The Sensex climbed 584.81 points (0.72%) to close at 81,634.81 and the Nifty rose 217.40 points (0.88%) to close above the psychological mark of 25,013.20.
This rebound comes ahead of the RBI policy outcome, which has investors on edge. Today’s gains were widespread, with positive momentum across sectors except for metals, which remained in the red. This turnaround marks a hopeful moment for the markets after losing $6 billion in foreign institutional investor (FII) outflows, triggered by escalating tensions in the Middle East.
Impact on the stock market
Apart from metals, the majority of sectoral indices finished the day in the green. Key sectors that contributed to the market’s recovery include:
- Auto, bank, healthcare, realty, capital goods, power, telecom, media: All up between 1% and 2%.
- BSE midcap index rose by 2%, and the smallcap index surged by 2.5%, signalling broader market participation in today’s recovery.
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| Sector/Index | Performance |
| IT & BPM sector | +0.47% |
| Healthcare sector | +1.72% |
| Oil & Gas sector | +1.27% |
| Real estate sector | +0.96% |
| PSU Bank in India | +1.35% |
Top gainers today
| Company | Price | Change % |
| Trent Share Price | 8,041.95 | +7.95 |
| Bharat Elec Share Price | 280.25 | +4.83 |
| Adani Enterpris Share Price | 3,160.70 | +4.73 |
| Adani Ports Share Price | 1,418.55 | +4.67 |
| M&M Share Price | 3,165.85 | +3.45 |
Top losers today
| Company | Price | Change % |
| SBI Life Insura Share Price | 1,728.05 | -3.35 |
| Tata Steel Share Price | 159.52 | -2.94 |
| Titan Company Share Price | 3,493.35 | -2.67 |
| Bajaj Finserv Share Price | 1,838.15 | -2.19 |
| JSW Steel Share Price | 998.20 | -2.02 |
Market aftermath: Impact on stocks
Hyundai Motor India IPO set for major debut
Hyundai Motor India prepares to launch its highly anticipated IPO. The company is expected to offer shares at a price band between Rs 1,865-1,960 per share, and the issue will open for subscriptions between October 15-17. This Rs 25,000 crore IPO is poised to be the largest public offering in India’s auto sector since Maruti Suzuki’s IPO in 2003.
Hyundai Motor India’s IPO is drawing attention because its South Korean parent company is offloading 17.5% of its stake via an Offer for Sale (OFS). At the top end of the price band, Hyundai’s Indian arm would be valued at close to $19 billion. With the IPO expected to list on October 22, all eyes will be on its stock market debut.
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Skipper Ltd surges on new coverage
Shares of Skipper Ltd skyrocketed over 15% today after Nuvama Institutional Equities initiated coverage with a “buy” rating and set a target price of Rs 650. This gives the stock a potential upside of 46% from its last closing price.
Skipper, which has already seen a 120% year-to-date rise, is set to benefit from strong trends in the transmission and distribution (T&D) sector. The company’s prospects look bright, thanks to the National Electricity Policy, which signals a massive Rs 9.2 lakh crore capital expenditure over the next decade for T&D.
With the global shift toward renewable energy, Skipper’s position in high-voltage T&D systems places it in a strong position to capitalise on both domestic and export opportunities. Analysts believe that this will translate into substantial long-term growth for the company.
ITC gains on hotel business demerger
ITC shares rose by 2.2% to Rs 514.8 after the National Company Law Tribunal (NCLT) approved the demerger of its hotel business. ITC shareholders will own 60% of the new entity, while ITC will retain 40% ownership. This move, announced back in August 2023, signals a shift for ITC, allowing its hotel arm to chart its growth independently.
This demerger reflects ITC’s strategy of giving its matured hotel business more focus and an optimal capital structure to grow independently. ITC’s stock has performed well this year, with a 10% rise year-to-date, and has surged by 54% over the last two years.
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Crude oil prices dip amid profit-booking
After witnessing a 3% surge on Monday, crude oil futures traded lower today, with Brent oil futures falling by 1.58% to $79.65, and WTI futures dropping by 1.53% to $75.96. In the Indian market, MCX October crude oil futures fell to ₹6,385, down 1.39% from the previous close of ₹6,475.
The recent escalation of conflict in West Asia, especially involving Iran and Israel, has caused fluctuations in oil prices, raising concerns about potential disruptions in supply from the region. Iran, a major producer of crude oil, is heavily involved in the conflict, and any attacks on its oil infrastructure could have a major impact on global supply.
However, market experts have pointed out that OPEC (Organization of Petroleum Exporting Countries) has approximately 7 million barrels per day of spare production capacity. This could help to mitigate any supply shortfall. Additionally, while Hurricane Milton is expected to pass through the Gulf of Mexico, its impact on oil production is expected to be minimal, although several ports in the region have imposed restrictions that could impact oil shipments.
Conclusion
The Indian stock market has finally seen some relief after a brutal six-day losing streak. Led by gains across most sectors, the Sensex and Nifty managed to bounce back, instilling cautious optimism among investors. With the RBI policy outcome around the corner, there’s still plenty of uncertainty to navigate, but today’s recovery is a step in the right direction.
On a stock-specific note, Hyundai Motor India’s IPO is generating significant buzz, while Skipper Ltd and ITC continue to see positive momentum based on strong fundamentals and corporate actions. Meanwhile, the volatility in the crude oil markets remains a wildcard, driven by geopolitical tensions in the Middle East.
As always, the key for investors will be to keep a close eye on both global events and domestic developments to navigate these turbulent times.
For more stock market insights, check out the StockGro blog.
