Stock Market Today: Sensex Rises 351 Points, Nifty Nears 25,000 as Banking and IT Stocks Lead Gains

Overview

• Nifty 50 rose 0.42% to 24,998.70 and Sensex gained 0.43% to 81,558.41, led by strong performances in banking and IT sectors.

• While banking and IT stocks surged, smallcaps declined, signaling selective investor participation and risk aversion in mid-to-small-cap segments.

• Lupin’s FDA observations, Vedanta’s mixed production numbers, and Vodafone Idea’s CFO appointment influenced stock-specific movements amid broader market strength.

Indian stock market today showed bullish signals as benchmarks indexes traded in the positive range, led by banking and IT stock rally. Nifty 50 gained 104.45 points to 24,998.70, up by 0.42%, while Sensex increased 351.24 points to 81,558.41, a gain of 0.43%.

Nifty Bank jumped 404.15 points to 55,993.40, recording a healthy 0.73% rise. IT sector saw even better performance, with Nifty IT jumping 528 points to 34,477.75, a 1.56% growth.

However, the share market news was not all good across all sectors. BSE Smallcap index fell 124.90 points to 53,250.08, a 0.23% fall, showing prudence on the part of investors in small stocks. Let’s see how different stocks performed today based on data from Moneycontrol Live Stock Updates.

Banking Sector Updates

Banks reported their first-quarter operating metrics, presenting a scenario of consistent growth. Kotak Mahindra Bank posted strong numbers with net advances rising 15.8% to Rs. 4.62 lakh crore year-on-year and total deposits rising 14.6% to Rs. 5.28 lakh crore. CASA deposits of the bank jumped 11.2% to Rs. 2.23 lakh crore as reported by CNBC TV18.

AU Small Finance Bank witnessed total deposits increase 20.8% to Rs. 1.32 lakh crore, while gross advances increased 22.4% to Rs. 1.17 lakh crore. The CASA ratio, however, fell to 29.4% from 32.4% last year. L&T Finance witnessed retail disbursements increase 25% to Rs. 18,850 crore, retailisation gaining 98%.

Top Gainers and Losers on Nifty 50

Healthcare and finance stocks led the gainers' list on Nifty 50. Max Healthcare led the way as the day's best performer, rising 4.65% to Rs. 1,118.90, followed by Shriram Finance, which rose 3.31% to Rs. 667.15. Bajaj Finance rose 2.70% to Rs. 1,016.50, while Apollo Hospital rose 2.48% to Rs. 7,634. Axis Bank was the fifth among the top gainers with a 2.29% rise to Rs. 1,208.

On the other hand, metal and utility shares came under selling pressure. Tata Steel headed the losers, down 2% at Rs. 169.74. Power Grid Corporation lost 1.55% at Rs. 285.20, and Titan Company dropped 1.34% at Rs. 3,406.90. Tata Motors and Bharat Electronics also found mention in the losers' list, down 1.26% and 1.14% respectively.

Also Read: Tata Motors Share Price Trades at Rs. 718.90, Demerger in Focus

Corporate Developments Shape Trading Activity

Some key corporate developments had an impact on Indian stock market action. Lupin got four observations by US FDA after the inspection of its Pithampur Unit-2 facility, which was Official Action Indicated. In spite of this regulatory blow, the drug firm signed off on the launch of its Liraglutide injection in the US, providing a bioequivalent to Novo Nordisk's Victoza as reported by scanx.trade.

According to a NDTV Profit report, Vedanta announced its Q2 production figures. It reported aluminium production increasing 1% to 6.17 lakh tonnes sequentially year-on-year. Yet, the stock fell 0.47% to Rs. 468.60. Zinc saleable metal production of the company fell 6% to 2.46 lakh tonnes, and silver fell 22% to 1.44 lakh tonnes.

Vodafone Idea announced a major management shift with the appointment of Tejas Mehta as Chief Financial Officer from October 6 as reported by Business Standard. The stock fell 2.15% to Rs. 8.64 even as trading volumes rose 45.57% over its five-day average.

Foreign Institutional Activity

Foreign Institutional Investors continued their selling streak in the cash segment, with net outflows of Rs. 1,583.37 crore on October 3, following Rs. 1,605.20 crore in outflows on October 1. Domestic Institutional Investors partially offset this pressure, recording net buying of Rs. 489.76 crore on October 3 and Rs. 2,916.14 crore on October 1.

Market Breadth and Trading Activity

Advance-decline ratio of the NSE was 1,205 advancing stocks versus 1,548 declining stocks, reflecting broader market weakness against benchmark gains. HDFC Bank at Rs. 974 with Rs. 1,010.70 crore of value, and Reliance at Rs. 1,368.70 with Rs. 969.79 crore of trading value were among the top active stocks in the F&O segment .

Investor Outlook

Indian stock market today showed resilience with selective strength in banking and technology stocks, but broader market participation was subdued. Investors will need to watch for foreign institutional flows, announcements of corporate earnings, and developments in global economics, most importantly US trade policy and movements in the gold price, that may affect near-term market direction.

Also Read: Stock Market Today: Sensex Trades at 80,990, Nifty at 24,826, Adani Power Falls 3.38%, Metal Stocks Rally

FAQs

1. Why did the Indian stock market rise today?

The Indian stock market gained today due to strong buying in banking and IT sectors, supported by robust quarterly updates from key financial institutions. Positive domestic cues and stable global markets also boosted investor confidence, helping benchmark indices close higher despite foreign investor selling.

2. Which sectors drove the market gains?

The rally was primarily led by the banking and IT sectors. Nifty Bank rose 0.73%, while Nifty IT surged 1.56%. Strong quarterly growth in loan books, expanding deposits, and upbeat earnings outlooks from technology firms provided the key momentum for these sectors.

3. Why did smallcap stocks decline despite overall market gains?

Smallcaps witnessed profit-taking after recent strong performances. Investors preferred large-cap stability amid global uncertainty, FII outflows, and selective institutional buying in defensive and high-liquidity sectors like banking and IT, leading to a divergence in performance.

4. How did corporate developments impact market sentiment?

Corporate news played a significant role in shaping intraday movements. Lupin’s FDA observations and Vedanta’s weaker metal output weighed on sentiment, while new product launches, management changes, and IPO announcements like Canara HSBC Life Insurance added market buzz.

5. What should investors watch for in the coming days?

Investors should monitor FII and DII activity, Q2 earnings results, and macroeconomic data such as inflation and industrial output. Global trends, including US trade policy developments and crude oil price movements, will also influence near-term market direction.