India’s Equity Benchmarks Open Flat After Four-Day Rally

Market Update at 10:20 AM: India’s equity benchmarks opened little changed on Wednesday, following a four-day streak of gains, as financial stocks paused after a rally fueled by optimism over strong pre-earnings updates and the Reserve Bank of India’s (RBI) lending reforms.

The Nifty 50 eased 0.01 per cent to 25,105.15, while the BSE Sensex added 0.06 per cent to 81,977.69 as of 9:16 a.m. IST. Broader Small-Cap and Mid-Cap indices traded largely flat.

Heavyweight financials and banking stocks fell about 0.3 per cent each, after posting gains over the last six sessions. Last week, the RBI allowed banks to fund acquisitions and raised the cap on loans for buying shares at initial public offerings (IPOs) as part of measures to boost lending.

Positive pre-earnings updates from banks for the September quarter further supported the market. These factors contributed to the Nifty 50 and Sensex rising about 2 per cent each over the past four sessions.

Pre-Market Update at 7:30 AM: Equity benchmark indices Sensex and Nifty 50 are expected to open flat on Wednesday, October 8, following mixed global cues. At 7:06 AM, the GIFT Nifty was trading at 25,212, down by 12 points, indicating a subdued start for domestic equities.

In global developments, Union Minister for Commerce and Industry Piyush Goyal stated that India and the United States continue to hold talks on the proposed bilateral trade agreement (BTA) to meet the November 2025 deadline. Meanwhile, British Prime Minister Keir Starmer has begun a two-day visit to India with over a hundred delegates from the business, culture, and academic sectors to boost cooperation under the recently signed trade deal.

Back home, markets are keeping a close watch on pre-quarterly business updates ahead of the Q2 FY26 earnings season. Analysts expect Indian equities to trade within a range in the near term, with movements likely to be stock-specific and influenced by sectoral trends, festive demand, and upcoming earnings announcements.

In early trade, Asian markets were trading higher, while U.S. markets closed lower overnight as the S&P 500 snapped its seven-day winning streak.

On Tuesday, October 7, Foreign Institutional Investors (FIIs) turned net buyers after ten consecutive sessions of selling, purchasing equities worth Rs 1,440.66 crore. Domestic Institutional Investors (DIIs) were also net buyers for the 30th straight session, investing Rs 452.57 crore.

On October 7, the Nifty 50 extended gains for the fourth session, closing 34.35 points or 0.12 per cent higher at 25,108.30, while the Sensex rose 136.63 points or 0.17 per cent to 81,926.75. Financial stocks led the gains, supported by positive pre-earnings updates and recent RBI lending reforms. Among sectoral indices, six of eleven ended higher, with Nifty Financial Services and Bank Nifty up 0.24 per cent each. HDFC Bank and ICICI Bank gained nearly 1 per cent each, aiding the uptrend.

Broader markets outperformed, as both Nifty Midcap and Nifty Smallcap indices ended higher. Investor interest was also visible in the primary market, where Tata Capital and LG Electronics India issues opened for subscription.

US markets ended lower on Tuesday as investors booked profits after recent gains. The Dow Jones Industrial Average fell 91.99 points or 0.20 per cent to 46,602.98. The S&P 500 dropped 25.69 points or 0.38 per cent to 6,714.59, while the Nasdaq Composite declined 153.30 points or 0.67 per cent to 22,788.36.

Japanese real wages fell 1.4 per cent year-on-year in August, marking the eighth consecutive month of decline, reflecting pressure on household purchasing power. The U.S. dollar strengthened to its highest level in six weeks, with the dollar index rising 0.50 per cent to 98.616.

Gold prices surged to a new all-time high, nearing the USD 4,000 per ounce mark. Spot gold rose 0.3 per cent to USD 3,995.14 per ounce, after hitting an Intraday high of USD 3,999.09. On the MCX, gold futures settled at Rs 1,21,111 per 10 grams, up by Rs 862 or 0.72 per cent.

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

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