Nifty gains 0.6% as softer US rate outlook lifts Indian equities

Indian equities recovered as weaker US employment data reduced concern about an imminent Federal Reserve rate increase and oil prices eased from recent highs. Asian markets were higher, adding to the support at the open. The session’s advance came after a prolonged run of weekly losses, so the move reads as a relief rebound; the RBI decision and quarterly results remain near-term tests of sentiment.

Lending stocks were among the supports. Bajaj Finance and Shriram Finance featured among the stronger names in session reports. Bajaj Finance said new loans booked in the September quarter grew 11% year on year, and its board had approved a proposed capital raise of up to Rs 17,500 crore. Those updates gave investors company-specific reasons to focus on lenders, although the broader group’s performance does not establish how the proposed fundraise will affect future per-share outcomes.

ITC and Tata Motors Passenger Vehicles were also reported among the leading gainers, but the coverage reviewed did not establish a specific new catalyst for either stock. HDFC Bank’s provisional business update was strong, but reports described its shares as reversing after an early rise. IT heavyweights, including HCL Technologies and Infosys, faced selling pressure. Accenture’s results had raised expectations for a positive read-through, but that did not prevent weakness in parts of the Indian IT group.

The recorded close showed consumer durables and telecom-related shares among the stronger sectors, but available session reports did not identify a single verified catalyst for those moves. Metals saw mixed intraday accounts, including reports of early buying, so the slight weakness at the recorded close cannot be confidently assigned to one factor. Pharma and healthcare lagged, but no distinct sector-wide trigger was established in the reporting reviewed.

The RBI’s Monetary Policy Committee began its three-day meeting on October 5 and is due to announce its decision on October 7. Market coverage described a 25-basis-point increase as the dominant expectation, while Bank of Baroda expected the repo rate to remain unchanged at 5.25%. The decision matters for rate-sensitive financials and for bond-market expectations; no policy decision was announced today.

No same-day release of CPI, IIP, GST, trade or PMI data, and no new SEBI or Finance Ministry measure, was identified in the material reviewed.

Reuters reported that weaker-than-expected US employment data pushed the market-implied probability of an October Fed rate increase below 25%; traders cited the shift as supportive of emerging-market risk appetite. US equities had closed higher on Friday and Asian markets advanced on Monday. The US 10-year Treasury yield was still reported at 5.21%, a reminder that global funding conditions remained tight even as rate-hike concerns eased.

The retreat in oil offered some relief to an oil-importing economy, though Brent remained above $100 a barrel in the available session reports. The rupee was little changed at the reported late-morning snapshot, with persistent foreign outflows still a concern. The latest provisional cash-market figures available in the reporting were for October 1: foreign institutional investors were net sellers of Rs 9,484 crore, while domestic institutions were net buyers of Rs 10,042 crore. October 5 net-flow data were not available.

The reported corporate news was mainly business updates rather than full quarterly results. HDFC Bank’s provisional second-quarter update showed advances up 16.3% year on year and deposits up 18.8% year on year. The bank also said, following RBI approval, that Anup Bagchi would become its next managing director and chief executive. The operating figures were growth against the year-ago period; comparable analyst expectations were not available in the reports reviewed.

Bajaj Finance reported 11% year-on-year growth in new loans booked in the September quarter. Separately, its board approved a proposed raise of up to Rs 11,700 crore through a qualified institutional placement and Rs 5,800 crore through preferential warrants to promoter Bajaj Finserv. These are reported operating and financing updates, not a full earnings comparison; consensus estimates were not available.

Four companies—Orient Cables, AceVector, Runwal Enterprises and German Green Steel & Power—listed on October 5. Orient Cables’ strong opening contrasted with AceVector’s discount debut; available reports described the other two listings as near-flat or modestly positive. The spread in outcomes shows that individual IPO demand did not move uniformly, even during a broader equity rebound.