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Markets trade higher after cautious start ahead of RBI policy outcome
Oct-01-2025

Indian equity benchmarks made a cautious start on Wednesday but soon gained momentum and were trading higher in early deals ahead of the Reserve Bank of India’s (RBI) monetary policy outcome later in the day. There are expectations of no change in the repo rate and the policy stance. Traders took note of Commerce and Industry Minister Piyush Goyal’s statement that India is focusing on self-reliance by building capabilities and resilient supply chains, which will help the country tackle global challenges like weaponisation of trade.

On the global front, Asian markets were trading mostly higher, following the positive cues from Wall Street overnight, as traders react to a slew of economic data released in the region, despite the US government nearing a shutdown after a short-term spending bill failed to be passed. Meanwhile, large manufacturing in Japan accelerated slightly in the third quarter of 2025. China and Hong Kong are closed for the National Day holiday.

Back home, edible oil sectors’ stocks were in focus as the Indian Vegetable Oil Producers' Association (IVPA) called for accelerating the path towards self-sufficiency in edible oil amid declining imports, policy shifts and evolving free trade agreements.

The BSE Sensex is currently trading at 80475.23, up by 207.61 points or 0.26% after trading in a range of 80159.90 and 80496.78. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.51%, while Small cap index was up by 0.52%.

The top gaining sectoral indices on the BSE were Realty up by 1.25%, Healthcare up by 0.84%, Oil & Gas up by 0.75%, Energy up by 0.71% and PSU up by 0.67%, while TECK down by 0.11% was the sole losing index on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.06%, Trent up by 1.87%, Tata Motors up by 1.29%, Mahindra & Mahindra up by 1.26% and Tech Mahindra up by 1.20%. On the flip side, Bajaj Finance down by 1.30%, Bajaj Finserv down by 0.84%, Eternal down by 0.63%, Asian Paints down by 0.54% and Bharti Airtel down by 0.53% were the top losers.

Meanwhile, the Controller General of Accounts (CGA) in its data has showed that the Centre's fiscal deficit stood at 38.1 per cent of the Budget Estimates (BE) of 2025-26 in the first five months (April-August) of the financial year. In absolute terms, the fiscal deficit, or gap between the government's expenditure and revenue, was Rs 5,98,153 crore in the April-August period of 2025-26. The fiscal deficit was 27 per cent of the full-year target at the end of August 2024. The Centre estimates the fiscal deficit during 2025-26 at 4.4 per cent of the GDP, or Rs 15.69 lakh crore.

The CGA data showed that the government received Rs 12.82 lakh crore (36.7 per cent of the corresponding BE 2025-26 of total receipts) up to August 2025. This comprised Rs 8.1 lakh crore tax revenue (net to Centre), Rs 4.4 lakh crore of non-tax revenue and Rs 31,970 crore of non-debt capital receipts. CGA said Rs 5.3 lakh crore has been transferred to state governments as devolution of share of taxes by the central government till August, which is Rs 74,431 crore higher than the previous year.

The Centre's total expenditure was Rs 18.8 lakh crore (37.1 per cent of the corresponding BE 2025-26). Of this, Rs 14.49 lakh crore was on the revenue account and Rs 4.31 lakh crore on the capital account. Out of the total revenue expenditure, Rs 5,28,668 crore was on account of interest payments and Rs 1,50,377 crore on account of major subsidies. CGA said the fiscal deficit figure shown in monthly accounts during a financial year is not necessarily an indicator of fiscal deficit for the year, as it gets impacted by a temporal mismatch between the flow of non-debt receipts and expenditure up to that month.

The CNX Nifty is currently trading at 24682.45, up by 71.35 points or 0.29% after trading in a range of 24605.95 and 24687.40. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 2.12%, Shriram Finance up by 2.08%, Trent up by 1.92%, Bajaj Auto up by 1.47% and Mahindra & Mahindra up by 1.24%. On the flip side, Bajaj Finance down by 1.34%, Bajaj Finserv down by 0.76%, Eternal down by 0.69%, Interglobe Aviation down by 0.61% and SBI Life Insurance down by 0.59% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted jumped 261.37 points or 1.01% to 26,081.91, KOSPI increased 27.87 points or 0.81% to 3,452.47, Straits Times rose 24.29 points or 0.56% to 4,324.45 and Jakarta Composite was up by 12.16 points or 0.15% to 8,073.22, while Nikkei 225 slipped 362.63 points or 0.81% to 44,570.00.
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