Sensex gains 4,000 points in October: Hold or book profits?

Sensex gains 4,000 points in October: Hold or book profits?

The Indian stock market has witnessed a remarkable recovery this October, with the Sensex gaining over 4,000 points.

The surge is largely attributed to foreign institutional investors (FIIs) reversing their previous selling trend and investing more than ₹7,300 crore into Indian equities.

This has brought the benchmark index within striking distance of its all-time high of 85,978.

Meanwhile, Nifty is just about 410 points away from its record high.

Nifty Bank surges over 6% this October

The market rally has largely been led by frontline stocks, with Nifty Bank surging over 6% this October.

Midcap and smallcap indices have also seen moderate gains of 3-4%, indicating that the broader market is still in a recovery phase.

The recent performance of these indices suggests that while the market is recovering, it may not be fully in a bull cycle yet.

Earnings growth expected to improve from FY26

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said that the sharp decline in India's earnings growth to 5% in FY25 was the main reason behind the previous underperformance.

However, with early festive-season sales of automobiles and white goods showing robust growth, he expects earnings growth to rise to 8-10% in FY26.

This could accelerate further to 15% in FY27.