Indian equity benchmarks are set to commence Wednesday's trading session on a watchful footing, influenced by caution ahead of the central bank's policy review. Early morning indicators showed GIFT Nifty trading at 22,674 at 8:46 AM, marking a drop of 125 points or 0.55 percent, pointing to an initial dip on Dalal Street. The primary focal point for market participants today is the outcome of the Reserve Bank of India's Monetary Policy Committee review scheduled for 10 AM, with investors closely watching for a potential interest rate increase.
Previous Session Recovery Across Domestic Indices
The domestic market entered Wednesday following a strong rebound on Tuesday, where benchmark indices logged gains for the second consecutive trading day. The BSE Sensex advanced by 685.34 points, or 0.95 percent, to settle at 73,067.81, while the NSE Nifty 50 added 220.35 points, or 0.98 percent, to finish at 22,776.10. Tuesday's upside was anchored by broad-based buying across pharmaceutical, fast-moving consumer goods, media, and consumer durables segments, whereas sectoral indices tracking IT and cement closed lower.
RBI Rate Trajectory and Monetary Policy Outlook
RBI Governor Sanjay Malhotra is slated to reveal the monetary policy decision at 10 AM. The benchmark repo rate currently stands at 5.25 percent, having remained steady throughout the previous four consecutive policy deliberations. However, consensus among economists leans toward an expectation of a 25 basis point rate hike. If implemented, such a step would represent the first upward revision in borrowing costs since February 2023, effectively reversing the cycle after four rate reductions amounting to a cumulative 125 basis points across 2025.
Global Market Moves and Asian Trading Cues
Sentiment on Wall Street provided a constructive lead overnight, as both the S&P 500 and the Nasdaq Composite climbed to unprecedented all-time highs on Tuesday. The S&P 500 picked up 0.58 percent to close at 7,818.93, marking its first recorded close above the 7,800 threshold. The tech-heavy Nasdaq added 0.45 percent to settle at 27,599.79, while the Dow Jones Industrial Average rose 0.49 percent to end at 51,521.28. In contrast, Asian equity bourses presented a mixed trading picture on Wednesday morning, with Japan's Nikkei 225 trading flat and South Korea's Kospi retreating in early deals.
Titan's Growth Momentum and Ola Electric Rights Issue
Among individual corporate names, shares of Titan will be closely tracked following a robust quarterly update. The retail company revealed a 22 percent year-on-year expansion in its domestic business operations during Q2FY27. Segment-wise, its flagship jewellery division registered a 21 percent year-on-year rise, while the watches and EyeCare divisions expanded by 30 percent and 28 percent year-on-year, respectively.
Electric mobility player Ola Electric is also poised for active trading after receiving in-principle approval from stock exchanges for its planned rights issue, which aims to raise capital of up to Rs. 1,000 crore.
Blue Dart Developments and Mphasis Contract Win
Logistics leader Blue Dart faces multiple simultaneous developments on Wednesday. Blue Dart Aviation received a goods and services tax show cause notice amounting to Rs. 27.1 crore covering the period FY23-FY24. Simultaneously, the company announced an upward price revision ranging between 9 percent and 12 percent for its domestic delivery operations. Additionally, it entered into a memorandum of understanding with the National Capital Region Transport Corporation to examine parcel logistics opportunities along the Delhi-Ghaziabad-Meerut Namo Bharat corridor.
Within the technology pack, Mphasis will be under scrutiny after bagging an IT services contract valued at 35.4 million euros from Social Security Scotland.
Godrej Consumer Expansion and HCL Group Commitments
Godrej Consumer Products marked a significant step in Southeast Asia by inaugurating the initial phase of its manufacturing site located in Indonesia's Kendal Special Economic Zone on Tuesday. The new plant forms an integral component of the company's planned IDR 500 billion capital outlay, representing approximately Rs. 250 crore in the region.
Meanwhile, HCL Group revealed a fresh investment outlay of Rs. 500 crore directed at expanding its HCL IT City campus in Lucknow. In a parallel announcement, HCLTech launched a specialized training initiative designed to upskill 1,000 students in artificial intelligence competencies.
Asian Paints Dividend, JSW Cement Capacity, and Corporate Exits
Asian Paints notified exchanges that its board of directors will convene on October 29 to review and potentially approve an interim dividend payout for FY27.
In the infrastructure space, JSW Cement commissioned a new 1.00 MTPA cement grinding installation situated at Nagaur in Rajasthan. This commissioning lifts the company's aggregate operational cement grinding capacity to 25.10 MTPA. Its consolidated clinker capacity, incorporating the operations of its joint venture JSW Cement FZC, now totals 9.74 MTPA.
On the leadership front, Apollo Tyres CFO Gaurav Kumar tendered his resignation effective October 6, pointing to personal and professional commitments outside the firm. Lastly, Kanohar Electricals reported a massive 140 percent surge in net profit, yet its shares suffered a 7.62 percent decline during trading due to prevailing valuation reservations among investors.
