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Markets trade firm in late afternoon session
Oct-01-2025

Indian equity markets continued to hold their gains in late trade supported by buying in Banking and Auto stocks. Significant strength has been seen in banking and financial service stocks after Reserve Bank of India announced measures on capital market lending and banking operations, which uplifted the trading sentiments. Besides, GST rate cuts and festive demand have fuelled buying in Auto stocks. Sentiments also remained upbeat after RBI indicated that the inflation outcome is likely to be softer than what was projected in the August MPC resolution, primarily on account of the GST rate cuts and benign food prices. CPI inflation for 2025-26 is now projected at 2.6 per cent with Q2 at 1.8 per cent; Q3 at 1.8 per cent; and Q4 at 4.0 per cent. CPI inflation for Q1:2026-27 is projected at 4.5 per cent. 

On the global front, Asian equity markets were trading mixed after as the United States plunged into a government shutdown, a few hours after the Senate failed to pass a short-term spending bill. All European equity markets were trading higher despite rise in Eurozone inflation in the month of September.

The BSE Sensex is currently trading at 80941.89, up by 674.27 points or 0.84% after trading in a range of 80159.90 and 80988.44. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index  gained 0.70%, while Small cap index was up by 0.95%.

The top gaining sectoral indices on the BSE were Bankex up by 1.48%, Healthcare up by 1.22%, Realty up by 1.12%, Telecom up by 0.96% and IT up by 0.84%. Meanwhile, there were no losers on BSE sectoral index.

The top gainers on the Sensex were Tata Motors up by 5.11%, Kotak Mahindra Bank up by 3.64%, Trent up by 3.47%, Sun Pharmaceutical Industries up by 2.78% and Axis Bank up by 2.49%. On the flip side, Bajaj Finance down by 1.42%, Ultratech Cement down by 0.86%, Maruti Suzuki down by 0.85%, SBI down by 0.83% and Asian Paints down by 0.76% were the top losers.

Meanwhile, the Monetary Policy Committee (MPC) under the Reserve Bank of India (RBI) at its fourth bi-monthly monetary policy of the current fiscal (FY26) kept its policy interest rate unchanged at 5.5 per cent for the second consecutive time, citing concerns over tariff uncertainties. Consequently, the standing deposit facility (SDF) rate remains at 5.25 per cent while the marginal standing facility (MSF) rate and the Bank Rate remains at 5.75 per cent. The MPC also decided to continue with the neutral stance.

CPI headline inflation declined to its eight-year low of 1.6 per cent (y-o-y) in July 2025 before rising to 2.1 per cent in August - its first increase after nine months. Benign inflation conditions during 2025-26 so far have been primarily driven by a sharp decline in food inflation from its peak of October 2024. Inflation within the fuel group moved in a narrow range of 2.4-2.7 per cent during June-August. Core inflation remained largely contained at 4.2 per cent in August. Excluding precious metals, core inflation was at 3.0 per cent in August. In terms of the inflation outlook for H2: 2025-26, healthy progress of the southwest monsoon, higher kharif sowing, adequate reservoir levels and comfortable buffer stock of foodgrains should keep food prices benign. The recently implemented GST rate rationalisation would lead to a reduction in prices of several items in the CPI basket. Overall, the inflation outcome is likely to be softer than what was projected in the August MPC resolution, primarily on account of the GST rate cuts and benign food prices. CPI inflation for 2025-26 is now projected at 2.6 per cent with Q2 at 1.8 per cent; Q3 at 1.8 per cent; and Q4 at 4.0 per cent. CPI inflation for Q1:2026-27 is projected at 4.5 per cent. 

On the economy front, in India, real gross domestic product (GDP), driven by strong private consumption and fixed investment, recorded a robust growth of 7.8 per cent in Q1:2025-26. On the supply side, growth in gross value added (GVA) at 7.6 per cent was led by a revival in manufacturing and steady expansion in services. Available high frequency indicators suggest that economic activity continues to remain resilient. Rural demand remains strong, riding on a good monsoon and robust agriculture activity, while urban demand is showing a gradual revival. Real GDP growth for 2025-26 is now projected at 6.8 per cent, with Q2 at 7.0 per cent, Q3 at 6.4 per cent, and Q4 at 6.2 per cent. Real GDP growth for Q1:2026-27 is projected at 6.4 per cent.

The CNX Nifty is currently trading at 24831.85, up by 220.75 points or 0.90% after trading in a range of 24605.95 and 24837.65. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 5.10%, Tata Motors up by 5.08%, Kotak Mahindra Bank up by 3.71%, Trent up by 3.39% and Sun Pharmaceutical Industries up by 2.94%. On the flip side, Bajaj Finance down by 1.32%, Ultratech Cement down by 0.93%, Tata Steel down by 0.75%, SBI down by 0.75% and Maruti Suzuki down by 0.69% were the top losers.

Asian equity markets were trading mixed; Taiwan Weighted added 162.37 points or 0.62% to 25,982.91, Straits Times rose 14.95 points or 0.35% to 4,315.11and KOSPI increased 31.23 points or 0.9% to 3,455.83, while Nikkei 225 slipped 369.63 points or 0.83% to 44,563.00 and Jakarta Composite plunged 12.72 points or 0.16% to 8,048.34. The Hang Seng and Shanghai Composite were closed for the National Day holiday.

All European equity markets were trading higher; UK’s FTSE 100 increased 65.74 points or 0.7% to 9,416.17, France’s CAC rose 0.96 points or 0.01% to 7,896.90 and Germany’s DAX gained 29.08 points or 0.12% to 23,909.80.
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