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Indian equities made a strong recovery on October 1, 2025, after eight consecutive sessions of falling. Investors welcomed Reserve Bank of India’s policy decision that kept rates at status quo while sounding cautiously optimistic about inflation and growth.
The bounce was well-rounded with the heavyweights in banking, IT, auto, and pharma leading the way, while PSU banks trailed.
The RBI left the repo rate unchanged at 5.5%, as was expected. The central bank reduced its inflation forecast and maintained its growth estimate, providing relief to equity investors.
Stock in News:
Shriram Finance
Japanese bank MUFG is in advanced stages of talks to buy a ~20 % stake through preferential allotment, worth ~₹232 billion (~$2.61 bn). Shriram Finance, however, has refuted any knowledge of the deal.
Tata Motors
Shares rallied ~5.15% after the demerger of its commercial vehicles business took effect. The company also announced the record date for the demerger.
HUDCO / PFC / IREDA
Infrastructure financing companies including HUDCO, PFC, and IREDA jumped up to ~5%, following RBI’s measures easing infrastructure financing norms.
KPIT Tech
KPIT Tech shares are strongly up by more than 3 percent on October 1, a day following a 10 percent decline, after the street valued the management’s commitment on margin guidance, attributing the decline to a probable individual investor selling stake.
Sun Pharma
The stocks broke seven-day losing string on October 1 after Pfizer sealed deal with Donald Trump because it was regarded as a positive for Indian pharma counters.