive session on Friday, markets are expected to maintain the upward momentum, bolstered by a dovish Reserve Bank of India (RBI), strong sectoral performance, falling crude prices and optimism around the upcoming festive demand cycle.

Stock Market Outlook Today For 6 October 2025

On Friday, the Nifty50 gained 57 points (+0.2%) to end at 24,894, while the Nifty Midcap100 and Smallcap100 rose 0.8% and 0.7%, respectively. Broader market participation remained strong, signaling sustained investor confidence.

According to Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd, "Indian equities closed higher for the second straight session on Friday, buoyed by optimism from the Reserve Bank of India's dovish stance and recent regulatory reforms."

Markets have been cheering the RBI's recent announcements, including the migration of Expected Credit Loss (ECL) norms from April 2027, adjustments in risk-weight norms, clarity on NBFC-bank overlaps and the revamped deposit insurance framework. These steps are seen as proactive in strengthening the financial system and ensuring smoother credit flows, particularly aiding PSU banks which closed 1.1% higher on Friday.

Nifty Prediction Today: What To Expect From Market Today

The Nifty index continues to show strength on technical charts, indicating potential for further upside in the coming sessions. According to Bajaj Broking, on the daily chart, the index has formed a bull candle with a higher high and higher low, signaling an extension of the pullback for the second session in a row.

This positive momentum is echoed on the weekly chart as well, where a bull candle with a small lower shadow suggests buying demand near the critical support zone of 24,400-24,600.

In the near term, a follow-through strength could open up room for a rally towards 25,100, which marks the 61.8% Fibonacci retracement of the recent decline from 25,448 to 24,588. However, short-term resistance is seen at 25,400, which coincides with a trendline resistance connecting the major highs of June and September 2025.

On the downside, Friday's low of 24,747 will serve as immediate support, and sustaining above this level will likely keep the current pullback intact. The key support zone remains at 24,400-24,600, a confluence of the 200-day EMA, last week's low, and prior major lows over the past two months.

Stocks in Focus Today: Sector-wise Stocks Performance Trends

Another bright spot was the metal sector, which rallied 1.8%, backed by higher global metal prices, reduced supply and steady demand. The upward trend is likely to continue in the short term, as global commodity cycles remain supportive. Defence stocks also extended their winning streak to a third day, with private players outperforming PSUs, a sign of growing investor preference for nimble, high-growth defence firms.

Capital goods stocks remain in focus following Finance Minister's reaffirmation of the government's commitment to increase capital expenditure-an encouraging sign for long-term infrastructure growth.

On the macro front, easing Brent crude prices have further lifted sentiment. Brent prices fell for the third consecutive session to a 16-week low, offering relief on India's import bill and inflation concerns. Lower crude costs bode well for the economy and improve prospects for sectors such as FMCG, paints and aviation.

The outlook for October 6, 2025 as per expert Siddhartha Khemka, is also underpinned by strong sectoral trends. The latest quarterly updates from value fashion retailers catering to Tier-2 and Tier-3 markets have reported robust revenue and same-store sales growth (SSSG), suggesting strong rural and middle-class consumption-a positive lead-in to the festive season.

The auto sector displayed mixed but largely encouraging trends. Passenger vehicle (PV) sales were slightly limited due to logistics issues, but retail sales recovered well across categories. Two-wheeler (2W) and commercial vehicle (CV) segments posted 11% and ~13% year-on-year growth respectively, while the tractor segment surprised on the upside with nearly 50% YoY growth in volumes from both listed players.

Globally, investors are eyeing the U.S. S&P Services PMI and Non-Manufacturing PMI data due later today. Any upside surprise in these numbers could lend further support to risk sentiment globally.

Disclaimer

The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.