Banking Rally Lifts Indian Markets: RBI Policy Boosts Nifty To 24,800, Sensex Ends Near 81,000

Indian equity markets snapped their eight-day losing streak, with the Nifty index reclaiming 24,800, driven by a 700-point rally in Nifty Bank. This came after the Reserve Bank of India held steady on repo rates and revised inflation forecasts lower. The central bank also announced a slew of reforms for the banking space, including increased loan limits.

On Wednesday, the Sensex closed 715 points higher at 80,983, while the Nifty 50 ended up 225 points at 24,836. Broader markets mirrored the optimism, with the Nifty Midcap index rising 0.8% and the Smallcap index gaining 1.1%.

However, the retail investor sentiment surrounding the Nifty 50 remained 'bearish' by market close on Stocktwits.

Stock Moves

Sectorally, barring PSU banks, all indices ended in the green. Media (+4%), pharmaceuticals (+1.2%), and real estate (+1%) saw strong buying. A notable mover in the media space was Sun TV, which closed with 12% gains.

Kotak Mahindra Bank, Axis Bank, ICICI Bank, and HDFC Bank were among the top Nifty gainers, driven by the RBI's reforms push. 

Tata Motors ended over 5% higher after its demerger came into effect; the record date has been set at October 14.

Pfizer India rose 3% after US President Donald Trump announced a deal with the American parent company to provide key prescription medications at steeply discounted prices through a new government-run online platform. The rest of the pharmaceutical space also saw a relief rally, with Sun Pharma and Lupin gaining 3%. 

Shriram Finance gained 5% after the company shot down reports that Japan's Mitsubishi UFJ Financial Group (MUFG) was in talks to buy a 20% stake worth ₹23,200 crore.

Stock Calls

Ashok Kumar Aggarwal of Equity Charcha is bullish on TVS Supply Chain Solutions. It recently inaugurated a new facility in Iowa (USA) to support local manufacturing. On its technical charts, he noted that its Relative Strength Index (RSI) was ranging between 37 and 45 on its daily, weekly, and monthly time frame charts. 

He shared a short-to-medium term trade call on TVS Supply with an accumulation zone between ₹124-₹126 with a stop loss at ₹118 on a closing basis. The short-term target is set at ₹142, and a medium-term target price is ₹161.

Mayank Singh Chandel shared a swing trade call on Hindustan Zinc. He noted that the stock was consolidating near the gap resistance at ₹483.05, with rising volumes indicating strong upside interest. Chandel recommended a buy on a close above ₹483.05, with a stop loss at ₹463 and a target price of ₹535.

Markets: What Next?

Krishna Pathak highlighted Nifty support near the 24,540–24,600 zone, with immediate resistance around the 24,800–24,900 levels. He added that the index was trading above the 9-day Exponential Moving Average (EMA), which indicates a short-term bullish momentum. If it breaks out above 24,800, it could open the path towards 24,900–25,100. But sustained weakness below 24,600 can extend declines towards 24,540.

Globally, European markets traded higher, while US stock futures indicate a weak start on Wall Street after a deadlock over healthcare and government spending led to the US government shutdown for a first time in nearly seven years.

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