The Sensex closed at 82,693.71, up 313.02 points (0.38%), and the Nifty rose to 25,330.25, up 91.15 points (0.36%).
The broader market also gained traction. The Nifty Smallcap 100 rose 0.7%, while the Nifty Midcap 100 inched higher.
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Impact on the stock market
Sector-wise performance
PSU Banks extended their rally for the third straight day, following remarks from a senior finance ministry official confirming that the government would retain majority ownership. Bank of Maharashtra, Indian Bank, and Punjab National Bank were among the top gainers.
Auto, oil & gas, IT, and realty indices rose by up to 1%, contributing to the broader market momentum.
On the flip side, FMCG, metal, pharma, and consumer durables stocks faced selling pressure. Key losers included Britannia Industries, Jindal Steel, Whirlpool of India, and Gland Pharma, which fell by as much as 2%.
| Sector/Index | Performance |
| IT & BPM sector | 0.65% |
| Healthcare sector | -0.10% |
| Oil & Gas sector | 0.63% |
| Real estate sector | 0.41% |
| PSU Bank in India | 2.61% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| TATA Cons. Prod | 1,136.30 | 4.05 |
| SBI | 857.15 | 3.08 |
| Bharat Elec | 411.20 | 2.06 |
| Maruti Suzuki | 15,801.00 | 1.46 |
| Kotak Mahindra | 2,050.30 | 1.41 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| Bajaj Finserv | 2,057.00 | -1.12 |
| HDFC Life | 766.10 | -1.07 |
| ITC | 409.10 | -0.97 |
| Titan Company | 3,523.00 | -0.95 |
| SBI Life Insura | 1,804.00 | -0.81 |
Market aftermath: Impact on stocks
SBI completes Yes Bank stake sale; shares gain 1.5%
State Bank of India (SBI) shares continued their upward trajectory, trading at around Rs 843, up 1.5%, as the bank completed the sale of 13.18% stake in Yes Bank to Sumitomo Mitsui Banking Corporation (SMBC) for nearly Rs 8,889 crore.
This transaction, the largest cross-border investment in the Indian banking sector, positions SMBC as the single-largest shareholder in Yes Bank. Post-sale, SBI retains 10.8% stake in Yes Bank.
SBI Chairman Challa Sreenivasulu Setty commented, “Yes Bank’s transformation since 2020 has been a successful public-private collaboration. SMBC’s global expertise will complement Yes Bank’s ongoing growth and ambitions.”
Meanwhile, Yes Bank shares dipped slightly, trading at around Rs 20.94.
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Defence stocks rally for the fourth consecutive day
Defence shares extended their rally on strong investor interest following the Defence Ministry’s approval of the new Defence Procurement Manual (DPM) 2025. The manual aims to expedite revenue procurement, encourage domestic industry participation, and modernise procurement for contemporary defence needs.
- Garden Reach Shipbuilders & Engineers (GRSE) led the rally with a 7.5% jump, closing at Rs 2,624, after rebounding from two days of decline.
- Cochin Shipyard gained 2.5% to Rs 1,866, while Bharat Electronics Ltd (BEL) rose 2.16% to Rs 411.45, benefiting from new orders worth Rs 712 crore, including IT infrastructure, cybersecurity solutions, communication equipment, and spares.
The Nifty India Defence index climbed 2%, marking a 7.3% gain over the last four sessions, with all 18 constituent stocks in positive territory.
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IT stocks rise on hopes of US Fed rate cut
The Nifty IT index rose 0.8%, driven by expectations of a US Federal Reserve rate cut, which could boost discretionary spending in North America, a key market for Indian IT firms.
- Persistent Systems was the top gainer, surging 2% to Rs 5,605.
- Mphasis and LTI Mindtree gained over 1% each, while Coforge, TCS, and Infosys rose around 0.8%.
- Tech Mahindra, HCL Tech, and Wipro saw modest gains of around 0.4%.
Additionally, LIC increased its stake in Tech Mahindra from 8.84% to 10.84%, signaling institutional confidence in the IT sector.
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Crude oil update
Crude oil prices traded lower as markets closely watched the US Federal Reserve’s policy decision.
- Brent crude was at $68.35/barrel, down 0.18%, while WTI crude was at $64.42/barrel, down 0.15%.
- In India, MCX September crude futures traded at ₹5,657, down 0.65%, and October futures at ₹5,645, down 0.63%.
Market participants largely expect a 25-basis point rate cut, though some anticipate a 50-bps reduction, which could stimulate global demand for fuels.
Other commodities saw mixed movements:
- September mentha oil futures down 0.80% to ₹997.20.
- September cottonseed oilcake up 1.13% to ₹3,030.
- October dhaniya futures up 0.51% to ₹8,348.
Global developments also influenced commodity prices. European Commission President Ursula von der Leyen announced further economic measures against Russia, including sanctions targeting crypto, banks, and energy, in response to the ongoing conflict in Ukraine.
Conclusion
Overall, the Indian stock market witnessed a positive session, with gains spread across PSU banks, auto, IT, and defence sectors, while FMCG, pharma, and metals lagged.
Key highlights include:
- SBI’s successful Yes Bank stake sale strengthened cross-border investor confidence.
- Defence stocks rallying post new procurement reforms.
- IT sector gains fueled by anticipation of US rate cuts.
- Crude and commodities showing caution as global macro factors weigh in.
As investors await the US Fed policy outcome later today, market participants will closely watch how sectors like banking, IT, and commodities respond to the rate decision, shaping the short-term trajectory for the Indian market.
The day’s trading underlines a mix of domestic policy support, global economic cues, and strategic sectoral gains, providing a clear narrative that markets are looking forward to green shoots of growth, yet remain alert to global macro uncertainties.
For more stock market insights, check out the StockGro blog.
