Weekly Indian Stock Market Update Report- September 29 to October 3, 2025 | Scrolls
- Editor
- Oct 5
- 2 min read
by KarNivesh | 05 October, 2025
The Indian stock market displayed strong resilience during the week despite persistent foreign institutional investor (FII) outflows and global uncertainties. The Nifty 50 rose 1.05% to 24,894.25, while the Sensex climbed 1.05% to 81,207.17, marking a notable recovery. The rally was driven by robust domestic institutional investor (DII) inflows, a supportive RBI policy stance, and improving global sentiment, although concerns about US-India trade tensions and rupee depreciation lingered.
Market & Sector Performance
Broad-based buying pushed most indices higher. The Nifty Metal Index led gains, rising 1.83%, supported by optimism over infrastructure spending and potential benefits from US import tariffs on steel. Bank Nifty advanced 0.44% on expectations of stronger credit growth, while the Nifty IT Index rose 0.42% despite US visa fee hikes. The only laggard was Pharma, which slipped 0.31% due to regulatory and pricing pressures.
Globally, equity markets gained momentum. The Nasdaq Composite jumped 1.54%, the Dow Jones rose 1.10%, and the S&P 500 gained 1.08%, supported by optimism about AI-driven growth and prospects of US Federal Reserve easing. In Asia, Shanghai Composite rose 0.51%, Hang Seng gained 0.37%, while Nikkei 225 fell 0.25% amid manufacturing weakness.
Macroeconomic Updates
At its October 1 meeting, the RBI maintained the repo rate at 5.50%, upgraded India’s GDP forecast to 6.8%, and reduced the CPI inflation outlook to 2.6% for FY 2025-26. Governor Sanjay Malhotra’s remarks suggested potential rate cuts later this year if conditions remain stable. Inflation remained subdued—CPI at 2.07% in August and WPI turning positive at 0.52%—indicating price stability.
Corporate & Industry Updates
The Q2 FY 2026 earnings season begins in October with major IT companies in focus. Global tech performance buoyed sentiment—NVIDIA posted revenue of ₹3.88 lakh crore ($46.7 billion), up 56% YoY, driven by AI demand. Salesforce also reported strong growth, reflecting resilient global IT spending. In India, HDFC Bank and ICICI Bank are expected to show solid credit growth and asset quality improvements.
IPO & Primary Market Activity
October 2025 is poised for record IPO activity. Tata Capital’s ₹15,512 crore IPO (Oct 6–8) will be India’s fourth-largest, followed by LG Electronics India’s ₹11,607 crore IPO and WeWork India’s ₹3,000 crore issue. The SME segment hit a historic high with 53 SME IPOs raising ₹2,309 crore in September, the most ever in a single month.
Currency & Bond Markets
The rupee closed at ₹88.77 per USD, near an all-time low, depreciating 0.22% for the week amid FII outflows of ₹8,347 crore and annual outflows totaling ₹1.98 lakh crore. Pressure stemmed from higher US visa fees (₹8.3 lakh per application, formerly $100,000), trade tariffs, and festive-season gold imports. The 10-year G-Sec yield eased to 6.51%, reflecting the RBI’s dovish tone.
Technical & Sentiment Indicators
Technically, Nifty 50 has resistance at 24,950–25,000 and support at 24,600. India VIX fell to 10.29, signaling stable sentiment. While FIIs continued heavy selling, DIIs purchased ₹13,013 crore, cushioning the market.
Outlook
The week ahead will see key global data releases and the start of India’s corporate earnings season. Focus sectors include Metals, Banking, and IT, while large IPOs may drive liquidity. Despite currency pressures and trade friction, strong domestic fundamentals and steady monetary policy continue to support India’s long-term growth narrative.
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