Indian stock market surged on October 1, with the Sensex jumping 716 points and the Nifty 50 rising 225 points, ending an eight-day losing streak. This sharp rally was driven by positive signals from the Reserve Bank of India, strong GDP growth forecasts, and improved investor sentiment across various sectors.
RBI Policy Boosts Market Momentum
The Reserve Bank of India kept its repo rate steady at 5.5% and maintained a neutral policy stance. Governor Sanjay Malhotra’s optimistic comments about India’s growth prospects further lifted investor confidence. The RBI raised its GDP growth forecast from 6.5% to 6.8% and revised its inflation outlook downward, easing concerns and creating expectations of a possible rate cut in December.
Investors Gain ₹4 Lakh Crore in a Day
Market capitalisation of BSE-listed companies soared by over ₹4 lakh crore, bringing total wealth to ₹455.5 lakh crore by session end. This massive wealth creation reflected widespread buying, especially in banking, finance, auto, realty, and media stocks.
Top Gainers and Losers
Tata Motors led the gainers with a 5.56% rise, followed by Shriram Finance up 5.16%, and Kotak Mahindra Bank gaining 3.76%. Bajaj Finance, SBI, and UltraTech Cement saw modest declines, making them the session’s notable losers.
Sector Performance and Market Breadth
Almost all major indices closed in the green. Nifty Media delivered a strong 4% gain, while Nifty Bank, Financial Services, Private Bank, Realty, and Auto also posted steady increases. Only the PSU Bank index ended slightly lower.
What This Means for Investors
The RBI’s stable rates and upbeat outlook have calmed nerves and set the stage for positive market action in the coming months. As broad-based buying continues and sentiment turns constructive, market watchers expect further moves in anticipation of rate cuts and economic growth.
