The key equity benchmarks ended the truncated week with substantial gains, snapping a six-session losing streak. The rally was supported by the Reserve Bank of India’s Monetary Policy Committee, which kept the repo rate unchanged at 5.5%. The central bank lowered its FY26 inflation forecast and raised its GDP growth projection. Broader market outperformed the frontline indices.
Investors will monitor upcoming IPOs, brent crude oil prices, key economic data and global market cues. Additionally, the earnings season will gain attention as TCS is set to kick off the cycle, announcing its results on 9th October 2025.
In the week ended on Friday, 3 October 2025, the S&P BSE Sensex advanced 780.71 points or 0.97% to settle at 81,207.17. The Nifty 50 index added 239.55 points or 0.97% to settle at 24,894.25. The BSE Mid-Cap index jumped 2.08% to close at 45,678.11. The BSE Small-Cap surged 2.09% to end at 53,374.98.
Weekly Index Movement:
The headline equity indices ended marginally lower on Monday, extending their losing streak to a seventh straight session. The S&P BSE Sensex slipped 61.52 points, or 0.08%, to 80,364.94. The Nifty 50 declined 19.80 points, or 0.08%, to 24,634.90. Over the seven sessions, the Sensex has dropped 3.19% and the Nifty has lost 3.10%.
Equity benchmarks closed with minor losses on Tuesday, marking the eighth straight day of decline. The S&P BSE Sensex declined 97.32 points or 0.12% to 80,267.62. The Nifty 50 index lost 23.80 points or 0.10% to 24,611.10. In eight trading sessions, the Sensex has plummeted 3.31% and the Nifty has tumbled 3.20%.
Domestic equity indices ended higher on Wednesday, snapping an eight-day losing streak, after the Reserve Bank of India’s Monetary Policy Committee left the repo rate unchanged at 5.5% The S&P BSE Sensex jumped 715.69 points or 0.89% to 80,983.31. The Nifty 50 index gained 225.20 points or 0.92% to 24,836.30. In the past eight trading sessions, the Sensex plummeted 3.31% and the Nifty tumbled 3.20%.
The stock market remained closed on Thursday, 2 October 2025, on account of Mahatma Gandhi Jayanti and Dussehra.
The key equity indices closed with modest gains on Friday, extending their winning streak to a second session, bolstered by positive sentiment following the Reserve Bank of India’s (RBI) policy decision. the barometer index, the S&P BSE Sensex, jumped 223.86 points or 0.28% to 81,207.17. The Nifty 50 index gained 57.95 points or 0.23% to 24,894.25. In two consecutive trading sessions, the Sensex added 1.17% while the Nifty added 1.15%.
Economy:
The HSBC India Manufacturing PMI was revised down to 57.7 in September 2025 from a preliminary estimate of 58.5, and compared to August’s 17-and-a-half-year high of 59.3. Despite the fall, the figure remained well above the long-term average, signaling continued strength in the sector.
India's industrial output grew by 4% in August as against the growth of 4.3% in July, according to the Index of Industrial Production (IIP) data released by the Ministry of Statistics and Programme Implementation on Monday. Manufacturing activity grew by 3.8% on an annual basis in August, compared to 6% last month. Mining output, another key component of the IIP, rose 6% year-on-year in August versus a fall of 7.2% last month. Electricity production increased 4.1% as against 3.7% in the previous month.
The Reserve Bank of India’s Monetary Policy Committee (MPC) kept the policy repo rate unchanged at 5.5% in its review that concluded on 1 October 2025.
The committee maintained a neutral stance, noting that it was prudent to wait for the impact of past policy measures and for greater clarity on global developments before making further moves. The standing deposit facility (SDF) rate stays at 5.25%, while the marginal standing facility (MSF) rate and the bank rate remain at 5.75%.
The central bank raised its real GDP growth forecast for FY26 to 6.8% from 6.5% earlier, projecting growth at 7% in Q2, 6.4% in Q3, and 6.2% in Q4. For Q1 FY27, growth is expected at 6.4%. On inflation, the RBI cut its CPI forecast for FY26 to 2.6% from 3.1%, with projections of 1.8% in Q2 and Q3, 4% in Q4, and 4.5% in Q1 FY27. Inflation is seen staying contained, though tariff-related developments could weigh on the growth outlook in the second half.
Stocks in Spotlight:
E2E Networks jumped 2.37%. The company’s board approved plans to raise up to Rs 1,000 crore. The funds may be raised through public offerings, rights issues, private placements, or qualified institutional placements. The move is subject to shareholder and regulatory approvals.
Zaggle Prepaid Ocean Services shed 0.64%. The company has entered into a referral partnership agreement with IDFC First Bank to offer forex solutions to its corporate customers.
Prime Focus shares tumbled 3.55%. The US President Donald Trump announced a 100% tariff on foreign-made movies. The company provides post-production and visual effects services to the global media and entertainment industry.
Mahindra & Mahindra (M&M) advanced 1.90%. The company’s overall sales jumped 16% to 100,298 vehicles sold in September 2025 as against 87,839 units sold in September 2024.
Hyundai Motor India declined 4.83%. The company said that it has achieved total monthly sales of 70,347 units in September 2025, which is a 10% increase from 64,201 units in September 2024.
Bajaj Auto shed 0.26%. The company has reported 9% increase in total auto sales for September 2025, selling 5.10 lakh units as against 4.69 lakh units sold in September 2024.
Global Market:
In China, the Chinese Manufacturing Purchasing Managers’ Index came in at 49.8, data from the National Bureau of Statistics showed. While still in contraction, the latest reading was the strongest since March.
The private surveyor RatingDog’s manufacturing purchasing managers’ index came in at 51.2 for September, marking its highest level since May.
In Japan, unemployment edged up to 2.6% in August from 2.3% in the prior month, government data showed.
Reserve Bank of Australia kept policy rate steady at 3.6% as inflation in the country stays at its highest level in more than a year.
Spain’s inflation rate accelerated in September to 3%, up from 2.7% in August.
In U.S., the personal consumption expenditures (PCE) price index rose 0.3% in the month, lifting the annual headline inflation rate to 2.7% from 2.6% in July. Core PCE, which excludes food and energy, increased 0.2% on the month and remained unchanged at 2.9% year-on-year.
The US government has entered its first shutdown since 2019 after Congress failed to pass a stopgap spending bill, triggering the furlough of about 750,000 federal employees and disruption of services. The standoff stems from a clash between President Donald Trump and Democrats over healthcare funding, with neither side backing down. Unlike past shutdowns, the administration has indicated readiness for a prolonged impasse and even suggested making some of the temporary job losses permanent, signalling a strategy that could reshape the federal workforce.