Market Commentary Quick Review News Details

Sensex settles 685 pts higher; Nifty ends above 22,750

(06-Oct-26   15:54)

The key equity indices ended with major gains on Tuesday, extending their gains for a second consecutive session, supported by positive global cues and upbeat quarterly business updates ahead of the Reserve Bank of India's interest rate decision. The Nifty closed above the 22,750 mark. Pharma, FMCG and private bank stocks advanced, while IT, realty and PSU bank stocks declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex jumped 685.34 points or 0.95% to 73,067.81. The Nifty 50 index added 220.35 points or 0.98% to 22,776.10. In the past two trading sessions, the Sensex gained 1.61% and Nifty rose 1.58%.

In the broader market, the BSE 150 MidCap Index gained 1.23% and the BSE 250 SmallCap Index rose 1.38%.

The market breadth was strong. On the BSE, 2,827 shares rose and 1,550 shares fell. A total of 246 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 8.03% to 13.59.

Economy:

The World Bank raised India's FY27 GDP growth forecast to 7.1% from 6.6%, citing resilient domestic demand and strong momentum in consumption, investment and exports. Investment and exports grew around 12% in Q1 FY27, while services remained the largest driver of domestic growth. The bank also raised its 2026 South Asia growth forecast to 6.9% from 6.3%, while lowering the forecast for the region excluding India to 3.6% from 4.1%. Higher energy prices and El Ni'o remain key risks to the outlook.

Meanwhile, India's services sector strengthened in September, with the seasonally adjusted HSBC India Services PMI Business Activity Index rising to 55.2 from 54.1 in August, marking the strongest growth since June. However, the average growth during Q2 FY27 was the weakest since the quarter ended March 2022. The improvement was supported by stronger domestic demand, while export business continued to expand at a slower pace. Input-cost pressures eased to a 10-month low, reducing the need for price increases, while service providers' expectations for future activity improved for the second consecutive month.

New Listings:

Shares of Shah Investors Home ended at Rs 173.75 on the BSE, representing a premium of 4.04% as compared with the issue price of Rs 167.

The stock debuted at Rs 171 on the BSE, a premium of 2.4% over its issue price.

The stock has hit a high of Rs 179.55 and a low of Rs 171. On the BSE, over 3.16 lakh shares of the company were traded in the counter.

Shares of SRIT India ended at Rs 155.05 on the BSE, representing a premium of 19.27% as compared with the issue price of Rs 130.

The stock debuted at Rs 139.80 on the BSE, a premium of 7.54% over its issue price.

The stock has hit a high of Rs 155.05 and a low of Rs 139.80. On the BSE, over 3.59 lakh shares of the company were traded in the counter.

Buzzing Index:

The Nifty Pharma index jumped 0.86% to 28,582.10. The index fell 3.06% in the past three trading sessions.

Wockhardt (up 5.47%), Laurus Labs (up 3.99%), Divis Laboratories (up 3.85%), Gland Pharma (up 3.25%), Sai Life Sciences (up 3.1%), Piramal Pharma (up 2.89%), Ajanta Pharma (up 2.51%), Alkem Laboratories (up 1.92%), Zydus Lifesciences (up 1.8%) and Sun Pharmaceutical Industries (up 1.37%) rose.

Stocks in Spotlight:

Trent surged 12.78% after the company reported strong revenue growth for the second quarter and the first half of FY27, supported by continued expansion across its retail formats.

The company's standalone revenue from operations, excluding GST, rose 23% year on year to Rs 5,788 crore in Q2 FY27 from Rs 4,724 crore in Q2 FY26. Revenue for the first half of FY27 increased 21% to Rs 11,454 crore from Rs 9,505 crore in the corresponding period a year earlier. Trent crossed the 1,000-store milestone for its Zudio format during the quarter. As of 30 September 2026, the company's portfolio stood at 1,342 stores across Westside, Zudio and other lifestyle brands.

BGR Energy Systems hit the upper circuit of 5% after the company entered into a Master Restructuring Agreement with National Asset Reconstruction Company (NARCL). NARCL is acting through India Debt Resolution Company under the agreement to restructure BGR Energy's outstanding debt.

Steamhouse India hit an upper limit of 10% after the company reported strong growth in consolidated profit for Q1 FY27. Consolidated net profit rose 80.25% YoY and 30.12% QoQ to Rs 18.34 crore in Q1 FY27. Revenue from operations increased 13.35% YoY but declined 7.10% QoQ to Rs 128.62 crore. The company said the YoY revenue growth was primarily driven by a 46.07% increase in steam sales.

Meesho jumped 5.28% after the company said net merchandise value (NMV) generated through its Content Commerce ecosystem grew 152% year-on-year, supported by more than 1.6 lakh active creators across India over the past 12 months.

Honasa Consumer rallied 8.26% after the beauty and personal care company said it expects another strong quarter in Q2 FY27, supported by broad-based growth across its focus categories and brands. The company expects net sales value (NSV) growth in the early-thirties year on year during the quarter, building on the momentum recorded in Q1 FY27.

Transrail Lighting rose 4.57% after the company secured new orders worth Rs 412 crore in its Transmission & Distribution (T&D) business. The orders mainly comprise domestic transmission-line reconductoring projects using high-temperature low-sag (HTLS) conductors manufactured by the company. With the latest wins, Transrail Lighting's order intake for the year has increased to Rs 2,021 crore. The company also has L1 orders totalling Rs 409 crore.

Global Markets:

US stock futures traded higher on Tuesday, signaling a positive opening on Wall Street. Dow futures were up around 219 points.

European shares rose towards one-week highs, led by healthcare stocks after Genmab reported positive drug-trial results, while eurozone bond yields eased after a recent surge.

Asian stocks ended higher, tracking an overnight rally on Wall Street led by technology and artificial intelligence-linked stocks. Mainland Chinese markets remained closed for a holiday.

US stocks ended higher on Monday, with the Nasdaq Composite closing at a record high as technology stocks gained. The Dow Jones Industrial Average rose 0.18% to 51,267.90, while the S&P 500 gained 0.66% to 7,773.95. The Nasdaq advanced 1.05% to 27,477.31.

AI-linked stocks led the gains. Nvidia rose 2.12% to a record closing high, while Microsoft, Meta Platforms and Tesla also advanced. Nvidia's market capitalisation rose to about $5.76 trillion.

US Treasury yields remained elevated despite the equity rally. The 10-year Treasury yield rose to around 5.31%, its highest level since April 2002, while the 30-year yield climbed to around 5.69%.

Crude oil prices steadied on Tuesday after falling nearly 2% on Monday, as increased Middle East exports and supply commitments eased concerns over shortages. Brent crude settled at around $100.32 a barrel on Monday.

The Federal Reserve's minutes from its September 15-16 meeting are due on Wednesday, 7 October, and will be watched for clues on policymakers' views on inflation, employment and the future path of interest rates.

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