Indian Stocks Rebound as Asian Markets Strengthen; RBI Decision in Focus
Indian equities staged a strong rebound on Tuesday as gains across Asian markets, easing crude oil prices and positive corporate updates lifted investor sentiment ahead of the Reserve Bank of India’s monetary policy decision.
The Sensex gained around 700 points to close at 73,067.81, while the Nifty 50 rose 0.98% to 22,776.10. The rally followed gains in the previous session, helping the benchmarks recover after their longest weekly losing streak in 25 years.
Banking stocks were among the biggest contributors to the rally. Axis Bank rose about 2.1%, while Kotak Mahindra Bank gained nearly 3.8% following positive updates on advances and deposits. Broader markets also participated, with small- and mid-cap stocks advancing strongly.
Global cues provided additional support. Japan’s Nikkei 225 rose 1.1%, while Hong Kong’s Hang Seng gained 0.7%. Falling bond yields and softer crude prices also improved the risk appetite across markets. Brent crude slipped below $100 a barrel amid expectations of increased oil supplies.
Among individual stocks, Trent surged 12.6% after projecting a 23% year-on-year increase in standalone revenue for the September quarter. Reliance Industries also gained 2.7%, supported by optimism surrounding the potential listing of Jio Platforms and a higher portfolio weighting by Jefferies.
RBI decision could determine the next move
Investors are now turning their attention to the RBI Monetary Policy Committee’s decision on October 7. Markets are largely expecting a 25-basis-point increase in the repo rate, although analysts are also watching the central bank’s guidance for clues about the possibility of further tightening.
The RBI’s decision comes as inflation remains above its medium-term 4% target, while external risks, elevated global yields and pressure on the rupee continue to complicate the policy outlook. The Indian rupee ended Tuesday at around ₹96.42 against the US dollar, its weakest level in more than two months.
With the recent rebound still in its early stages, investors are likely to remain cautious. A rate decision broadly in line with expectations could support the recovery, while a more aggressive stance could bring fresh volatility to equities.
Source: The New Indian Express
