Last Updated on October 1, 2025 9:52 pm by BIZNAMA NEWS
AMN / BIZ DESK
After eight straight sessions of losses, Indian equities staged a strong recovery on Wednesday, powered by gains in financials and auto stocks. Investor sentiment turned upbeat as the Reserve Bank of India (RBI) held key interest rates steady and signalled confidence in inflation trends.
The BSE Sensex jumped 715 points to close at 80,983, while the NSE Nifty 50 advanced 210 points to end at 24,836. Broader markets mirrored the gains, with both the Nifty Midcap 100 and Smallcap 100 indices finishing in the green.
Banking and Financials Lead the Rally
The sharpest upmove came from the banking and financial services pack, which saw renewed buying after weeks of pressure. The Nifty Bank index surged 1.3%, led by private sector lenders such as HDFC Bank and ICICI Bank. Non-banking finance companies also joined the party, with Shriram Finance and Bajaj Finance advancing smartly.
Market experts noted that the RBI’s neutral policy stance, coupled with easing bond yields, gave investors confidence that borrowing costs may remain stable in the near term — a positive for lenders and credit-driven businesses.
Autos Accelerate on Festive Demand Outlook
The auto sector was another strong performer, with the Nifty Auto index up nearly 1.5%. Tata Motors was the standout gainer, rallying over 5% on expectations of strong festive sales and positive commentary around its EV portfolio. Maruti Suzuki and Mahindra & Mahindra also saw healthy buying interest, supported by upbeat monthly sales data.
Mixed Bag in IT and PSU Banks
Technology stocks witnessed selective gains, with Tech Mahindra outperforming its peers. However, the broader IT index remained subdued as investors weighed slowing global demand for software services.
Public sector banks were the day’s laggards, with the PSU Bank index slipping around 0.5%. Analysts said concerns over asset quality and muted earnings prospects kept traders cautious in this pocket.
Outlook: IPOs and Global Cues in Focus
Analysts believe the bounceback could extend if global cues remain supportive. Investors are also eyeing a busy IPO pipeline, with several large issues expected this quarter, potentially drawing fresh liquidity into markets.
However, volatility cannot be ruled out amid global uncertainties, including the U.S. government shutdown and shifting expectations around Federal Reserve policy.
For now, Wednesday’s rally has reassured investors that domestic fundamentals remain intact, with banks and consumer-driven sectors poised to drive momentum in the coming weeks.
