The equity benchmark indices ended an eight-session losing streak ahead of a market holiday, following the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) decision to maintain the repo rate at 5.50 percent, while adopting a neutral policy stance. Additionally, the RBI introduced relaxed norms for acquisition-related lending, which boosted financial stocks.
Vinod Nair, Head of Research at Geojit Investments, noted that the broad-based rally was largely anticipated, but the RBI’s more constructive tone compared to June improved investor sentiment. He added, “The dovish stance, along with an upward revision of India’s GDP growth forecast from 6.5 percent to 6.8 percent, reinforced confidence. Support also came from five targeted measures aimed at easing lending, including relaxed capital market exposure norms and enhanced infrastructure financing.”
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, pointed to easing crude oil prices and strong global equities as additional factors supporting the rally. He remarked on the stability of the rupee against the US dollar and a decline in India VIX, which indicated a reduction in near-term volatility and encouraged more risk-taking by investors.
The Sensex closed 715.69 points, or 0.89 percent, higher at 80,983.31, after reaching an intraday high of 81,068.43. The Nifty 50 rose by 225.20 points, or 0.92 percent, to finish at 24,836.30, also achieving its largest single-day gain since August 18, 2025, as emphasized by Vinay Rajani, Senior Technical & Derivative Research Analyst at HDFC Securities.
The smallcap index outperformed the midcap index, with an overall increase of just over 1 percent. With the exception of the Nifty PSU Banks index, all sectoral indices closed in the positive territory, led by banking and media stocks. Auto stocks gained due to robust sales data, while pharma, real estate, and IT sectors also saw significant increases.
The Bank Nifty increased by more than 1 percent, propelled by optimism surrounding improved lending capabilities and lower risk weights for infrastructure loans, benefiting the asset quality of non-banking financial companies (NBFCs) and banks. Abhinav Tiwari, a Research Analyst at Bonanza, suggested that the constructive outlook combined with international stability—such as a steady rupee and positive global cues—encouraged broader market participation, particularly in the autos and real estate sectors.
Top Gainers & Losers
Among Sensex stocks, Tata Motors, Shriram Finance, Kotak Mahindra Bank, Trent, Axis Bank, and Adani Enterprises were among the top gainers, while Bajaj Finance, SBI, UltraTech Cement, Tata Steel, and Bajaj Auto faced the steepest declines. Tata Motors led the gainers following its announcement of the record date for the demerger of its commercial vehicle segment and its September sales figures.
The market breadth remained strongly positive, with 2,797 stocks advancing, 1,360 declining, and 134 unchanged out of 4,291 stocks traded on the BSE. About 150 stocks reached their 52-week highs, while 120 hit their 52-week lows. A total of 10 stocks hit the upper circuit limit, and 7 hit the lower circuit.
Overall, the market rebound indicates improving sentiment and potential signs of a shift in market direction. Shares of major banks such as Kotak Mahindra, Axis Bank, ICICI Bank, HDFC Bank, IndusInd, and Bank of Baroda were also significant contributors to the Nifty bank index’s gains.
Midcap & Smallcap Movers
In the midcap sector, KPIT Technologies, Vodafone Idea, Nykaa, Cochin Shipyard, HUDCO, and OFSS rose by 4-5 percent, while ITC Hotels, Hindustan Petroleum, Cummins, and Indian Bank saw declines of nearly 2 percent.
In the smallcap segment, stocks like Neuland Laboratories, GRSE, PPL Pharma, Laurus Labs, IGIL, CreditAccess, and Data Patterns surged by 4-5 percent, while the largest declines were seen in Delhivery, KEC International, Ola Electric, MGL, and Whirlpool.
Notably, shares of Sun TV, Netweb, Nazara Technologies, STL Technologies, and Rategain rallied between 7-15 percent on the BSE, whereas JSW Holdings, Delhivery, NLC India, Maharashtra Scooters, and Aditya Birla Real Estate fell by 2-5 percent.
The domestic market will be closed tomorrow in observance of Mahatma Gandhi Jayanti and Dussehra.
