Domestic equity indices ended higher on Wednesday, snapping an eight-day losing streak, after the Reserve Bank of India's Monetary Policy Committee left the repo rate unchanged at 5.5%. The Nifty closed above the 24,800 mark, led by gains in private banks and financial services stocks. Investor sentiment improved as the RBI announced pro-market measures and signalled a stronger macro outlook, with Governor Sanjay Malhotra highlighting a shift in growth-inflation dynamics since August. The central bank lowered its FY26 inflation forecast and raised its GDP growth projection.

The S&P BSE Sensex jumped 715.69 points or 0.89% to 80,983.31. The Nifty 50 index gained 225.20 points or 0.92% to 24,836.30. In the past eight trading sessions, the Sensex plummeted 3.31% and the Nifty tumbled 3.20%.

Tata Motors (up 5.54%), ICICI Bank (up 1.77%) and HDFC Bank (up 1.48%) boosted the indices higher today.

In the broader market, the S&P BSE Mid-Cap index gained 0.91% and the S&P BSE Small-Cap index rose 1.16%.

The market breadth was strong. On the BSE, 2,721 shares rose and 1,440 shares fell. A total of 142 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 7.02% to 10.29.

The stock market will remain shut on Thursday, 2 October 2025, for Mahatma Gandhi Jayanti and Dussehra.

Economy:

The Reserve Bank of India's Monetary Policy Committee (MPC) kept the policy repo rate unchanged at 5.5% in its review that concluded on 1 October 2025.

The committee maintained a neutral stance, noting that it was prudent to wait for the impact of past policy measures and for greater clarity on global developments before making further moves. The standing deposit facility (SDF) rate stays at 5.25%, while the marginal standing facility (MSF) rate and the bank rate remain at 5.75%.

The RBI noted that the global economy has been stronger than expected in 2025, supported by robust growth in the US and China, though elevated policy uncertainty, sticky inflation in some advanced economies, and volatile financial markets pose risks. In India, GDP expanded 7.8% in Q1 FY26 on the back of resilient consumption and investment, a revival in manufacturing, and steady services growth. Rural demand was buoyed by a good monsoon, while urban demand showed signs of recovery. Looking ahead, healthy agriculture prospects, rising capacity utilization, GST rationalization, and supportive financial conditions are expected to aid growth, though global trade and geopolitical risks remain a drag.

The central bank raised its real GDP growth forecast for FY26 to 6.8% from 6.5% earlier, projecting growth at 7% in Q2, 6.4% in Q3, and 6.2% in Q4. For Q1 FY27, growth is expected at 6.4%.

On inflation, the RBI cut its CPI forecast for FY26 to 2.6% from 3.1%, with projections of 1.8% in Q2 and Q3, 4% in Q4, and 4.5% in Q1 FY27. Inflation is seen staying contained, though tariff-related developments could weigh on the growth outlook in the second half.

The minutes of the meeting will be published on 15 October, and the next MPC meeting is scheduled for 3-5 December 2025.

Separately, Governor Sanjay Malhotra said Indian banks will soon be allowed to finance acquisitions by domestic corporates under an enabling framework. The central bank proposed to remove the regulatory ceiling on lending against listed debt securities. In addition, the lending limit against shares will be raised from Rs 20 lakh to Rs 1 crore per person, while IPO financing will see its ceiling enhanced from Rs 10 lakh to Rs 25 lakh.

Meanwhile, the HSBC India Manufacturing PMI was revised down to 57.7 in September 2025 from a preliminary estimate of 58.5, and compared to August's 17-and-a-half-year high of 59.3. Despite the fall, the figure remained well above the long-term average, signaling continued strength in the sector.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell 0.67% to 6.527 from the previous close of 6.517.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 88.6825 compared with its close of 88.8075 during the previous trading session.

MCX Gold futures for 3 October 2025 settlement gained 0.49% to Rs 116,434.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was flat to 97.45.

The United States 10-year bond yield rose 0.10% to 4.152.

In the commodities market, Brent crude for November 2025 settlement lost 1 cent or 0.02% to $66.02 a barrel.

Global Markets:

The U.S. Dow Jones index futures were down 239 points on Wednesday, indicating a weak opening for Wall Street.

European market advanced on Wednesday, as investors monitor the U.S. government shutdown.

The US government has entered its first shutdown since 2019 after Congress failed to pass a stopgap spending bill, triggering the furlough of about 750,000 federal employees and disruption of services. The standoff stems from a clash between President Donald Trump and Democrats over healthcare funding, with neither side backing down. Unlike past shutdowns, the administration has indicated readiness for a prolonged impasse and even suggested making some of the temporary job losses permanent, signalling a strategy that could reshape the federal workforce.

Most Asia market ended higher, following gains on Wall Street as investors appeared unperturbed by a U.S. government shutdown.

Markets in mainland China and Hong Kong were closed for a holiday.

Over in Japan, the central bank released the results for its third-quarter Tankan survey.

The index for business optimism among large Japanese manufacturers increased to +14 for the third quarter from +13 in the previous quarter but was lower than the +15 expected by economists polled by Reuters. The non-manufacturing index held steady at +34.

Overnight in the U.S., stocks ended higher on Tuesday as investors looked past concerns over a potential government shutdown and marked an unusually strong September.

The S&P 500 rose 0.41% to close at 6,688.46, while the Nasdaq Composite gained 0.31% to finish at 22,660.01. The Dow Jones Industrial Average advanced 81.82 points, or 0.18%, to settle at 46,397.89, setting a new closing high.

