Indian benchmarks traded in a narrow range, with Sensex and Nifty ending modestly higher, rebounding from early losses amid mixed global cues. Investors monitored U.S. bond yields and crude oil prices, balancing risk sentiment. Defensive sectors, including IT and FMCG, led gains, offsetting weakness in heavyweight stocks. Market turnover remained moderate as participants awaited key policy data scheduled later this week. The session reflected cautious optimism, with selective buying in resilient sectors supporting broader market stability amid global and domestic uncertainties.

Major Indian mutual funds increased equity allocations in their October portfolios, according to recent filings. Large-cap and flexi-cap schemes led inflows, supported by steady SIP contributions from retail investors. Portfolio adjustments reflected sector rotation, with higher exposure to IT and pharma stocks, while banking allocations were slightly reduced amid selective profit-taking. Fund managers are balancing growth and stability, capitalizing on resilient sectors, and navigating market volatility. The trend underscores sustained investor interest in equities and active portfolio rebalancing across key segments.