Nifty snaps 4-day fall: what value buying is and why markets bounce
· 4 min read · Tryvest
Why the Sensex and Nifty rose on 26 October 2026, ending a four-day fall, what value buying and sector indices mean, and what is scheduled next.
Indian shares rose on Monday, 26 October 2026, ending a run of four straight losing sessions. The Sensex gained 482.92 points, or 0.66%, to close at 73,606.75, and the Nifty 50 rose 153.20 points, or 0.68%, to settle at 22,753.20. The day began in the red, but buyers stepped in as the session went on, led by metal and pharma shares.
What happened
Trading was choppy. Both indices opened lower before turning higher as the day went on. Reports described it as a volatile session rather than a smooth climb.
Smaller companies did even better than the headline indices. The Nifty Midcap 100 rose 1.19% and the Nifty Smallcap 100 rose 1.38%, recovering from their morning lows after a sharp fall last week. Our post on why small stocks fall harder explains why they tend to swing more in both directions.
Among sectors, the Nifty Metal index gained 2.2% and the Nifty Pharma index rose 1.67%, with healthcare also among the gainers. Media and consumer durables (goods like fridges and air conditioners) were the weakest sectors.
Why the market rose, and what held it back
- Value buying after a fall. After four days of losses, many reports said investors were picking up shares that had become cheaper. The buying was selective, focused on metals, pharma and healthcare, rather than a broad change in mood.
- Early September-quarter results. Companies are reporting their July-September numbers. Analysts noted that early results showed stronger earnings in commodity-linked areas such as metals, power and refining.
- Oil stayed high. Brent crude, the global oil benchmark, stayed near $115 a barrel amid tension in West Asia. India imports most of its oil, so costly crude keeps worries about inflation and the import bill alive.
- Caution ahead of central banks. Reports said gains were capped by caution ahead of upcoming policy decisions by the US Federal Reserve, the European Central Bank and the Bank of Japan, and by a weak rupee.
Foreign investors have been large sellers this month. Our morning post explains who FPIs are and why their selling matters.
The idea behind it: what "value buying" and a "losing streak" mean
A losing streak simply counts how many trading days in a row an index closed lower. The Nifty had fallen on 19, 21, 22 and 23 October (20 October was a market holiday), so Monday's rise "snapped" a four-day streak.
Value buying is the idea that when prices fall, some investors see the same companies as better value than before and start buying. Imagine a shop selling a jacket for ₹2,000 that drops it to ₹1,700. Nothing about the jacket changed, but more people may now think it is worth buying. In markets, this kind of buying after a fall is a common reason for a rebound.
Two cautions matter for beginners. First, a cheaper price does not mean a share is good value; the price may have fallen for a real reason, such as weaker profits ahead. Second, one up day does not reverse a trend. Markets often bounce for a day or two during a falling phase, and nobody can know in advance whether a rebound will last. That uncertainty is part of the risk that comes with returns from shares.
The idea behind it: sector indices
The Nifty 50 is an average-style measure of 50 large companies. NSE also publishes sector indices that track only one industry, such as metal, pharma, IT or banking. When a report says "metal led the gains", it means the Nifty Metal index rose more than other sector indices that day. Sector moves help explain why the headline index moved: on a day like Monday, a few strong sectors can lift the whole market even while others fall. Our lesson on index funds explains how an index is built.
What to keep an eye on
- Wednesday, 28 October: the Jio Platforms IPO is scheduled to list on NSE and BSE, after allotment on 26 October.
- September-quarter results: many more companies report their July-September results this week and next.
- Central bank decisions: policy announcements from the US Federal Reserve, the European Central Bank and the Bank of Japan are due, which markets around the world watch closely.
Key points
- The Sensex rose 0.66% to 73,606.75 and the Nifty 50 rose 0.68% to 22,753.20, ending a four-day losing streak.
- Midcap and smallcap indices gained more than 1% each, recovering from morning lows.
- Metal (up 2.2%) and pharma (up 1.67%) led; media and consumer durables lagged.
- Oil near $115 a barrel, a weak rupee and caution before central bank decisions limited the gains.
- Value buying can lift prices after a fall, but a cheaper price is not the same as good value, and one up day is not a trend.
To see how sector news moves prices without risking real money, try a few practice trades in the Tryvest simulator, or start with our lesson on how the stock market works.