On October 7, 2025, Indian equity markets extended their winning streak to a fourth consecutive session, buoyed by renewed investor optimism, favorable lending reforms, and strong IPO activity. The BSE Sensex ended 136 points higher at 81,926.75, while the Nifty 50 closed at 25,108.30, up 0.12 %. (Business Standard)
Key Market Drivers: Lending Reforms & Pre-Earnings Optimism
The market rally was powered largely by positive signals from financials and regulatory easing. The Reserve Bank of India’s (RBI) new lending reforms — aimed at boosting credit flow and easing norms for large companies — injected fresh momentum into banking and NBFC stocks. (Reuters)
Ahead of the September quarter earnings release, several corporates provided upbeat “pre-earnings” updates, further fueling confidence among investors. (Reuters)
Twelve of the sixteen major sectoral indices ended in the green. Mid-cap and small-cap segments also posted gains of ~0.4 % and 0.6 %, respectively. (Reuters)
The Nifty Bank index also contributed, with HDFC Bank and ICICI Bank leading gains. (Hindustan Times)
Sectoral Highlights: Winners and Laggards
Top gainers included Bharti Airtel, HCL Tech, UltraTech Cement, and Power Grid. (Business Standard)
Telecom stocks also fared well — Bharti Airtel surged ~1.35%, and Vodafone Idea jumped ~9%, aided by speculation over a possible governmentOne-time settlement of its AGR dues. (HDFC Sky)
In contrast, FMCG, PSU Banks, Media, and IT indices witnessed some profit booking pressure. (Business Standard)
Reliance Industries saw a modest gain of 0.72% but underperformed relative to peers. (MarketWatch)
IndusInd Bank rose ~1.33%, outperforming the broader indices, though it remains far off from its 52-week highs. (MarketWatch)
Meanwhile, Tata Investment Corporation shares fell ~9% in October, following a sharp rally in September, as the frenzy appears to be cooling off amid profit booking. (The Economic Times)
IPO Buzz: LG & Canara HSBC Eye Listing
The IPO wave added further impetus. LG Electronics India’s offering was fully subscribed on Day 1, reflecting strong investor appetite. (Reuters)
In parallel, Canara HSBC Life Insurance set its IPO price band at ₹100–₹106, targeting a valuation of ~₹100.7 billion. The subscription window opens for retail investors on October 10. (Reuters)
Meanwhile, activity is rising around the much-anticipated Tata Capital IPO, positioning India on track for another record year in new listings. (Financial Times)
Analyst Views & Stock Picks
According to Vaishali Parekh of Prabhudas Lilladher, the Nifty 50 has decisively broken above its 50-day exponential moving average (~24,900), paving the way for a fresh upside bias. She sees resistance in the 25,250–25,300 zone and support near 24,950. Her top stock calls include IDFC First Bank, M&M Financial Services, and Graphite India. (mint)
Separately, Mirae Asset Sharekhan’s Somil Mehta recommended Mahindra & Mahindra (M&M) and Bharat Forge as picks with strong upside potential. For M&M, a target of ₹3,720 was suggested. (The Times of India)
Outlook & Key Levels to Watch
As markets look ahead, momentum is expected to hinge on the actual Q2 earnings, further credit growth data, and domestic/international macro cues. Sustaining the rally will require conviction beyond just regulatory tweaks and IPO enthusiasm.
From a technical angle, support lies around 24,950–25,000, while upside resistance could be seen in the 25,250–25,300 region. (Business Standard)
In conclusion, Tuesday’s session underscored the resilience of India’s equity markets. With strong fundamentals, regulatory momentum, and an active IPO calendar, the near-term outlook remains cautiously optimistic — barring global shocks or disappointing corporate results.