Sensex, Nifty climb after two-day fall on easing inflation, upbeat global cues

The domestic equity benchmarks rebounded sharply today, ending a two-day losing streak amid improved global sentiment and easing domestic inflation. The Sensex and Nifty rose in tandem with other Asian markets, with the Nifty closing above the 25,300 level. The rally was driven by strong buying in realty, PSU bank, and metal stocks.

Easing inflation in India boosted hopes of a potential RBI rate cut in December. An improvement in U.S.-China trade relations, a firmer rupee, and a steady start to the earnings season lifted investor confidence. Additionally, rating agencies reaffirming India's positive outlook helped counter persistent concerns over global growth.

The S&P BSE Sensex advanced 575.45 points or 0.70% to 82,605.43. The Nifty 50 index rose 178.05 points or 0.71% to 25,323.55. In the past two trading sessions, the Sensex and Nifty slipped 0.57% and 0.55%, respectively.

Bajaj Finance (up 4.03%), Bajaj Finserv (up 3.18%) and Larsen & Toubro (up 2.23%) boosted the Nifty higher today.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index advanced 1.07% and the S&P BSE Small-Cap index added 0.78%.

The market breadth was strong. On the BSE, 2,429 shares rose and 1,749 shares fell. A total of 151 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 5.60% to 10.53.

Economy:

India's merchandise trade deficit widened to an 11-month high of $32.15 billion in September, according to Commerce Ministry data released on Wednesday.

Exports rose to $36.38 billion in September from $35.10 billion in August, while imports increased to $68.53 billion from $61.59 billion in the previous month.

During the first six months of FY26, goods exports to the U.S., India's largest trading partner, grew 13% year-on-year to $45.82 billion, while imports from the U.S. rose to $25.59 billion from $23.47 billion a year earlier.

Meanwhile, International Monetary Fund (IMF) on Tuesday revised India's growth forecast for the fiscal year 2025-26 (FY26) upward to 6.6%, a 0.2 percentage point increase from its previous estimate of 6.4%.This revision is largely due to India's strong growth momentum in the first quarter of FY26, which saw the economy grow at a rate of 7.8%. The upward revision is attributed mainly to the carryover effect from a strong first quarter, rather than any offsetting of recent US tariffs.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell 0.32% to 6.486 from the previous close of 6.507.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 88.0500 compared with its close of 88.8100 during the previous trading session.

MCX Gold futures for 5 December 2025 settlement rose 0.69% to Rs 127,095.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.22% to 98.84.

The United States 10-year bond yield declined 0.25% to 4.015.

In the commodities market, Brent crude for December 2025 settlement declined 0.03 cents or 0.05% to $62.36 a barrel.

Global Markets:

The US Dow Jones index futures is currently up by 191 points, signalling a positive opening for US stocks today.

Most of the European stocks advanced on Wednesday as investors closely monitoring Prime Minister Sebastien Lecornu's new government after he promised on Tuesday to suspend a controversial pension reform until after the 2027 election, one of the signature economic policies of President Emmanuel Macron.

Most Asian indices ended higher as China's consumer price index declined 0.3% year-on-year in September, moderating from the 0.4% drop recorded in August, according to the National Bureau of Statistics.

U.S. President Donald Trump on Tuesday accused China of failing to purchase soybeans'calling it an 'economically hostile act''and warned of possible retaliation, including a cooking oil embargo.

Overnight in the U.S., markets were volatile. The S&P 500 slipped 0.2% to 6,644.31 after swinging between losses of 1.5% and gains of 0.4%. The Nasdaq Composite fell 0.8% to 22,521.70, while the Dow Jones Industrial Average gained 0.4%, or 202.88 points, to close at 46,270.46.

Meanwhile, Federal Reserve Chair Jerome Powell signalled that the central bank may soon end its balance sheet reduction and hinted at further interest rate cuts ahead.

Stocks in Spotlight:

ICICI Lombard General Insurance Company added 8.71% after the company reported a standalone net profit of Rs 819.54 crore in Q2 FY26, up 18.1% as against the Rs 693.95 crore posted in Q2 FY25. Total income rose 12.5% YoY to Rs 6,582.67 crore, while profit before tax increased 17.2% to Rs 1,077.27 crore from Rs 919.01 crore a year ago.

Share India Securities spurted 9.01% after its Finance Committee approved a Rs 50 crore issue of Non-Convertible Debentures (NCDs) on a private placement basis.

One 97 Communications rose 2.65% after the company's board approved a series of intra-group transactions aimed at simplifying its corporate structure and enhancing operational efficiency.

Ola Electric Mobility hit the upper circuit of 5% after the company announced that it will unveil its new energy product, Ola Shakti, on 16 October 2025, at 10 AM (IST) ' a day earlier than planned.

Tech Mahindra shed 0.62%. The company reported a 4.73% jump in consolidated net profit to Rs 1,194.50 crore on a 4.82% increase in net sales to Rs 13,994.90 crore in Q2 FY26 over Q1 FY26. However, as compared with Q2 FY25, the company's consolidated net profit dropped 4.4% while revenue grew 5.1%.

Cyient DLM tanked 5.41%. The company's consolidated net profit surged 108.1% to Rs 32.15 crore in Q2 FY26 compared with Rs 15.45 crore in Q2 FY25. Net sales declined 20.2% YoY to Rs 310.63 crore in Q2 September 2025.

Indian Railway Finance Corporation (IRFC) rose 0.24%. The company's standalone net profit jumped 10.19% to Rs 1,776.98 crore in Q2 FY26 as against Rs 1,612.65 crore posted in Q2 FY25. However, total revenue from operations declined 7.64% year-on-year (YoY) to Rs 6,371.89 crore in the quarter ended 30 September 2025.

Ksolves India added 3.41% after the company's consolidated net profit jumped 30.84% to Rs 8.40 core in Q2 FY26 compared with Rs 6.42 crore in Q1 FY26. Revenue from operations increased 5.34% QoQ to Rs 39.67 crore during the quarter ended 30th September 2025.

Tips Music tanked 5.18%. The company reported a 10.44% increase in standalone net profit to Rs 53.19 crore in Q2 FY26, compared to Rs 48.16 crore posted in Q2 FY25. Revenue from operations rose 10.68% year-on-year (YoY) to Rs 89.22 crore in the quarter ended 30 September 2025.

Indobell Insulations soared 6.24% after the company announced it has secured an order worth Rs 2.56 crore for insulation works. The contract has been awarded for the bridge and roof job at HPCL's Visakh Refinery in Visakhapatnam.

Power Mech Projects fell 1.54%. The company secured an order worth Rs 2,500 crore from Bharat Heavy Electricals (BHEL) for the Singareni Super Thermal Power Project, Stage-II, Telangana.

Mishra Dhatu Nigam gained 2.08% after the company announced that it had secured an order worth Rs 306 crore, taking its open order book to around Rs 2,212 crore.

GTPL Hathway slipped 2.06% after the company reported a 27.93% decline in consolidated net profit to Rs 9.21 crore for the second quarter of FY26, compared to Rs 12.78 crore in Q2 FY25. However, revenue from operations rose 12.09% year-on-year (YoY) to Rs 959.05 crore for the quarter ended 30 September 2025.

IPO Update:

The initial public offer of Midwest received bids for 57,29,640 shares as against 31,17,460 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (15 October 2025). The issue was subscribed 1.84 times.

The issue opened for bidding on Wednesday (15 October 2025) and it will close on Friday (17 October 2025). The price band of the IPO is fixed between Rs 1,014 and 1,065 per share. An investor can bid for a minimum of 14 equity shares and in multiples thereof.

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