Nifty above 24,800 level; auto shares gear up

The headline equity benchmarks traded with major gains in mid-afternoon trade. The Nifty traded above the 24,800 level. Auto shares extended gains for the second consecutive trading session.

At 14:30 IST, the barometer index, the S&P BSE Sensex, jumped 667.69 points or 0.83% to 80,935.31. The Nifty 50 index gained 212.95 points or 0.87% to 24,819.85.

In the broader market, the S&P BSE Mid-Cap index added 0.66% and the S&P BSE Small-Cap index rose 0.92%.

The market breadth was positive. On the BSE, 2,597 shares rose and 1,444 shares fell. A total of 154 shares were unchanged.

Economy:

The Reserve Bank of Indias 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 RBI noted that the global economy has been stronger than expected in 2025, supported by robust growth in the US and China, though elevated policy uncertainty, sticky inflation in some advanced economies, and volatile financial markets pose risks. In India, GDP expanded 7.8% in Q1 FY26 on the back of resilient consumption and investment, a revival in manufacturing, and steady services growth. Rural demand was buoyed by a good monsoon, while urban demand showed signs of recovery. Looking ahead, healthy agriculture prospects, rising capacity utilization, GST rationalization, and supportive financial conditions are expected to aid growth, though global trade and geopolitical risks remain a drag.

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.

The minutes of the meeting will be published on 15 October, and the next MPC meeting is scheduled for 3-5 December 2025.

Buzzing Index:

The Nifty Auto index rose 0.64% to 26,711.90. The index shed 0.97% in two consecutive trading sessions.

Tata Motors (up 4.9%), Uno Minda (up 1.61%), Mahindra & Mahindra (up 1.25%), Exide Industries (up 0.9%), Bharat Forge (up 0.65%), Eicher Motors (up 0.42%), Sona BLW Precision Forgings (up 0.34%), Bosch (up 0.33%), TVS Motor Company (up 0.27%), and Samvardhana Motherson International (up 0.25%) rose.

On the other hand, Ashok Leyland (down 0.93%), Maruti Suzuki India (down 0.83%) and Hero MotoCorp (down 0.65%) edged lower.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.38% to 6.546 from the previous close of 6.571.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 88.6800 compared with its close of 88.8075 during the previous trading session.

MCX Gold futures for 3 October 2025 settlement rose 0.49% to Rs 116,434.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.26% to 97.57.

The United States 10-year bond yield rose 0.12% to 4.153.

In the commodities market, Brent crude for December 2025 settlement rose 09 cents or 0.14% to $66.12 a barrel.

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