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Why stock market is rising today in india: Indian benchmarks bounced back on Wednesday after eight consecutive sessions of losses; Know key reasons behind today’s rally
Why Is Stock Market Rising Today?
Why Is Stock Market Rising Today? Indian equities rebounded strongly, ending an eight-day losing streak after the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.5% and maintained a neutral stance.
The BSE Sensex closed at 80,983.21, up 715.7 points or 0.9%, while the Nifty50 rose 225.2 points or 0.92% to 24,836.3.
Broader markets also gained, with the Nifty SmallCap 100 index up 1.1% and the Nifty MidCap 100 index rising 0.89%.
Rate-sensitive sectors led the rally, as the Nifty Bank, Auto, and Realty indices climbed 1.3%, 0.85%, and 1.1%, respectively. The only laggard was Nifty PSU Bank, down 0.37%. Other key sectors including Financial Services, Energy, FMCG, IT, Media, Metal, Pharma, Consumer Durables, and Oil & Gas gained up to 4%.
Among Sensex constituents, Tata Motors, Kotak Mahindra Bank, Trent, Sun Pharma, Axis Bank, and ICICI Bank were the top gainers, while Bajaj Finance, Ultratech, State Bank of India, Tata Steel, and Asian Paints dragged the index lower.
The RBI, in its fourth bi-monthly monetary policy for FY26, kept the repo rate steady at 5.5 percent for the second straight meeting and maintained a neutral stance. The central bank also proposed measures to expand banks’ capital market lending, provide greater flexibility in borrower account operations, and remove the regulatory ceiling on lending against listed securities.
Key Drivers of the Market Rebound
- Buying in Bank Shares: Heavy buying in the Bank Nifty and financial services indices lifted market sentiment. Analysts noted that RBI’s measures on capital market lending and banking operations encouraged investor confidence.
- Global Cues: Positive global trends also supported the rally. South Korea’s Kospi traded higher, while US markets closed in the green on Tuesday, providing further momentum to domestic equities.
- Crude Prices Ease: Brent crude futures fell 1.4 percent to USD 67.02 per barrel, alleviating inflationary concerns and providing support to equities.
- Rupee Strengthens: The Indian rupee gained 5 paise to trade at 88.75 against the US dollar in early trade, giving additional momentum to domestic markets.
- India VIX Declines: The volatility index, which gauges investor sentiment, dropped 3.68 percent to 10.66. A lower VIX signals reduced market uncertainty, encouraging investors to take on more risk.Nifty Outlook“Nifty closed near the day’s low, but oscillators remain accommodative for further upswings,” said Anand James, Chief Market Strategist at Geojit Financial Services. He added that upside targets are placed at 24,970 and 25,050, with immediate resistance at 24,720 and 24,800. Key support levels are at 24,500 and 24,336.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
October 01, 2025, 12:18 IST
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