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EQUITY
Post Session: Quick Review
Oct-01-2026

Indian equity markets remained under pressure on Thursday, extending their losses for the fourth consecutive session, as traders remained cautious amid ongoing concerns over developments in West Asia, fears of higher interest rates, and sustained selling by foreign investors in recent sessions.

Both the Sensex and Nifty ended lower, despite a late-session recovery, amid broad-based selling across sectors. Gains in select IT counters were unable to offset weakness across financial, auto and other major sectors. Auto stocks were among the key laggards, as September sales numbers fell to match market expectation.

Some of the important factors in trade:

FIIs sell over Rs 10,000 crore in equities: Investors stayed worried amid continued foreign fund outflows and global uncertainties. Foreign institutional investors (FIIs) extended their selling spree, offloading equities worth Rs 10,148.41 crore on Wednesday.

India records 13% rainfall deficit during monsoon season: Traders remained cautious as the India Meteorological Department (IMD) stated that India received 87.4 per cent of its long-period average (LPA) rainfall during the southwest monsoon season from June to September, recording a rainfall deficit of about 13 per cent between June 1 and September 30. 

India's fiscal deficit reaches 41.9% of FY27 target by August-end: Traders were cautious as the Controller General of Accounts (CGA), in its latest data, showed that India's fiscal deficit touched 41.9 per cent of the current financial year (FY27) budget target at the end of August 2026.

On the global front: European stocks were trading in red, weighed down by persistent inflation concerns, rising oil prices, and elevated bond yields. Asian markets closed mixed following the mixed cues from Wall Street overnight.

The BSE Sensex ended at 71909.70, down by 570.59 points or 0.79% after trading in a range of 71292.88 and 72572.90. There were 5 stocks advancing against 25 stocks declining on the index. (Provisional)

The few gaining sectoral indices on the BSE were IT up by 1.80%, TECK up by 1.06%, and Telecom up by 0.52, while Auto down by 3.09%, Metal down by 2.18%, Consumer Disc down by 2.07%, Basic Materials down by 1.90% and Utilities down by 1.71% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Infosys up by 1.22%, HDFC Bank up by 0.73%, TCS up by 0.37%, HCL Technologies up by 0.33% and Kotak Mahindra Bank up by 0.10%. On the flip side, Maruti Suzuki India down by 4.56%, Tata Steel down by 4.12%, Mahindra & Mahindra down by 4.02%, Adani Ports and Special Economic Zone down by 3.41% and ITC down by 3.09% were the top losers. (Provisional)

Meanwhile, citing expectations of strong growth in the April-September period, domestic rating agency Crisil has raised its FY27 GDP growth estimate for India to 7 per cent from its earlier projection of 6.6 per cent. Crisil Chief Economist D K Joshi said the revision was driven by expectations of robust growth in the first half, with GDP growth in Q1 estimated at 7.8 per cent. He said “The economy is doing well. We expect the first half to witness strong growth, while growth will slow in the second half”.

Joshi said the agency has assumed crude oil prices to average between $87 and $93 per barrel in FY27, compared with $70 per barrel in FY26, while making its growth projections. The monsoon is another key factor, with rainfall currently 12 per cent below the long-period average and potentially affecting the winter crop. Reservoir levels and soil moisture will be crucial for the rabi crop and could, in turn, have an impact on economic growth. On the currency front, he said the rupee is undervalued and is likely to appreciate to 93.5 against the US dollar by March 2027. He noted that previous episodes of currency depreciation have also been followed by a strengthening of the rupee after an initial period of pressure.

Crisil expects the Reserve Bank of India (RBI) to raise the policy rate by 25 basis points each in October and December. However, Joshi said the rate hikes are unlikely to hurt private capital investment significantly, as corporates are sitting on large cash reserves and have deleveraged balance sheets. He added that the RBI is likely to continue using various tools to manage excess liquidity in the financial system. He also stressed the need to focus on skilling to make the growth process more broad-based and sustainable. While artificial intelligence could automate some existing jobs, he said it could also create new employment opportunities, as previous technological revolutions have done.

The CNX Nifty ended at 22421.95, down by 198.50 points or 0.88% after trading in a range of 22217.30 and 22610.60. There were 13 stocks advancing against 37 stocks declining on the index. (Provisional)

The top gainers on Nifty were Infosys up by 4.11%, HDFC Life Insurance up by 2.49%, HDFC Bank up by 1.76%, SBI Life Insurance up by 1.49% and Max Healthcare up by 1.20%. On the flip side, Bajaj Auto down by 7.62%, Maruti Suzuki India down by 4.86%, Shriram Finance down by 3.84%, Tata Steel down by 3.42% and Adani Ports and Special Economic Zone down by 3.36% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 169.39 points or 1.62% to 10,436.61, France’s CAC fell 111.71 points or 1.42% to 7,852.80 and Germany’s DAX lost 151.89 points or 0.61% to 25,047.30.

Asian markets settled mixed on Thursday, tracking the mixed cues from Wall Street overnight. South Korean market rose, led by gains in chipmakers after the country’s monthly exports topped $120.9 billion in September, an 83.5% year-on-year growth, driven by unprecedented AI-fuelled semiconductor demand. However, investors remained cautious due to elevated oil prices and rising US bond yields, driven by persistent concerns over interest rate hikes. Meanwhile, markets in China and Hong Kong remained closed on account of National Day holiday.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

--

--

--

Hang Seng

--

--

--

Jakarta Composite

6,009.50

-61.64

-1.03

KLSE Composite

1,630.36

-20.81

-1.26

Nikkei 225

68,956.72

2,203.00

3.30

Straits Times

5,667.67

-8.21

-0.14

KOSPI Composite

6,971.35

133.31

1.95

Taiwan Weighted

48,353.49

413.36

0.86
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