SENSEX ADDS 141 PTS; EUROPEAN MKT OPENS LOWER

The domestic equity benchmarks traded with minor gains in afternoon trade following the RBI`s decision to keep interest rates unchanged. The Nifty traded above the 25,000 level. Realty, pharma and media shares advanced while FMCG and oil & gas shares declined.

At 13:30 IST, the barometer index, the S&P BSE Sensex was up 141.58 points or 0.17% to 81,775.90. The Nifty 50 index rose 64.90 points or 0.26% to 25,078.05.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 1.20% and the S&P BSE Small-Cap index jumped 1.40%.

The market breadth was strong. On the BSE, 2,863 shares rose and 1,000 shares fell. A total of 115 shares were unchanged.

RBI Policy Outcome:

Reserve Bank of India (RBI) Governor Shaktikanta Das announced that the Monetary Policy Committee (MPC) has decided to keep interest rates unchanged, aligning with market expectations, while shifting its policy stance from "withdrawal of accommodation" to "neutral." The MPC voted by a 5:1 majority to maintain the policy repo rate at 6.5%. The RBI also retained its GDP growth target for FY25 at 7.2%. However, Consumer Price Index (CPI) inflation for September is expected to rise significantly due to unfavorable base effects and increasing food prices, according to the governor.

Gainers & Losers:

Tata Motors (up 2.56%), Trent (up 2.54%), Cipla (up 2.10%), State Bank of India (up 1.98%) and Shriram Finance (up 1.94%) were major Nifty gainers.

Nestle India (down 2.31%), ITC (down 1.48%), Britannia Industries (down 1.44%), Oil and Natural Gas Corporation (ONGC) (down 1.29%) and HDFC Bank (down 1.01%) were major Nifty losers.

Stocks in Spotlight:

Alembic Pharmaceuticals fell 0.48%. The company announced the successful completion of the United States Food and Drug Administration (US FDA) inspection for its oncology formulation facility located at Panelav, Gujarat.

Ajmera Realty & Infra India added 4.58% after the company reported collections of Rs 133 crore in Q2 FY25, up by 20% from Rs 111 crore recorded in Q2 FY24.

Rites jumped 9.21% after the company announced that it has signed a Memorandum of Understanding (MoU) with Etihad Rail for developing railways and related infrastructure services works in UAE and wider region.

Arvind SmartSpaces advanced 5.16% after the company signed a new residential apartment project in Bengaluru, with a total estimated saleable area of 4.2 lakh sq. ft. and a top-line potential of Rs 600 crore.

The Phoenix Mills rallied 4.69% after the company said that its total consumption stood at approximately Rs 3,289 crore in Q2 FY25, registering a growth of 25% year on year (YoY).

Welspun Enterprises rallied 3.54% after the company has secured order worth Rs 1,989.40 crore from Brihanmumbai Municipal Corporation (BMC) for the construction of tertiary treated water conveyance tunnel from Dharavi to Ghatkopar.

Ceinsys Tech zoomed 16.77% after the company received letter of award (LoA) from State Water and Sanitation Mission (SWSM), Water Supply and Sanitation Department (WSSD) for appointment of system integrators worth Rs 331.61 crore.

JSW Infrastructure rose 0.46%. The company said that it has received Letter of Intent from Maharashtra Maritime Board (MMB) for developing and operating a Port at village Murbe in Palghar District of Maharashtra.

Global Markets:

European stocks traded lower while Asian stocks traded mixed on Wednesday, as investors remained cautious amid ongoing geopolitical tensions and a lack of concrete stimulus details from China.

Chinese shares experienced a sharp decline as investors were disappointed by the absence of specific measures to boost the economy. Despite repeated calls from investors, Beijing has been hesitant to implement targeted fiscal stimulus.

US stocks rebounded on Tuesday, following a decline the previous day, as oil prices eased and investors assessed the situation in the Middle East. The S&P 500 gained 0.97%, the Nasdaq Composite rose 1.45%, and the Dow Jones Industrial Average added 0.3%.

Markets are now closely watching for clues about future US interest rate policy, as doubts persist regarding the Federal Reserve`s plans for further rate cuts. The minutes of the Fed`s September meeting are scheduled for release later on Wednesday, and several Fed officials are also set to speak.

Consumer price index inflation data, due on Thursday, is expected to play a significant role in shaping the Fed`s outlook.

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