New Listing:

Shares of Jain Resource Recycling were at Rs 318.25 on the BSE, representing a premium of 37.18% compared with the issue price of Rs 232.

The scrip was listed at Rs 265.25, exhibiting a premium of 14.33% to the issue price. The stock has hit a high of Rs 318.25 and a low of Rs 247.80. On the BSE, 28.02 lakh shares of the company were traded in the counter.

Shares of BMW Ventures were at Rs 76 on the BSE, representing a discount of 23.23% compared with the issue price of Rs 99.

The scrip was listed at Rs 80, exhibiting a discount of 19.19% to the issue price. The stock has hit a high of Rs 80 and a low of Rs 76. On the BSE, 2.17 lakh shares of the company were traded in the counter.

Shares of Epack Prefab Technologies were at Rs 191.10 on the BSE, representing a discount of 6.32% compared with the issue price of Rs 204.

The scrip was listed at Rs 186.10, exhibiting a discount of 8.77% to the issue price. The stock has hit a high of Rs 197.75 and a low of Rs 183.85. On the BSE, 7.21 lakh shares of the company were traded in the counter.

Auto sales data:

Escorts Kubota rose 5.42% after the tractor manufacturer announced that its agri-machinery business division sales grew by 47.6% to 18,267 units in September 2025 as against 12,380 units sold in September 2024.

VST Tillers Tractors rallied 3.96% after reporting a 34.72% increase in total sales to 3,480 units in September 2025, up from 2,583 units sold in September 2024.

Atul Auto advanced 3.77% after the company reported 4.22% rise in total sales to 3,503 units in September 2025 as against 3,361 units sold in September 2024.

Mahindra & Mahindra (M&M) advanced 1.26% after the company's overall sales jumped 16% to 100,298 vehicles sold in September 2025 as against 87,839 units sold in September 2024.

Hyundai Motor India shed 1.80%. The compnay said that it has achieved total monthly sales of 70,347 units in September 2025, which is a 10% increase from 64,201 units in September 2024.

SML Isuzu rose 1.26%. The company's total auto sales fell by 10% to 950 units in September 2025 from 1,055 units sold in the same period last year.

Steel Strips Wheels (SSWL) rose 3.84% after the company reported a net turnover of Rs 410.60 crore for September 2025, marking a 13.39% year-on-year (YoY) increase compared to Rs 362.12 crore recorded in September 2024.

Bajaj Auto shed 0.43%. The company has reported 9% increase in total auto sales for September 2025, selling 5.10 lakh units as against 4.69 lakh units sold in September 2024.

Stocks in Spotlight:

Hi-Tech Pipes advanced 3.83% after the company registered a sales volume of 1,25,218 MT in Q2 FY26, which is higher by 1.79% as compared to 1,23,027 MT recorded in Q2 FY25.

Indian Renewable Energy Development Agency (IREDA) added 2.62% after the company's loan disbursement jumped 54% to Rs 15,043 crore as on 30th September 2025, compared with Rs 9,787 crore as on 30th September 2024.

RailTel Corporation of India rose 3.22% after the company has awarded a Rs 16.31 crore work order to domestic company RTNS Technology for supply and installation services, in line with the customer's requirements.

SG Finserve added 2.42% after the company's loan book increased 15% to Rs 2,878 crore as on Q2 FY26 as compared with Rs 2,504 crore recorded in Q1 FY26.

Quality Power Electrical Equipments shed 2.08%. The company announced that it has received a purchase order worth Rs 13.94 crore for the supply of high voltage air core reactors from an undisclosed international entity.

IPO Update:

Glottis received bids for 4,11,62,322 shares as against 2,01,23,929 shares on offer, according to stock exchange data at 16:51 IST on Wednesday (1 October 2025). The issue was subscribed 2.05 times.

The issue opened for bidding on Monday (29 September 2025) and it will close on Wednesday (1 October 2025). The price band of the IPO is fixed between Rs 120 and Rs 129 per share. An investor can bid for a minimum of 114 equity shares and in multiples thereof.

Om Freight Forwarders received bids for 2,02,47,621 shares as against 79,16,945 shares on offer, according to stock exchange data at 16:51 IST on Wednesday (1 October 2025). The issue was subscribed 2.56 times.

The issue opened for bidding on Monday (29 September 2025) and it will close on Friday (3 October 2025). The price band of the IPO is fixed between Rs 128 and Rs 135 per share. An investor can bid for a minimum of 111 equity shares and in multiples thereof.

Fabtech Technologies received bids for 2,44,67,850 shares as against 1,20,60,000 shares on offer, according to stock exchange data at 16:51 IST on Wednesday (1 October 2025). The issue was subscribed 2.03 times.

The issue opened for bidding on Monday (29 September 2025) and it will close on Wednesday (1 October 2025). The price band of the IPO is fixed between Rs 181 and Rs 191 per share. An investor can bid for a minimum of 75 equity shares and in multiples thereof.

Advance Agrolife received bids for 2,52,29,550 shares as against 1,35,09,004 shares on offer, according to stock exchange data at 16:51 IST on Wednesday (1 October 2025). The issue was subscribed 1.87 times.

The issue opened for bidding on Tuesday (30 September 2025) and it will close on Friday (3 October 2025). The price band of the IPO is fixed between Rs 95 and Rs 100 per share. An investor can bid for a minimum of 150 equity shares and in multiples thereof.

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