The RBI’s Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.5%, maintaining a Neutral stance. While GDP growth for FY25-26 stayed firm at 6.5%, the big surprise was a sharp cut in CPI inflation forecast to 3.1% from the earlier 3.7%.
The move lifted market sentiment instantly. The BSE Sensex closed at 80,983.21, up 715.7 points (0.9%), while the Nifty50 ended at 24,836.3, gaining 225.2 points (0.92%).
In broader action, the Nifty SmallCap 100 rose 1.1% and Nifty MidCap 100 added 0.89%, signalling a strong recovery beyond just large-caps.
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Impact on the stock market
Sector-wise performance
- Nifty Bank: +1.3%
- Auto: +0.85%
- Realty: +1.1%
Almost every other sector joined the party, with Financial Services, Energy, FMCG, IT, Media, Metals, Pharma, Consumer Durables, and Oil & Gas rising up to 4%. The lone laggard was Nifty PSU Bank (-0.37%).
| Sector/Index | Performance |
| IT & BPM sector | 0.74% |
| Healthcare sector | 1.27% |
| Oil & Gas sector | 0.21% |
| Real estate sector | 1.10% |
| PSU Bank in India | -0.37% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Tata Motors | 718.35 | 5.61 |
| Shriram Finance | 648.70 | 5.29 |
| Kotak Mahindra | 2,063.30 | 3.54 |
| Adani Enterpris | 2,591.40 | 3.41 |
| Trent | 4,832.00 | 3.30 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| UltraTechCement | 12,084.00 | -1.13 |
| Bajaj Finance | 987.70 | -1.12 |
| SBI | 864.10 | -0.96 |
| Tata Steel | 167.51 | -0.75 |
| Asian Paints | 2,335.80 | -0.60 |
Market aftermath: Impact on stocks
Pharma finds relief with Pfizer–Trump deal
Pharma stocks finally snapped their seven-day losing run, thanks to a surprise deal between Pfizer and Donald Trump, which eased concerns about US drug tariffs.
- Sun Pharma jumped nearly 3% to ₹1,639, with Citi setting a bullish target of ₹2,180.
- Lupin climbed 3.5% after getting USFDA approval for its generic Rivaroxaban suspension (an anti-blood clot drug) to be made in Maharashtra. Estimated US sales? $11 million annually.
- Laurus Labs and Piramal Pharma also added healthy gains.
- Pfizer India rose 2% after its parent agreed to lower some prescription drug prices under the Medicaid programme.
Brokerages said this could open new doors for Indian contract manufacturing players, especially those with US facilities.
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KPIT Tech reassures after steep fall
After tumbling 10% on September 30, KPIT Tech bounced back 3% as management reassured investors there was no threat to client renewals or margins.
- JPMorgan maintained an Overweight call with a revised target of ₹1,400.
- Goldman Sachs trimmed its view to ₹1,100, citing delayed deal impact but still backing KPIT’s long-term strength in mobility and acquisitions.
Shriram Finance, IREDA, and more
- Shriram Finance climbed 5% after reports that Japan’s MUFG may buy a 20% stake.
- IREDA gained nearly 3% as Q2 loan sanctions jumped 86% year-on-year.
- Atlantaa zoomed 20% after bagging a contract worth ₹2,485 crore from IRCON International.
- Nazara Technologies rose 7% despite an “underperform” rating by CLSA.
- Nearly 140 stocks hit fresh 52-week highs, including L&T Finance, Fortis Healthcare, Jindal Steel, Canara Bank, Tata Investment Corp, and RBL Bank.
Crude oil: India keeps balancing act
India’s oil diplomacy was back in focus. Russian oil imports dipped to 1.61 million barrels/day in September, down from 1.72 million in August, still making up one-third of total imports.
The US has ramped up pressure, slapping a 50% levy on Indian goods to push New Delhi away from Russian oil. But India remains firm, with FM Nirmala Sitharaman saying the country will buy “what suits us best.”
Despite narrowing discounts in August, recent deals offered a $3 per barrel discount on Russia’s Urals crude, keeping it India’s cheapest option. India is also exploring higher US energy imports to balance geopolitics with economics.
Conclusion
The first day of October brought much-needed relief to investors. From the RBI’s policy stability to pharma’s rebound and big corporate deal wins, the market found multiple triggers to break its losing streak.
But here’s the catch: analysts warn not to get carried away. Nifty needs to hold above 24,900 for a sustained rally, with near-term support pegged at 24,600–24,700.
For now, optimism is back—but with global volatility, crude oil dynamics, and earnings season ahead, the real test of this rebound is yet to come.
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