FIIs offload Indian equities worth Rs 1,605 crore while DIIs buy Rs 2,916 crore on October 1

Indian equity markets staged a strong rebound after eight consecutive sessions of decline, with the Nifty50 closing 225 points higher at 24,836 (+0.9%). Banking and financial stocks led the upmove, as the Nifty Bank and Nifty Financial Services indices gained over 1% each, supported by the RBI’s dovish stance that hinted at future rate cuts.

Reflecting on today's market performance, Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services says, "Barring the PSU Bank index, which slipped 0.4% on profit-booking after its recent rally, all other sectoral indices ended in the green. NBFC stocks rallied 3–5% after the RBI introduced regulatory changes aimed at easing infrastructure financing."

In its policy outcome today, the RBI kept the benchmark repo rate unchanged at 5.5% for the second consecutive meeting, while announcing a set of reforms to enhance bank lending.

Khemka adds, "Auto and FMCG names are expected to gain traction on the back of strong rural demand after IMD reported India’s best monsoon in five years (8% above the Long Period Average); together with support from the GST rate cuts. Meanwhile, investors will keep a close watch on the ongoing announcements of auto sales for Sep’25. While Indian equity markets will remain closed on Thursday for Dussehra and Gandhi Jayanti, we expect positive momentum to sustain on Friday, supported by an accommodative monetary policy, favourable monsoon season and festive-led boost in demand."

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