Weekly Stock Market Review: RBI Policy, US Shutdown, Top Gainers & Losers

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Markets kicked off October on a strong note, with benchmark indices gaining nearly 1% during the truncated trading week. Here's our take on this week gone by, some stories you might have missed out on, and our thoughts on what to do going ahead, in your weekly stock market report.

Regaining Footing

  • Investors had more to cheer as the week progressed, with the markets staging a late recovery to close 0.97% higher than last Friday.
  • Broader markets outshone the benchmarks in the holiday-shortened week — the BSE Mid-cap and Small-cap indices advanced 2% while the BSE Large-cap index gained 1.2%.
  • After edging higher last week and on Monday, the India VIX — the market’s fear gauge — plunged 12% over the week, signalling improved investor confidence.

The Big Stories

  • The RBI kept the repo rate unchanged at 5.5% for the second consecutive policy meet, resisting pressure for a rate cut that some expected could cushion the potential impact of US tariffs. 
  • Overseas, markets reacted to the US federal government shutting down after Republicans and Democrats failed to agree on a funding deal.

The Winners

  • Shriram Finance surged 6.6% as reports emerged that Japan’s Mitsubishi Financial Group is in talks to acquire a $2.6 billion stake in the NBFC.
  • Tata Motors rallied 6.4% as its UK-based Jaguar Land Rover plant resumed production following a weeks-long shutdown caused by a cyberattack.

The Losers

  • Maruti Suzuki emerged as the week’s top laggard, slipping 2.9% despite reporting a 3% y-o-y rise in September sales volumes.
  • Eicher Motors fell 1.5% during the week, weighed down by mixed technical signals and profit-booking by investors.

Meanwhile…

  • In a move set to boost market liquidity, the RBI rolled out reforms aimed at making it easier for NRIs to trade, invest and remit funds in and out of India. More details here.
  • In the UK, GDP growth slowed to 0.3% in the second quarter after a relatively strong start to the year, as persistently high food prices kept inflation sticky.

Market Brief

Key Indices
Sectors
Stocks
Other Key Data

Market Outlook

Market Outlook
Sectors To Watch
Stocks in Radar: Axis Bank, Canara Bank, Bank of Baroda, DCB Bank, ONGC

Our Take

  • Markets reflected mixed sentiment last week, but the second-half rally highlighted how the bulls regained control on D-Street.
  • For the week ahead, we expect the Nifty to trade in a neutral-to-bullish range between 24,600 and 25,100 levels. 
  • The 24,600–24,800 zone is likely to serve as a strong support. Holding above this range should keep the pullback momentum intact, while a slip below 24,600 could shift sentiment to the downside.

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