Nifty gains 0.98% as banks and Trent support Indian equities

The advance extended as bank shares attracted buying ahead of the Reserve Bank of India’s policy decision and as select companies’ quarterly business updates gave investors company-specific reasons to add exposure. Softer crude and firmer overseas equities also supported sentiment. The market’s rise was broad enough to lift the benchmarks, though foreign selling remained a counterweight.

Trent was among the strongest index contributors after reporting standalone revenue of Rs 5,788 crore for the September quarter, up 23% year-on-year. The company said it added 10 Westside stores and 17 Zudio stores during the quarter. The update supplied a clear operating catalyst, but no consensus estimate was available in the material reviewed for comparison.

Bank shares also benefited from quarterly business updates. Kotak Mahindra Bank reported year-on-year growth of 24.7% in net advances to Rs 5.77 lakh crore and 23.2% in deposits to Rs 6.51 lakh crore. Axis Bank reported a 22.7% rise in gross advances to Rs 13.84 lakh crore and 20.7% growth in deposits to Rs 14.52 lakh crore. These figures were reported business updates, not quarterly earnings; no comparable market forecasts were available.

Reliance Industries was another positive contributor. Market coverage linked buying in the stock to reports about a planned Jio Platforms IPO; the reported plans remain prospective, rather than a completed transaction. HUL also advanced, but the reports reviewed did not identify a specific company announcement behind the move. They likewise did not establish a common catalyst for telecom and internet shares. IT, NBFC and insurance shares lagged; the available reports did not give a verified, stock-specific explanation for that underperformance.

US equities closed higher, with technology shares supporting the advance, and Asian markets were generally firmer. Market reports pointed to the retreat in crude from recent highs and improved global risk appetite as supportive for Indian shares. At the same time, US Treasury yields remained elevated, a potential constraint on flows to emerging markets; that is a market risk, not proof of the cause of any particular Indian sector move.

The latest available cash-market flow figures were for 5 October: foreign investors were net sellers of Rs 4,699.14 crore of Indian equities, while domestic institutions were net buyers of Rs 5,181.62 crore. These are not 6 October flow figures. The domestic buying more than offset the reported foreign selling on that prior session.

HSBC’s India Services PMI rose to 55.2 in September from 54.1 in August, indicating faster expansion, but it was below the preliminary estimate of 55.8. HSBC also reported a September composite PMI of 55.9, up from 54.3. The quarterly average was the weakest since the quarter ended March 2022, tempering the stronger monthly reading.

The RBI’s Monetary Policy Committee was meeting, with its decision due on 7 October. There was no policy decision on 6 October. No new CPI, IIP, GST or trade release for the session was identified in the material reviewed.

The PMI release offered a mixed macro signal: stronger month-on-month services activity, but a softer quarterly average and a reading below the flash estimate. For Indian markets, that leaves the RBI’s assessment of inflation and growth, as well as its policy stance, as the immediate domestic focus.