After a long bearish run, Indian stock market rebounded in Wednesday’s trading session, October 1, with key benchmark indexes gaining nearly 1%. The rally was led by banking heavyweights, reacting to multiple measures announced by the RBI in its MPC meeting, aimed at boosting liquidity while keeping the repo rate unchanged for the second consecutive time.
The Nifty 50 closed 0.92% higher at 24,836, while the S&P BSE Sensex edged up 0.89% to 80,983 points. Broader markets also posted strong gains, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rallying 0.89% and 1.11%, respectively.
Sector-wise, Nifty Media led the session, surging 3.97%, followed by Nifty Private Bank and Nifty Pharma, which rose 1.97% and 1.30%, respectively. The Nifty Realty Index also recovered strongly, gaining 1.10%, while Nifty Auto scaled 0.85%. The Nifty PSU Bank index was the only laggard, dropping 0.37%.
The central bank maintained the repo rate at 5.5% for the second straight policy meeting, after 100 basis points of rate cuts in the first half of 2025, as it waited to see the impact of frontloaded rate cuts and consumption tax cuts amid lingering trade worries.
Despite ongoing global economic and trade concerns, the RBI forecasts 6.8% growth for the current fiscal year. Central bank governor Sanjay Malhotra noted that while growth is strong, it remains below the near-8% “aspirations.”
Banks and autos lead rebound rally
Banking and auto stocks led the charge in Wednesday’s rebound rally, with Kotak Mahindra Bank, Axis Bank, and ICICI Bank gaining between 2% and 4%. As part of its ongoing measures, the RBI announced 22 steps on Wednesday, many aimed at improving the flow of credit. Bank loan growth has remained sluggish despite a strong economy, expanding at 10% year-on-year as of September 5, 2025.
The RBI proposed several measures to ease lending and support credit flow. It plans to withdraw the 2016 framework that limited bank loans to large corporates, allowing higher lending against listed debt and raising limits for equity and IPO financing.
Risk weights for infrastructure loans by non-bank lenders will be lowered, boosting investments in roads and bridges. Implementation of expected credit loss rules and Basel III norms has been deferred to April 2027, with full compliance required by March 2031. Draft rules for credit risk will also ease capital requirements for small businesses and home loans.
Among the other top gainers, Sun TV Network, Netweb Technologies, and AIA Engineering rallied 15.2%, 11.3%, and 6.1%, respectively.
Auto stocks also had a stellar run, many reacting to their September sales updates. Tata Motors surged 5.6%, while Escorts Kubota and Ather Energy advanced up to 6%.
Meanwhile, other Tata Group stocks such as Trent and Tata Technologies strengthened by over 3%. Shipbuilding stocks like Cochin Shipyard and Garden Reach Shipbuilders also rose, gaining 4% and 4.6%, respectively.
Additionally, Sammaan Capital extended its bull run for the sixth straight session, climbing another 5.42% to ₹169.58 apiece, while Vodafone Idea jumped 4.8% to ₹8.5 apiece. Metal stocks, including Adani Enterprises, Jindal Stainless, and APL Apollo Tubes, also ended higher, gaining between 3% and 3.5%.
Delhivery, NLC India among top losers
Although the market staged a strong recovery, some stocks failed to participate in the rally and closed with losses. Delhivery was among the laggards, slipping 3.5% to ₹434 apiece, while NLC India also ended lower by 2.9% at ₹277.1 apiece.
Other notable losers included OneSource Specialty, ITC Hotels, Aditya Birla Real Estate, KEC International, Bajaj Holdings & Investments, HPCL, Cummins India, and Ola Electric Mobility — all of which declined by over 2%.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
