Benchmark indices opened slightly lower on Friday morning, with the Nifty 50 starting at 24,759.55, down from the previous close of 24,836.30. By 10:25 AM, the index was trading at 24,787.60, reflecting a decline of 48.70 points or 0.20%.
The Sensex opened at 80,684.14, compared to its last closing figure of 80,983.31, and was at 80,866.04, lower by 117.27 points or 0.14%. This subdued opening occurred despite positive momentum resulting from the Reserve Bank of India’s recent monetary policy decision to keep the repo rate unchanged at 5.5% while also upgrading growth forecasts.
“The central bank maintained the repo rate at 5.5% but adopted a growth-friendly stance by reducing its inflation forecast for FY26 to 2.6% from 3.1% and raising the GDP growth outlook to 6.8% from 6.5%,” stated Ponmudi R., CEO of Enrich Money. “This combination of stable rates, easing inflation, and elevated growth expectations has bolstered confidence across sectors.”
In early trading, metal stocks emerged as top performers, with Tata Steel surging 3.32% to ₹173.07 and Hindalco gaining 2.14% to ₹782.35. The banking sector also experienced significant buying interest, with Kotak Mahindra Bank rising 1.76% to ₹2,099.60 and Axis Bank climbing 1.52% to ₹1,177.10. Bharat Electronics Limited rose 1.65% to ₹413.20.
Ponmudi added, “Private banks and financials are anticipated to lead the next phase of the rally, as a range of new credit-enhancing measures introduced alongside the RBI policy are likely to open new growth channels and improve credit growth.”
On the downside, Max Healthcare led the decliners, falling 2.67% to ₹1,083.50, followed by Bajaj Finserv and Eicher Motors, which dropped 1.86% to ₹1,969.60 and ₹6,891.00, respectively. Shriram Finance declined by 1.77% to ₹637.25, while Coal India fell 1.56% to ₹382.45.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted, “The Nifty is currently eyeing the 25,000 mark as the next hurdle, supported by positive global cues, DII inflows, and a notable drop in India VIX to 10.29 levels.”
In terms of institutional flows, Foreign Institutional Investors sold equities worth ₹1,605 crore on October 1, while Domestic Institutional Investors acquired equities worth ₹2,916 crore on the same day.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, remarked, “The positive effects of the central bank’s decisive initiatives to increase credit growth in the economy have the potential to sustain market momentum, particularly in Bank Nifty.” He added that “fairly valued large-cap banks represent attractive buying opportunities from a medium- to long-term perspective.”
In the commodities market, crude oil prices decreased by 2.79% to $60.63, marking a four-month low. Rahul Kalantri, VP Commodities at Mehta Equities Ltd, noted, “Prices reached a four-month high at the beginning of the week but then retreated to four-month lows due to the prospect of larger output increases by OPEC+ in its upcoming meeting on October 5.”
Gold prices experienced profit-taking from record highs, with Darshan Desai, CEO of Aspect Bullion & Refinery, observing that “gold saw mild profit-taking on Thursday, following a sharp rally of nearly 50% so far this year.” He suggested that at these elevated levels, investors might consider booking partial profits with an aim to re-enter on any price correction.
Technical analysts highlighted key support and resistance levels for the trading session. Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking Private Limited, mentioned, “The Nifty 50 opened on a strong footing in the previous session and maintained bullish momentum.” She noted that “a sustained move above 24,900 could pave the way for a rally targeting 25,000 and 25,150.”
Ponmudi cautioned that “although the Nifty opened lower than the previous session’s close, it managed to hold just above its 100-day EMA at 24,745, which is a crucial balance line for the market.” He warned that “as it is the last trading day of the week, profit booking should not be ruled out, particularly by short-term traders in sectors and stocks that have shown strong momentum in recent days.”
Published on October 3, 2025.
