Indian benchmark indices snapped 8-day losing streak, ending strong with Nifty above 24,800 after RBI kept the repo rate unchanged, lowered its inflation forecast to 2.6 percent and upward revision of GDP growth projection to 6.8 percent.
In line with the expectations, the Reserve Bank of India’s Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.5 percent with a neutral stance, marking its second consecutive pause after three cuts totalling 100 basis points earlier this year.
The RBI announced a series of measures to expand bank lending to capital markets.
At close, the Sensex was up 715.69 points or 0.89 percent at 80,983.31, and the Nifty was up 225.20 points or 0.92 percent at 24,836.30. BSE Midcap index rose 0.9 percent and smallcap indices added 1%.
The market will remain shut on October 2 on account of Mahatma Gandhi Jayanti and Dussehra.
Also Read: RBI to introduce risk-based deposit insurance premium; flat rate to act as ceiling
Except PSU Bank, all other sectors ended in the green with private bank, realty, pharma, IT, media up 1-4 percent.
Tata Motors, Shriram Finance, Kotak Mahindra Bank, Trent, Sun Pharma were among biggest gainers on the Nifty, while losers were Bajaj Finance, Tata Steel, SBI, UltraTech Cement and Bajaj Auto.
Also Read: Starting October, immediate relatives of company insiders also placed under trading window closure
In stock-specific action, RateGain Travel Technologies shares rose 9% on acquisition of Sojern Inc, Indian Renewable Energy Development Agency shares added nearly 3% after Q2 loan sanctioned jumps 86%, Escorts Kubota shares gained 5.5% on registering highest ever monthly sales, Lupin shares added 3% on USFDA approval for Rivaroxaban, Jaiprakash Associates shares added nearly 5% post CCI approves acquisition by Jindal Power.
Hi-Tech Pipes shares jumped 4% on posting highest ever sales volumes for Q2, 1HFY25-26, Atlantaa shares zoomed 20% on agreement with IRCON International for contract of Rs 2,485 crore, Nazara Technologies shares added 7% despite 'underperform' rating by CLSA, VST Tillers share price gained 4% after September total sales up 35% at 3,480 units, Kirloskar Brothers shares rose 2.6% on contract win from IOC, Shriram Finance shares rose 5% on report of Mitsubishi UFJ Financial Group (MUFG) to acquire 20% stake.
Nearly 140 stocks touched their 52-week high on the BSE, including L&T Finance, Fortis Healthcare, Muthoot Finance, Jindal Steel, Canara Bank, Tata Investment Corp, RBL Bank, among others. Click to View More
Outlook for October 3
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
After showing eight consecutive sessions of weakness, Nifty witnessed a sustainable bounce back on Wednesday and closed the day higher by 225 points. After opening with a positive note, the Nifty continued with upside for better part of the session. Intraday dips in between have been bought into and the market closed with the decent gains.
A long bull candle has been formed on the daily chart after the range bound action with weak bias of few sessions. This indicates a formation of short- term bottom reversal pattern in the market. Nifty has bounced back sharply from near the crucial support of around 24500-24400 levels (ascending trend line and 200day EMA). This is positive indication.
The larger degree higher tops and bottoms is in store as per daily and weekly timeframe chart and the recent swing low of 24587 could now be considered as a new higher bottom of the sequence.
The short-term trend of Nifty has reversed up firmly on Wednesday with the formation of near-term bottom reversal pattern. The next upside hurdles to be watched around 25000 mark and next 25200 in the next one week. Immediate support is placed at 24600 levels.
Ajit Mishra – SVP, Research, Religare Broking
Markets rebounded sharply on Wednesday, snapping an eight-session losing streak on the back of firm domestic cues. The benchmark index opened higher, supported by buying across large-cap counters, and scaled an intraday high near 24,867.95 before trimming some gains to finally settle at 24,836.30. Sectoral performance was broad-based, with financials and other rate-sensitive sectors leading the advance, followed by pharma, realty, and IT. The broader markets also participated in the recovery, as both midcap and smallcap indices gained over a percent each, underscoring improved risk appetite among investors.
The rebound was fueled by the Reserve Bank of India’s Monetary Policy Committee keeping the repo rate unchanged at 5.5%, in line with expectations, while signaling confidence in the domestic economic outlook. Additional support came from easing crude oil prices and sustained strength in global equities. Stability in the rupee against the US dollar and a decline in India VIX further reflected subsiding near-term volatility, encouraging incremental risk-taking.
That said, participants should avoid reading too much into a single-day rebound and wait for stability above 24,900 to confirm a sustained recovery, with immediate support now placed in the 24,600–24,700 zone.
For the next session, focus will remain on rate-sensitive sectors, particularly banking, financials, and auto, while metals and energy could also offer selective buying opportunities. Amid all, traders should avoid getting carried away and stick to a stock-specific approach.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decision.
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