Nifty, Sensex End Week With Nearly 1% Gains; Nifty Metals Hit All-time High

Market Update at 4:05 PM: Indian equity benchmark indices ended higher on Friday, October 3, closing the week with gains of nearly 1 per cent. The Sensex rallied 223.86 points, or 0.28 per cent, to end at 81,207.17, while the Nifty 50 advanced 57.95 points, or 0.23 per cent, to settle at 24,894.25. India’s volatility index, India VIX, slipped over 2 per cent to close at 10, reflecting improved market sentiment.

The rally was led by heavyweight contributions from Larsen & Toubro, Bharti Airtel, and Axis Bank. 

On the sectoral front, 9 out of 11 major indices closed in the green. The Nifty Metal index outperformed with a sharp gain of 1.82 per cent, hitting a fresh all-time high. The rally was supported by global supply disruptions at Freeport’s Grasberg mine in Indonesia and dollar weakness on hopes of a potential US rate cut in October. 

The Nifty PSU Bank index also surged over 1 per cent, with 11 of its 12 constituents ending positive. However, the Nifty Auto and Nifty Realty indices slipped marginally by 0.06 per cent and 0.12 per cent, respectively.

Broader markets also participated in the uptrend. The Nifty Midcap 100 index climbed 0.83 per cent, marking its sharpest Intraday rise since September 1, while the Nifty Smallcap 100 index gained 0.69 per cent. 

Market breadth remained positive as 2,142 stocks advanced, 960 declined, and 83 were unchanged on the NSE. A total of 93 stocks touched their 52-week highs, while 52 hit their 52-week lows. Additionally, 132 stocks were locked in their Upper Circuits, and 63 hit Lower Circuits.

In stock-specific action, Coal India fell over 1 per cent after reporting a year-on-year decline in September production and lower offtake. Nuvama Wealth gained over 4 per cent after receiving regulatory approval to set up a Mutual Fund business. PC Jeweller surged more than 5 per cent after reporting a 63 per cent rise in standalone revenue and a 23 per cent reduction in bank debt in its Q2 business update.

For Nifty 50, the top positive contributors were Larsen & Toubro (+18.59 points), Bharti Airtel (+17.41 points), and Axis Bank (+14.67 points). On the downside, Reliance Industries (-7.97 points), ICICI Bank (-10.89 points), and Max Healthcare Institute (-7 points) weighed on the index.

Market Update at 12:30 PM: Indian benchmark indices, Sensex and Nifty, traded flat on Friday as persistent selling by foreign institutional investors (FIIs) weighed on market sentiment. This came despite positive global cues and support from the Reserve Bank of India’s dovish policy stance.

At 12:00 PM, the BSE Sensex was at 80,974.57 levels, down by 8.7 points. Similarly, the NSE Nifty50 slipped 10.65 points or 0.04 per cent to 24,825 levels.

In the broader markets, the Nifty MidCap 100 gained 0.33 per cent, while the Nifty SmallCap 100 rose 0.31 per cent.

Among individual stocks on the BSE, Tata Steel, Kotak Mahindra Bank, Axis Bank, Eternal, and Bharat Electronics were Top Gainers. On the other hand, Bajaj Finserv, Sun Pharma, Maruti, Bajaj Finance, and Mahindra & Mahindra were among the leading drags.

On the NSE, Tata Steel, Axis Bank, and Tata Motors advanced, while Max Health, Eicher Motors, and HDFC Bank declined.

From a sectoral perspective, Nifty Metal gained 0.95 per cent, PSU Bank added 0.48 per cent, and Pharma rose 0.34 per cent. The FMCG index was the biggest laggard, falling 0.45 per cent.

Market Update at 9:45 AM: India's equity benchmarks opened slightly lower on Friday, as heavy-weight financial stocks retreated following a sharp uptick on Wednesday. The positive momentum earlier came after the Reserve Bank of India (RBI) announced a dovish pause and introduced reforms to enhance bank lending to capital markets and large corporates.

At 9:17 a.m. IST, the Nifty 50 was down 0.26 per cent at 24,768.5, while the BSE Sensex shed 0.27 per cent to 80,773.54. Nine of the 16 major sectors logged losses at the opening bell, led by financials, which fell 0.4 per cent, dragging the benchmark indexes lower. Financial stocks had gained 1.4 per cent on Wednesday following the RBI’s easing of lending rules.

Consumer stocks declined 0.6 per cent, making them the biggest sectoral losers by percentage. Meanwhile, the broader market showed minor gains, with Small-Cap stocks rising 0.1 per cent and Mid-Cap stocks up 0.3 per cent. Indian financial markets were closed on Thursday due to a local holiday.

Pre-Market Update at 7:45 AM: Equity benchmark indices Sensex and Nifty 50 are expected to open muted on Friday, October 3, following mixed global cues. At 7:13 AM, the GIFT Nifty was trading at 24,941, down by 9 points.

Indian markets had recovered sharply on Wednesday after falling for eight consecutive sessions. The momentum is expected to continue, supported by accommodative monetary policy, favourable monsoon conditions, and higher festive demand. Early Asian trade showed gains, while Wall Street closed at record highs overnight.

On October 1, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 1,605.20 crore, extending their selling streak to eight consecutive days. In contrast, Domestic Institutional Investors (DIIs) remained net buyers for the 27th straight session, purchasing equities worth Rs 2,916.14 crore.

On the same day, Indian indices recorded their sharpest intraday gains since August 18, breaking an eight-day losing streak. The Nifty 50 rose 243.15 points, or 0.99 per cent, to 24,836.30, while the Sensex climbed 715.70 points, or 0.89 per cent, to close at 80,983.31. Financial stocks led the rally after the Reserve Bank of India kept policy rates unchanged and introduced regulatory relaxations on lending and corporate acquisitions. 

The RBI revised India’s FY26 GDP growth forecast to 6.8 per cent while lowering CPI inflation to 2.6 per cent. India VIX slipped over 7 per cent to fall below 11, signalling reduced volatility. Sector-wise, 10 of 11 major indices closed higher, with Nifty Financial Services up 1.38 per cent and Bank Nifty rising 1.3 per cent. Broader markets also strengthened as Nifty Midcap and Smallcap indices gained.

On Thursday, Wall Street’s key indices closed at record highs for the second consecutive session. The Dow Jones Industrial Average rose 78.62 points, or 0.17 per cent, to 46,519.72. The S&P 500 added 4.15 points, or 0.06 per cent, to 6,715.35, while the Nasdaq Composite advanced 88.89 points, or 0.39 per cent, to 22,844.05. 

Technology stocks supported the gains as investors tracked private employment data amid the ongoing US government shutdown. Weak labour market indicators strengthened expectations of two more Federal Reserve rate cuts this year, one likely in late October. However, the release of September’s nonfarm payroll data has been delayed due to the shutdown.

US President Donald Trump stated he would meet with White House Budget Director Russell Vought to discuss potential cuts to the federal workforce, increasing pressure on Democrats to resolve the shutdown, which entered its second day.

Gold prices edged higher in Asian trade as shutdown risks raised expectations of further Fed rate cuts. Spot gold was at USD 3,850.60/oz, down 0.07 per cent as of 7:08 AM IST. The dollar index remained steady but was on track for a 0.35 per cent weekly decline, its largest since early August. Crude oil prices gained modestly but were still heading for their biggest weekly fall since June. Brent crude rose 0.45 per cent to USD 64.40 a barrel, while WTI crude increased 0.46 per cent to USD 60.76.

For today, RBL Bank and Samaan Capital will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.