The Indian stock market remained mixed this week as benchmark indices traded with slight weakness while select mid-cap and sectoral stocks delivered strong gains. The overall tone of the market was shaped by global cues, the Reserve Bank of India’s (RBI) latest policy update, and expectations of a heavy IPO pipeline in the coming months.
Benchmark Indices Struggle for Direction
The Nifty 50 slipped around 0.19% to close near 24,786 points, while the Sensex dropped about 0.14%. The weakness largely came from the financial sector, with banking and NBFC stocks witnessing mild profit booking after a strong rally in September.
However, broader indices like mid-caps and small-caps outperformed, showing investors’ continued interest in high-growth opportunities outside the blue-chip pack.
RBI Policy Boosts Confidence
The Reserve Bank of India (RBI) kept the repo rate unchanged at 5.50%, maintaining its neutral stance. More importantly, the RBI revised GDP growth projections to 6.8% for FY 2025–26 and lowered the inflation outlook, which provided comfort to investors.
Another big reform announced was the increase in loan limits against shares and bonds, now raised nearly five times to ₹1 crore. This move is expected to unlock liquidity for retail and institutional investors, potentially boosting market participation in IPOs and secondary markets.
$8 Billion IPO Pipeline Set for Q4 2025
One of the biggest talking points in Dalal Street is the upcoming IPO wave, with companies expected to raise nearly $8 billion (~₹67,000 crore) in the last quarter of 2025.
Some of the most anticipated IPOs include:
- Tata Capital – one of the largest NBFCs in India.
- LG Electronics India – the consumer durable giant.
- Several fintech and manufacturing firms seeking to tap strong investor demand.
This IPO rush is expected to add significant depth and breadth to the Indian stock market.
Sector & Stock Highlights
- Tata Investment Corporation extended its rally, gaining nearly 12% this week.
- Tata Steel surged over 3%, supported by firm commodity prices.
- Power Grid Corporation of India climbed 3.15%, outperforming peers in the energy sector.
- Hindustan Unilever posted modest gains of 0.34%.
- ICICI Bank, Oil India, Lupin, and TCS remain in focus ahead of upcoming quarterly results and dividend announcements.
Investors are particularly watching TCS, which is set to declare dividends on October 9, with the record date fixed for October 15.
Algo Trading Rules Extended for Retail
SEBI has provided more time for brokers to comply with algorithmic trading rules for retail investors. The new deadlines are:
- Register one strategy by October 31, 2025.
- Complete full API-based registration by November 30, 2025.
This extension is seen as a positive move, giving brokers time to integrate systems while allowing retail investors a safer entry into algo-based trading.
Global Cues & Investor Sentiment
Global sentiment remains cautious due to the U.S. government shutdown concerns, though analysts believe the long-term impact on India will be limited. On the domestic side, stable RBI policy, IPO buzz, and festive season optimism are expected to support equities in October.
Investors are also eyeing the special Muhurat Trading session on October 21, a one-hour symbolic trading event to mark Diwali, which usually sees strong market participation.
Outlook
Overall, the Indian stock market is in a consolidation phase after strong gains earlier in the year. With the RBI policy providing stability, a robust IPO pipeline, and festive season demand expected to boost consumption, market experts believe the medium-term outlook remains bullish.
However, short-term volatility cannot be ruled out due to global uncertainties and sector-specific rotations. Investors are advised to stay diversified, keep an eye on banking, metal, and power stocks, and look for opportunities in the upcoming IPOs.
